The answer to this question depends on how damaged your credit is when you start rebuilding it. If your credit only is slightly damaged or if it hasn’t been build properly it can be rebuilt very quickly. You can usually predict how long it will take to rebuild your credit by looking at why it is low. We are going to talk more about that further down.
It is important to remember that the time frames we will be taking about below is the time frame required to completely rebuild you credit score in such a way that it is no longer affected by old sins at all. You credit score will start to improve a lot sooner, usually within a couple of month. It is possible to have a good credit score long before it has reached its full potential.
It is also important to remember that the information on this page is based on the prevailing law. Some states have regulation that differs from what I am about to say below.
Lets look at why your credit score is low and how long it might take to completely rebuild your credit score.
Do you have delinquent tax payment or other unpaid government fees?
Delinquent tax payments will stay on your records for 10 years. This means that it will take 10 year after you pay these for your record to be clean and for your credit score to reach its full potential.
Have you declared for bankruptcy?
A bankruptcy can stay on your record for up to 10 years. Your credit score will start to improve a couple of years after the bankruptcy.
Have you regular delinquent payments?
Delinquent payments stay on your record for seven years. The more you have the worse the affect on your credit score. Your score will start to improve once the bills are paid but it will take 7 years to have a clean record.
Have you many information requests?
Your credit score will be effected negatively if you have to many request for your financial record. This can happen if you apply for too many credits. Requests stay on your record for two years.
Have you go a lot of debt?
If your credit score is low due to a large amount of debt you will need to pay of the debt to improve your credit score again. Your credit score can improve very quickly if you are able to start reducing your debt. Another option to raising your score is too apply for a higher credit. This can help you improve your credit score as long as you do not use the credit. You can read more about how this works further down.
Have you got a lot of small loans?
If you have a lot of small loans it might be a good idea to combine them into one larger loan. This will help improve your credit score and will make your credit report look better. The best ways to do this is to tap into equity in your house if you have any. A house loan or mortgage as it more correctly is referred to is the cheapest type of credit you can get.
Have you got many credit cards?
A common advice to people who have a lot of credit cards is too close some of them down to improve their credit score. This is bad advice. Closing credit cards will usually give a short term boost but will have negative long term effect. Replace bad credit cards with new better ones but you should not strive after having as few cards as possible.
Have you a small approved credit?
How much of your available credit that you have used will have a larger effect on your credit score than the amount of your total debt. If you only have a small approved credit then it can have a very negative effect on your credit score if you used a large portion of it. The solution to this is easy. Apply for a raised credit and keep using the credit card as you have been using it. Your credit score will quickly improve as you are now using a smaller part of your available credit.
Have you got different types of credits
A possible reason for a bad credit score is that you only have one type of credit. If this is true you can sometimes quickly improve your credit score by buying something on installments. Make sure to make the payments in time.