Is your bad or poor credit giving you sleepless nights?
If yes, it’s likely that you have experienced first-hand the consequences of having bad credit. Maybe you’ve been denied a loan or a credit card or you’ve been charged a sky-high interest rate. Or perhaps a potential employer has told you that you can’t get a job you had applied for because of your credit.
There are many side effects of having bad credit, but instead of losing your sleep, you should be working on re-establishing good credit. If you’re already on it, thumbs up!
But how long is it going to take you to repair credit? Is it a short sprint or a long, winding marathon?
We have the complete scoop. Come with us and learn!
How Long Does It Take to Rebuild Good Credit?
You’re looking for an answer to this question, so it’s only fair that you get it quickly, right? Unfortunately, there’s no standard or fixed answer. The truth is it can take anywhere from a few months to a decade or longer to rebuild credit. It all depends on the state of your credit and what got it there in the first place.
To help you understand the credit rebuilding process, it’s key to flesh out the various factors that can affect how long it takes to take your credit from bad to good.
What Caused Your Credit to Fall?
There are many elements that can cause your credit score to drop. Some will cause a slight drop and others will result in a major fall.
For example, a misreported payment can cause your credit to drop by a few points. A hard check on your credit by a lender will have a similar effect.
On the other hand, a bankruptcy, car repossession, or foreclosure can cause your score to drop by more than 100 points. In this case, your credit score will take a big hit and can move from good to poor immediately.
What’s more, these events stay on your report for varying periods of time. A bankruptcy, for example, will stay on your report anywhere from 7 to 10 years. So, if your credit fell because you filed for bankruptcy, it can take several years for it to improve. You’ll see significant movement once the bankruptcy drops from your report.
If you have a clerical error on your report, such as an erroneous payment entry, the credit bureau will fix it after you raise a complaint. The error will disappear from your report soon after and you might see a slight credit score improvement, especially if the said error was responsible for a credit score drop.
Are You Using a Credit Repair Specialist?
You can rebuild credit on your own, but you can also use a credit repair service. Obviously, you’ll see better results when a credit repair specialist is helping you. These professionals know what it takes to fix bad credit scores.
Here’s a credit repair price list if you’re interested in hiring a pro.
Re-establishing Good Credit Takes Time
There really isn’t a quick fix for rebuilding good credit. Your credit is where it is likely because of bad financial mistakes. These mistakes can be rectified, but it can take several years for your efforts to reflect on your credit report. Nonetheless, hiring a credit repair specialist can help you achieve quicker results.
Stay tuned to our blog for more financial advice.