How Long It Actually Takes To Rebuild A Bad Credit Score, Even With Perfect Payments

It may have all started with just forgetting a bill due date, or perhaps you've been only making the minimum payments on your credit card since the total balance is higher than what you're comfortable with. Regardless, it is surprisingly easy to find yourself with a low credit score. Recognizing that and deciding to take steps to rebuild it is a crucial first step, but you aren't going to turn it all around overnight. Consistently making payments on time and working to pay off debt is the way to a good credit score and other credit milestones that could change your life, but if you're wondering just how long it takes to rebuild a bad one, it can take anywhere from months to years. You can still see meaningful improvement within a year or two, but depending on how damaged your credit is and what caused it, a full recovery may take several years.

But before diving further into that, it's important to understand what a "bad" credit score is. Per FICO standards (which is what most top lenders use), a poor score falls below 580, while fair falls between 580 and 669. For better lender options, aim for a score of at least 670 or higher. If you look at your own credit score report, you may also see comparisons showing how you stack up against others in your age group. Keep in mind though that even if you aren't behind the average credit score for your age, it may still be worth taking the time to improve.

The biggest factors affecting your score include your payment history, the amount you owe, your mix of credit, the number of accounts you have, and how recently you've opened new ones. However, it's the details within each that dictate how long it'll take to build your score up. Per TransUnion, for example, a late payment is only likely to go on your credit report if you miss the deadline by 30 days or more. If you have a long history of doing this, that's a lot of reports impacting your score. Likewise, both missed payments and collections can remain on your report for seven years, so while your score can improve during that time through better financial habits, those negative marks won't disappear immediately. Similar circumstances apply to bankruptcies, which remain on your credit report for between seven and 10 years, depending on the specific type and filing date.

That's why someone with a 400 credit score caused primarily by maxed-out credit cards may recover faster by paying down those balances, while someone dealing with collections or a bankruptcy is likely facing a much longer road to recovery. Improving your credit score requires patience, and the frustrating truth is that it can be damaged much faster than it can be improved. After all, a credit report is designed to reflect your overall financial responsibility, not just your recent behavior.