Key takeaways
- Improving your credit score takes time and regular payments. If you’re starting with no credit, you might see improvements in a few months. However, fixing serious issues like bankruptcy can take over six years.
- FICO scores are based on payment history (35%), credit utilization (30%), length of credit history (15%), new credit (10%), and credit mix (10%).
- To improve your credit, make timely payments, keep balances low, dispute errors, limit new credit applications, maintain old accounts, and report rent and utility payments to credit bureaus.
- Credit repair services can help with errors and complex issues.
How fast can you raise your credit score? If you’re looking to make a large purchase or qualify for a credit card or loan, you may find yourself asking this question. While there is no one-size-fits-all answer, there are practical steps you can take to boost your credit score.
The amount of time it takes to improve your credit score depends on the reason it’s low in the first place. It helps to know how credit scores are calculated, when negative items fall off your credit report and how to build credit.
How credit scores are calculated
Before you determine how long it will take to raise your credit score, you need some foundational knowledge. You’ll want to be familiar with how your credit scores are calculated. Most lenders use FICO scores to determine consumer creditworthiness.
FICO scores are made up of five elements:
- Your history of on-time payments is the most important and makes up 35 percent of your score.
- Credit utilization ratio (the ratio of credit used vs. total available credit) is almost as important as payment history and makes up 30 percent of your score.
- Length of credit history (the average age of your accounts) is important, but not critical, and makes up 15 percent of your score.
- New credit is less important but still makes up 10 percent of your score.
- Credit mix, similarly, makes up the final 10 percent of your score.
In general, you should always pay your bills on time to maintain a positive payment history. Keep your credit card balances below 30 percent of your credit limits. Avoid closing old credit accounts, when possible, to preserve the length of your credit history.
Limit new credit applications to avoid multiple hard inquiries. Diversifying your credit types, like having both installment loans and revolving credit, will help boost your credit mix.
How long it takes to increase your credit score
How long your score will take to improve depends on where you stand in the credit-building journey.
No or limited credit history
If you have no credit history, you won’t have a credit score — this is not like a low credit score, which comes from a limited history or negative reports.
Limited credit history can impact a significant portion of your credit score and takes time to build through responsible use.
If you have no credit to speak of, you may be able to increase your score within a few months. In this case, you may want to learn how to build credit.
Negative marks on your credit history
However, if you have complex derogatory marks on your credit report, credit repair can take longer. If that’s where you are, explore your credit repair options and learn how they work.
Derogatory marks like card delinquency and bankruptcy, impact your score for years. This situation requires credit repair or waiting for negative items to fall off your report.
Most derogatory items stay on your credit report for seven years. However, some bankruptcies can remain for up to 10 years.
| Event | Average time on credit report |
|---|---|
| Late payments | 7 years |
| Foreclosures | 7 years |
| Debt collections | Up to 7 years |
| Chapter 13 bankruptcy | 7 years |
| Chapter 7 bankruptcy | 10 years |
Although this may sound alarming, there’s good news: The effect of negative on your credit report diminishes over time, and recent positive credit behaviors will gradually improve your score.
You may begin seeing credit score improvements in as little as a few months after a negative event. However, fully recovering from bankruptcy may take more than six years.
| Event | Average credit score recovery time |
|---|---|
| Bankruptcy | 6+ years |
| Home foreclosure | 3 years |
| Missed/defaulted payment | 18 months |
| Late mortgage payment (30 to 90 days) | 9 months |
| Closing credit card account | 3 months |
| Maxed credit card account | 3 months |
| Applying for a new credit card | 3 months |
If things seem to be affecting you beyond the typical time they should, see if you can remove old items from your credit report.
How to raise your credit score (quickly)
Boosting your credit score is possible through several short-term actions. When you apply these tips, you could see improvements to your scores in a short period.
1. Make on-time payments on all accounts
Making timely payments is crucial. This is especially beneficial if you have a limited credit history, as it demonstrates your reliability.
Consistently paying your bills on time helps build a positive credit history. You could also explore tactics to lower debt.
2. Use a secured credit card
A secured credit card is useful for those with limited credit history or a low score. It requires a deposit, which typically equals your credit limit. Responsible use of a secured card can help build your credit history and improve your score over time.
3. Improve your credit utilization
One of the quickest ways to boost your credit score is to get to an ideal credit ratio, which makes up almost one-third of your credit score. The ideal credit utilization ratio is less than 30–33 percent, depending on the scoring model.
You can improve your credit utilization with several strategies:
- Become an authorized user: When you become an authorized user on someone else’s credit card, you’ll enhance your credit history and utilization (as long as the account is in good standing). However, the account must report to the major credit bureaus for this to improve your credit score.
- Increase your credit limit(s): Asking for a higher credit limit on revolving debt can help improve your ratio, as long as you don’t increase your spending.
- Open a new credit account: Adding a new credit account to your credit file can lower your overall credit utilization. Just make sure to manage your accounts carefully. Note that applying for a new account can temporarily lower your score by a few points.
- Pay down debt: Lowering revolving account balances decreases your credit utilization ratio.
4. Remove incorrect or negative information
Removing incorrect or negative items from your credit report can also improve your credit score.
In short, check your credit reports for errors or outdated information. Then, dispute any inaccuracies with the credit bureaus.
Once negative items are gone, your score can go up within the next reporting cycle.
5. Minimize credit inquiries
Your score can be temporarily affected each time you apply for new credit. In most cases, it will drop two or three points when you apply for a new account and the lender makes a hard inquiry into your credit.
Research your options before applying to avoid unnecessary hits to your credit score. Services like CardMatch™ can help you find pre-qualified credit card offers without impacting your score.
6. Maintain old credit accounts
Keeping old credit accounts open can benefit your credit score because the length of your credit history contributes to scoring. Maintaining older accounts helps demonstrate a longer credit history, so it’s often best not to close accounts even if you’re not using them regularly.
7. Get rent and utility payments reported
Timely rent and utility payments reported to credit bureaus can positively affect your credit score. If your landlord or utility provider does not report these payments, consider using alternative reporting services like Experian Boost to include these accounts in your credit history.
8. Enlist a credit repair service
If you want an expert to help you increase your score, and your goal is to repair a credit report with negative items, you can explore reputable credit repair services.
Credit repair services can help improve your score by disputing errors on your credit report with the bureaus. While you can handle this for free, these services save time if you’re busy or need help.
Debt relief companies offer debt consolidation to help manage your debt and improve your score, but beware of high interest rates if you seek consolidation loans on your own. To be sure you make the right decision for your situation, explore alternatives to debt relief.
The bottom line
When dealing with a low credit score, the best time to start is now. By making on-time payments and carefully reviewing your financial situation, you’ll set yourself on the path to stronger credit.
Financial recovery can take time, sometimes years, but being proactive is crucial for long-term improvement. Your credit score — and your financial opportunities — will benefit from your efforts.
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