On average, credit repair takes three to six months. Your score should gradually improve throughout the process each time a creditor agrees to make a change in your favor. In general, credit repair takes three to six months to resolve all the disputes that the average consumer must file. Of course, if you just have to fix a few mistakes or repair your credit every year, it might not take that long; it might be over in just over a month.
On the other hand, if you've never corrected your credit and you have a lot of things to challenge, it may take longer. If you didn't make some credit card payments or applied for too many loans, your credit score may need to improve a little. Pay your debts when they're due, avoid using more than 30% of your available credit, and avoid making too many difficult credit inquiries in a short period of time. It's possible to go from a credit score of 500 to 700 in 6 to 18 months, but the results depend on how you approach your credit.
A conventional mortgage requires a credit score of 620, so you may not need to reach a credit score of 700 to get the financing you need. For example, if there is evidence of late payments on a personal loan, but your lender's records show that you've never stopped making a payment, you can contact the credit reporting company to challenge credit errors. If you pay for a credit repair service, the company will help you streamline so that you do it as quickly as possible. Each of the three major credit bureaus, Experian, Equifax and TransUnion, allows you to get a free copy of your credit report each year.
Consumers with bad credit can get good and great credit scores again, but it won't happen overnight. It can be a red flag for lenders if you open too many new credit accounts in a short time, especially if you don't have an extensive credit history. A low index may be better for your score than not using any credit at all because it shows that you know how to use credit responsibly. If you no longer use a credit card, you may have it inactive, as it contributes to your credit rating.
So, while the repair process may only take 3 to 6 months, the time needed to rebuild your credit may take longer. If you detect errors and challenge them with a credit agency, the other two will also update your credit report. So, stay on top of your payments to build a positive payment history and take steps to reduce your credit card debt burden so that your credit utilization rate is as low as possible. Because people often repair their credit with a specific objective in mind, such as buying a home or negotiating an interest rate with a creditor, it's important to know how long the process may take in order to plan effectively.