{"id":36351,"date":"2022-11-22T09:18:54","date_gmt":"2022-11-22T17:18:54","guid":{"rendered":"https:\/\/financer.com\/?post_type=wiki&#038;p=36351"},"modified":"2024-01-19T08:16:29","modified_gmt":"2024-01-19T16:16:29","slug":"how-long-to-rebuild-credit","status":"publish","type":"wiki","link":"https:\/\/financer.com\/personal-finance\/articles\/how-long-to-rebuild-credit\/","title":{"rendered":"How Long Does It Take To Rebuild Credit"},"content":{"rendered":"\n<p>If you\u2019ve had <a href=\"https:\/\/financer.com\/how-to\/help-with-bills\/\" data-type=\"how_to\" data-id=\"10221\" target=\"_blank\" rel=\"noreferrer noopener\">trouble paying bills<\/a> in the past, a credit score drop might have hurt your ability to secure affordable loans in the future. <\/p>\n\n\n\n<p>But that\u2019s not necessarily a permanent problem. If you keep pace with the goals you\u2019ve set to rebuild your credit, you can return to a positive financial future sooner than you might think. <\/p>\n\n\n\n<p>Keep reading to learn more about how long it takes to rebuild your credit and what your first steps should be. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"What_Is_Rebuilding_Credit\">What Is Rebuilding Credit?<\/h2>\n\n\n\n<p><a href=\"https:\/\/financer.com\/ask-financer\/what-is-a-good-credit-score\/\">Credit scores<\/a>, or credit reports, are used as a way to assess your ability to repay a loan. The higher a <a href=\"https:\/\/financer.com\/blog\/how-often-does-your-credit-score-update\/\">credit score<\/a> is, the more likely it will be that potential lenders will approve your loan application. <\/p>\n\n\n<div class=\"fn_block block_fn_msg_box info\"><div class=\"fn_block__icon\"><\/div><p>Negative payment information on your credit profile, like <a href=\"https:\/\/financer.com\/wiki\/bankruptcy\/\" target=\"_blank\" rel=\"noopener\">bankruptcy<\/a>, late payments, and collections, will <strong>remain on your credit report for seven years<\/strong>. Chapter 7 bankruptcies\u00a0remain for up to 10 years.<\/p><\/div>\n\n\n<p>A low credit score can prevent you from getting a loan at all. If you\u2019ve had a significant <a href=\"https:\/\/financer.com\/wiki\/credit-score\/\">credit score<\/a> drop, and you\u2019re looking to rebuild your credit, you may be wondering what you can do to get things back on track. <\/p>\n\n\n\n<p><em>The process of getting your <a href=\"https:\/\/financer.com\/how-to\/improve-your-credit-score\/\" data-type=\"how_to\" data-id=\"10189\" target=\"_blank\" rel=\"noreferrer noopener\">credit score back on track<\/a> is different for everyone, so it\u2019s important to keep in mind that your path will be unique. <\/em><\/p>\n\n\n\n<p>However, there are some general areas that you\u2019ll want to focus on.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"How_to_Rebuild_Your_Credit\">How to Rebuild Your Credit<\/h2>\n\n\n<div class=\"single-article__steps\"> <style>\n .single-article__steps-items .single-article__steps-content{\n background:#FFFFFF;\n padding:30px;\n margin:0 0 30px 0;\n border-radius:10px;\n box-shadow:0 0 10px 0 rgba(0,0,0,0.14);\n width:calc(100% - 5px);\n}\n .single-article__steps-items .single-article__steps-counter{\n padding:5px 20px;\n border-radius:3px;\n background-color:#F5E7D8;\n display:inline-block;\n top:15px;\n left:-30px;\n position:relative;\n font-size:16px;\n font-weight:600;\n}\n\/* .single-article__steps-items::before{\n content:\"\";\n position:absolute;\n top:20px;\n left:0;\n height:calc(100% + 40px);\n border-left:2px dashed #e0e0e1;\n}*\/\n .single-article__conclusion-tag{\n padding:5px 20px;\n border-radius:3px;\n color:#000000;\n background-color:#F5E7D8;\n display:inline-block;\n top:15px;\n left:-30px;\n position:relative;\n font-size:16px;\n font-weight:600;\n}\n .single-article__conclusion-item{\n background:#FFFFFF;\n padding:30px;\n margin:0 0 30px 0;\n border-radius:10px;\n box-shadow:0 0 10px 0 rgba(0,0,0,0.14);\n}\n <\/style>\n <div class=\"single-article__steps-items\"><div class=\"single-article__steps-counter\" id=\"step_1\">Tip #1<\/div><div class=\"single-article__steps-content\"><h3 id=\"Keep-Your-Accounts-Current\">Keep Your Accounts Current<\/h3><p>If you have past due or open accounts on your credit report, a low credit score can negatively impact your credit. The best way to tackle this is to make sure that you don\u2019t miss any payments.<\/p><\/div><div class=\"single-article__steps-counter\" id=\"step_2\">Tip #2<\/div><div class=\"single-article__steps-content\"><h3 id=\"Pay-Off-Your-Debt\">Pay Off Your Debt<\/h3><p>Pay off any debt that you can both afford to pay off and that is currently impacting your credit.<\/p><\/div><div class=\"single-article__steps-counter\" id=\"step_3\">Tip #3<\/div><div class=\"single-article__steps-content\"><h3 id=\"Open-New-Account\">Open New Account<\/h3><p>If you have a history of having relatively few accounts open, this can impact your credit score. Opening new accounts, or at least new types of accounts, can help increase your overall credit score.<\/p><\/div><div class=\"single-article__steps-counter\" id=\"step_4\">Tip #4<\/div><div class=\"single-article__steps-content\"><h3 id=\"ReduceClose-Old-Accounts\">Reduce\/Close Old Accounts<\/h3><p>If you have an old account that you haven\u2019t used in a while, you can close it to reduce the amount of your overall outstanding debt.