How long it takes to repair your credit score depends on what happened to it. If your credit score is low as a result of errors or identity theft, the process could take a couple of months. If you've had financial difficulties leading to late or missed payments, it could take much longer.
How long does it take to correct an error on your credit report?
If your credit score is low, the first thing you should do is check for errors. This might be your own account information being reported incorrectly, the credit bureau confusing you with someone with a similar name or even identity theft.
If you see an error and file a dispute, the credit bureau has 30 days to investigate it. If they need more time, they can extend that deadline by 15 days by notifying you. Once the investigation is complete, they must notify you of the results within five days. If the credit bureau confirms that negative information on your report was inaccurate, it will immediately correct it.
In some cases, the credit bureau may reject your dispute. A common scenario is when an identity thief had so much of your personal information that the credit company believed it was you. In these situations, you will need to repeat the dispute process with additional supporting documentation or pursue further legal action.
How long do credit repair services take?
If you choose to use a credit repair service, they generally do two things. One is disputing errors as outlined above. The other is trying to get accurate negative information removed.
Some creditors will remove accurate negative information as either a goodwill gesture for a long-term customer with a temporary financial problem or in exchange for paying down the debt. One common tactic is a pay-for-delete where you agree to pay all or a portion of the debt in exchange for the creditor removing the delinquent account remark from your credit report.
Creditors have no obligation to remove accurate information from your credit report or to negotiate at all. Policies and procedures vary by creditor but will usually include back-and-forth letters to get everything in writing.
On average, credit repair takes about three to six months. Your score should gradually improve throughout the process each time a creditor agrees to make a change in your favor.
How long does it take to rebuild your credit?
If you have negative items on your credit report that you can't get removed, you will need to repair your credit report by rebuilding positive credit history over time. This includes the basics such as paying on time and not opening too many new accounts.
Most negative items remain on your credit report for seven years. Bankruptcies may remain on your credit report for up to ten years, although many creditors stop reporting Chapter 13 bankruptcies after seven years.
The good news is that credit scoring gives greater weight to more recent activity. So the score hit for negative items will gradually lessen over time rather than you having to wait the full seven to ten years.
Talk to your lawyer
You have important rights under state and federal law to be treated fairly by creditors and to have your credit information reported accurately. If a creditor violates your rights, you may not only be entitled to have them correct your credit report but to also sue them for damages and your attorney's fees. To learn more, ask a lawyer today.
This article contains general legal information and does not contain legal advice. Rocket Lawyer is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.
FAQs
On average, credit repair takes about three to six months.
How long does it take to fix a 500 credit score? ›
For instance, going from a poor credit score of around 500 to a fair credit score (in the 580-669 range) takes around 12 to 18 months of responsible credit use. Once you've made it to the good credit zone (670-739), don't expect your credit to continue rising as steadily.
How long does it take to raise credit score 100 points? ›
In fact, some consumers may even see their credit scores rise as much as 100 points in 30 days. Steps you can take to raise your credit score quickly include: Lower your credit utilization rate. Ask for late payment forgiveness.
Can I go from 500 to 700 credit score? ›
The time it takes to increase a credit score from 500 to 700 might range from a few months to a few years. Your credit score will increase based on your spending pattern and repayment history. If you do not have a credit card yet, you have a chance to build your credit score.
How to go from 450 credit score to 700? ›
Pay on Time, Every Time
Making on-time payments every month is crucial to getting your credit score above 700. If you have some late payments on your credit report, it may make it more difficult to build your credit score. But over time, new positive information can outweigh old negative information.
Can you ever fix a bad credit score? ›
Repairing bad credit is possible but time-consuming. There is no one-size-fits-all strategy, and the process can be a minefield. You need to know what steps to take, where to find help and which credit repair companies to avoid. Your credit report and score both wield a huge amount of power over your personal finances.
Is 650 a good credit score? ›
As someone with a 650 credit score, you are firmly in the “fair” territory of credit. You can usually qualify for financial products like a mortgage or car loan, but you will likely pay higher interest rates than someone with a better credit score. The "good" credit range starts at 690.
What credit score is needed to buy a house? ›
The minimum credit score needed for most mortgages is typically around 620. However, government-backed mortgages like Federal Housing Administration (FHA) loans typically have lower credit requirements than conventional fixed-rate loans and adjustable-rate mortgages (ARMs).
Is 98 payment history good? ›
There is a very slim margin allowing for late payments before your credit score starts to suffer: 100% – Great. 99% – Good. 98% – Fair.
What credit score is needed to buy a car? ›
The credit score required and other eligibility factors for buying a car vary by lender and loan terms. Still, you typically need a good credit score of 661 or higher to qualify for an auto loan. About 69% of retail vehicle financing is for borrowers with credit scores of 661 or higher, according to Experian.
It's a good idea to pay off your credit card balance in full whenever you're able. Carrying a monthly credit card balance can cost you in interest and increase your credit utilization rate, which is one factor used to calculate your credit scores.
Why did my credit score go from 524 to 0? ›
Credit scores can drop due to a variety of reasons, including late or missed payments, changes to your credit utilization rate, a change in your credit mix, closing older accounts (which may shorten your length of credit history overall), or applying for new credit accounts.
How fast does credit score go up after paying off a credit card? ›
How long after paying off debt will my credit scores change? The three nationwide CRAs generally receive new information from your creditors and lenders every 30 to 45 days. If you've recently paid off a debt, it may take more than a month to see any changes in your credit scores.
Why is my credit score going down when I pay on time? ›
Using more of your credit card balance than usual — even if you pay on time — can reduce your score until a new, lower balance is reported the following month. Closed accounts and lower credit limits can also result in lower scores even if your payment behavior has not changed.
Can you recover from a 500 credit score? ›
The bad news about your FICO® Score of 500 is that it's well below the average credit score of 714. The good news is that there's plenty of opportunity to increase your score. 99% of consumers have FICO® Scores higher than 500. A smart way to begin building up a credit score is to obtain your FICO® Score.
Is it hard to come back from a 500 credit score? ›
You may have a tough time getting a loan or card
When your score is 500, you'll have trouble qualifying for some financial products. You will have to pay the highest rates on loans and credit cards, and you may pay more for car insurance. The good news is it might not take much to move the needle on your score.
How long does it take to build credit from 400 to 700? ›
It could take several years to build your credit from 400 to 700. The exact timing depends on which types of negative marks are dragging down your score and the steps you take to improve your credit going forward.
