How Fast Can You Rebuild Your Credit?

A good credit score is the key to any significant financial step, whether you’re aiming for better terms on an upcoming auto or home loan, lower interest rates, or simply wanting to unlock more financial opportunities.

However, rebuilding your credit score to good standing (usually considered 670 or higher, by FICO®) is not something you can achieve overnight, especially if you’ve been through some financial mishaps recently.

Rebuilding credit takes time, and the timeframe is influenced by a range of factors—some of which may not be under your control. Today, we’ll unpack how long it takes to rebuild credit and look at some steps you can take to speed up the process.

What Impacts Credit Rebuilding Time?

Your credit score is calculated based on a surprisingly large number of individual factors. If you’re unsure why your credit score isn’t rising the way you’d like, one of these issues may be impacting it.

Severity of Past Credit Issues

The types and severity of past credit missteps influence your rebuilding timeline more than you might think. Minor issues—like a slightly late payment—will have less impact than bankruptcy or foreclosure.

Significant negative items can remain on your credit report for a considerable period, often 7 to 10 years, affecting your score for much of that time. Rebuilding from something like bankruptcy, for example, will require some patience.

Starting Credit Score

Your initial credit score plays a crucial role in determining the length of time it will take to rebuild your credit. Think of it as your starting line: the lower your initial score, the longer and more arduous the journey to a significantly improved score will likely be. Climbing out of a very low score range demands consistent, positive financial behavior sustained over a considerable period.

For instance, if your credit score is in the 400-500 range, which is considered very low, it may take several years of responsible credit management to see a substantial improvement. This is because negative information, such as late payments, collections, or bankruptcies, can remain on your credit report for seven to ten years, and their impact on your score diminishes gradually over time.

Consistency of Positive Actions

Consistently practicing good credit habits is paramount for rebuilding your score. Making all payments on time is the single most influential factor, accounting for 35% of your credit score. Therefore, a track record of reliable payments demonstrates responsible credit management.

Credit Utilization

Credit utilization compares the amount of credit you’re using to your total available credit. Maintaining low credit utilization is crucial; many experts often recommend keeping it below 30%, but FICO® suggests aiming for under 10% for the best possible impact on your score.

Length of Credit History

The age of your credit accounts is also super important to your credit score. Older accounts that have been well-managed contribute positively to your credit score. For this reason, you might want to avoid closing older credit accounts unnecessarily—even if it’s been a while since you used them.

Credit Mix

It’s standard advice, but having a mix of different types of credit, such as credit cards, installment loans, and mortgages, really does benefit your credit score. This is also commonly suggested as a good move for those looking to build credit from scratch.

However, you should exercise caution if you already have a wide range of accounts open. Also, avoid opening too many new credit accounts quickly, as this can negatively impact your score.

How To Rebuild Credit Faster

While rebuilding credit takes time—and the timeline will vary based on the state of your credit—you can proactively accelerate the process by focusing on the areas of your credit profile that you can control.

Here are some practical ways to rebuild your credit faster:

Ensure accurate reporting: Make sure your credit report is correct by checking your credit score regularly and disputing any errors you find.
Pay on time, every time: Set up reminders or automatic payments to avoid missed payments.
Reduce credit card debt: Aggressively pay down balances to lower your credit utilization ratio.
Use secured credit cards: If you have limited or poor credit, use a secured card responsibly and pay it off each month.
Use credit sparingly: Make small purchases on credit cards that you can pay off immediately.
Keep old accounts open: Generally, don’t close older, well-managed credit accounts.
Report other payments: Explore services that report utility, phone, or streaming payments.

By consistently implementing these steps, you can demonstrate responsible credit behavior and work more efficiently towards a better credit score.

Remember that while these actions can help, the impact of past negative history discussed above will still influence the timeline. You can do these things to help improve the situation, but they’re not guaranteed to fix it completely.

Realistic Timelines for Credit Rebuilding

The time it takes to improve your credit score varies widely, but you can categorize the potential timelines based on your actions and your credit’s starting point.

Short-Term Improvements (Within 6 Months)

You might see noticeable improvements in your credit score within a few months by doing just a few of these things:

Correcting credit report errors: If inaccuracies are dragging down your score, disputing and correcting them can lead to a relatively quick boost.
Reducing credit utilization: Paying down high credit card balances can quickly positively impact your score.
Adding recent positive history: Establishing a positive payment record with a secured credit card or services like Experian Boost® (for rent and utilities) can show results within a few reporting cycles.

These “quick fixes” can make a small difference in the short term, but they won’t completely offset significant negative marks like bankruptcy.

Mid-term Improvements (1-2 Years)

For more substantial rebuilding, especially after some past credit issues, expect to see progress over a period of one to two years. You’ll have to be patient, but you will see progress in the long term by taking actions like the following:

Consistent on-time payments: While past missed payments linger, a sustained period of on-time payments demonstrates improved creditworthiness.
Building a solid history with secured cards: Diligently using and paying off secured cards can establish a positive track record over this timeframe.
Gradual improvement after maxing out credit cards: Even with consistent payments, recovering from a history of maxed-out cards takes time to show significant improvement.

When performed consistently, these actions can substantially impact your credit score, but you’ll have to be patient and responsible.

Long-term Rebuilding (Multiple Years)

Rebuilding credit after major events requires an even longer-term perspective. While these timelines can seem discouraging at first, it’s important to remember that the time will pass anyway, and there is light at the end of the tunnel.

Recovery after bankruptcy: After 7+ years, a bankruptcy will fall off your credit report.
Recovery after foreclosure: Expect the recovery process after a foreclosure to take at least 3 years.
Collections: While the impact lessens over time, accounts in collections can affect your score for several years, requiring consistent positive credit behavior to offset them.

As you can see, while many actions can impact your credit score, actual credit repair is a long-term project. Especially if you have significant marks on your credit, expect to commit to responsible credit management on a mid- to long-term basis.

Begin Working On Your Credit Today

Ultimately, there’s no magic solution for rebuilding credit overnight. The length of time it takes to rebuild credit depends significantly on the severity of past issues, your starting score, and, most importantly, the consistency of your positive financial actions.

All that said, it can be empowering to remember that you have control over many of these factors. By committing to responsible credit behavior, like consistent payments and reducing debt, you can steadily improve your creditworthiness and achieve your financial goals. Start monitoring your progress today by getting your free credit report card.

How Long It Takes to Rebuild Credit FAQ

How Long Does It Take To Rebuild Credit From 400?

Rebuilding credit from a score as low as 400 will likely take considerable time. While you might see some improvement within months by addressing immediate issues like delinquent accounts, reaching a good credit score will likely take several years.

How Long Does It Take to Rebuild Credit After Paying Off Debt?

Paying off debt can positively impact your credit score—mainly by lowering your credit utilization. While you might see some slight improvement within a few months, the overall time to rebuild your credit will also depend on factors like your payment history and the age of your accounts.