<\/p>\n<p>Closing an account \u201cde-activates\u201d it, so no more new purchases can be made with the account.<\/p><\/div><div class=\"single-article__steps-counter\" id=\"step_5\">Tip #5<\/div><div class=\"single-article__steps-content\"><h3 id=\"Keep-Your-Credit-Utilization-Low\">Keep Your Credit Utilization Low<\/h3><p>Keep your credit utilization as low as possible to help boost your credit score.<\/p><\/div><div class=\"single-article__steps-counter\" id=\"step_6\">Tip #6<\/div><div class=\"single-article__steps-content\"><h3 id=\"Optimize-Your-Credit-Report\">Optimize Your Credit Report<\/h3><p>If you think that any of the information listed on your credit report is incorrect or outdated, you can request an updated report from the credit bureau responsible for it.<\/p><\/div><\/div> <div class=\"single-article__conclusion\">\n <div class=\"single-article__conclusion-tag alt\" id=\"step_7\">Tip #7<\/div><div class=\"single-article__conclusion-item\"><div class=\"single-article__conclusion-content\"><h3 id=\"Keep-Your-Score-High\">Keep Your Score High<\/h3><p>The last thing you want to do is hurt your credit score by taking unnecessary actions.<\/p><\/div><\/div> <\/div>\n <\/div>\n\n\n<h2 class=\"wp-block-heading\" id=\"How_Long_Does_It_Take\">How Long Does It Take?<\/h2>\n\n\n\n<p>It can take anywhere <strong>from a few months to a few years<\/strong> to rebuild your credit, depending on how bad your credit is, to begin with. <\/p>\n\n\n\n<p>If you have a lot of debt and\/or late payments, it will take longer to rebuild your credit than if you have just a few negative items on your report.<\/p>\n\n\n\n<p>The best way to rebuild your credit is to make all of your payments on time, every time. You should also try to pay down your debts as much as possible. <\/p>\n\n\n\n<p>If you can show that you&#8217;re responsible with your finances, your credit score will slowly start to improve.<\/p>\n\n\n\n<p>It&#8217;s important to be patient when rebuilding your credit. It doesn&#8217;t happen overnight, but if you stick with it, you&#8217;ll eventually see the results you&#8217;re looking for.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Strategies_To_Speed_Up_Rebuilding_Your_Credit\">Strategies To Speed Up Rebuilding Your Credit<\/h2>\n\n\n\n<p>There\u2019s no one-size-fits-all approach to rebuilding your credit. It will take time, effort, and a little luck to see results. <\/p>\n\n\n\n<p>That being said, there are a few strategies that can drastically speed up the process. <\/p>\n\n\n\n<ul><li><strong>Avoid impulsive credit purchases<\/strong>. Impulsive purchases can hurt <a href=\"https:\/\/financer.com\/how-to\/improve-your-credit-score\/\">your credit score<\/a>, so avoid making them whenever possible. <\/li><li><strong>Keep credit use low<\/strong>. The best way to avoid impulsive credit purchases is to keep your credit use as low as possible. <\/li><li><strong>Keep debt to income ratio low<\/strong>. To help keep your credit utilization as low as possible, don\u2019t let your debt-to-income ratio get too high. <\/li><li><strong>Don&#8217;t apply for new credit cards<\/strong>. Every time you do, it triggers a hard inquiry on your report, which can temporarily lower your score.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Conclusion\">Conclusion<\/h2>\n\n\n\n<p>There\u2019s no doubt that rebuilding your credit will take time and effort. But, remember that this is a process that anyone can do. <\/p>\n\n\n\n<p>And, it\u2019s important to remember that anyone can see positive results with a little hard work. With a little patience and perseverance, you can see your credit score return to a healthy level. <\/p>\n\n\n\n<p>And, when that happens, you\u2019ll be one step closer to securing those loans, mortgages, and other forms of credit that you need to reach your financial goals.<\/p>\n","protected":false},"author":11463,"featured_media":51597,"comment_status":"open","ping_status":"closed","template":"","meta":{"disable_branded_featured_image":false,"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","ep_exclude_from_search":false,"footnotes":""},"categories":[16],"_links":{"self":[{"href":"https:\/\/financer.com\/wp-json\/wp\/v2\/wiki\/36351"}],"collection":[{"href":"https:\/\/financer.com\/wp-json\/wp\/v2\/wiki"}],"about":[{"href":"https:\/\/financer.com\/wp-json\/wp\/v2\/types\/wiki"}],"author":[{"embeddable":true,"href":"https:\/\/financer.com\/wp-json\/wp\/v2\/users\/11463"}],"replies":[{"embeddable":true,"href":"https:\/\/financer.com\/wp-json\/wp\/v2\/comments?post=36351"}],"version-history":[{"count":8,"href":"https:\/\/financer.com\/wp-json\/wp\/v2\/wiki\/36351\/revisions"}],"predecessor-version":[{"id":36628,"href":"https:\/\/financer.com\/wp-json\/wp\/v2\/wiki\/36351\/revisions\/36628"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/financer.com\/wp-json\/wp\/v2\/media\/51597"}],"wp:attachment":[{"href":"https:\/\/financer.com\/wp-json\/wp\/v2\/media?parent=36351"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/financer.com\/wp-json\/wp\/v2\/categories?post=36351"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}