How Long Does it Take For Your Credit Score to Rise?

How long it takes to raise your score

The length of time it takes to raise your credit score depends on a combination of multiple aspects. Your financial habits, the initial cause of the low score and where you currently stand are all major ingredients, but there’s no exact recipe to determine the timeline. Thanks to studies done by CNBC and FICO, we’ve compiled the typical time it takes to bring your score back to its starting point after a financial mishap. The following data is an estimate of recovery time for those with poor to fair credit.

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


Does paying off collections boost my credit score?

Historically, paying off your collections does not improve your credit score because a collection stays on your report for seven years. Newer ways of calculating credit scores no longer count collections against you once they have a zero balance, but it is not possible for you to predict which method your lender will use to calculate your score.

4. Limits Your Requests for New Credit—and the Hard Inquiries with Them

There are two types of inquiries into your credit history, often referred to as hard and soft inquiries. A typical soft inquiry might include you checking your own credit, giving a potential employer permission to check your credit, checks performed by financial institutions with which you already do business, and credit card companies that check your file to determine if they want to send you pre-approved credit offers. Soft inquiries will not affect your credit score.

Hard inquiries, however, can affect your credit score—adversely—for anywhere from a few months to two years. Hard inquiries can include applications for a new credit card, a mortgage, an auto loan, or some other form of new credit. The occasional hard inquiry is unlikely to have much of an effect. But many of them in a short period of time can damage your credit score. Banks could take it to mean that you need money because you’re facing financial difficulties and are therefore a bigger risk. If you are trying to raise your credit score, avoid applying for new credit for a while.

Does avoiding hard inquiries raise your credit score?

Yes, having hard inquiries removed from your report will boost your credit score—but not drastically so. Recent hard inquiries only account for 10% of your overall score rating. If you have erroneous inquiries, you should try to have them removed, but this step won’t make a huge difference by itself.

Why Does It Take Time To Build Excellent Credit?

When you are just starting to build a credit score, time doesn’t work in your favor. Lenders want to see good behavior over time, which is much of what FICO scores take into account:  

  1. Payment history (35% of score): Have you made on-time payments consistently?
  2. Amounts owed (30% of score): How much debt do you have compared to how much available credit you have?
  3. Length of credit history (15% of score): On average, how long have your accounts been open?
  4. New credit (10% of score): Have you opened several new credit accounts in a short amount of time?
  5. Credit mix (10% of score): Do you have experience managing different types of credit and loan?

Proof that you make payments on time and don’t carry large balances on credit cards makes you a less risky, more trustworthy credit user in the eyes of lenders. Those responsible behaviors carry more weight when demonstrated over time, too, which is why building a good credit score from scratch doesn’t happen overnight.

Best Ways to Improve Your Credit Score

The most important thing you can do to improve your credit score is to make all of your payments on time. Maintaining low balances relative to your total limits—especially for credit cards—is another crucial thing you can do to improve your credit score. Together, these two factors—payment history and credit usage—account for 65% of your score.

An easy way to avoid late payments is to sign up for autopay on all of your bills. It can be tough to keep track of multiple bills due at varying times manually pay every month. Autopay can remove that friction and you’ll never have to worry about a late payment. Just be sure that you have enough in your bank account to cover the automatic payment each; otherwise, it will count as a negative mark, which is what you’re trying to avoid in the first place.

The bottom line about building credit fast

When you’re working to fix your credit, it takes good behavior over time. However, lowering your utilization rate by paying down existing debt, getting a new credit card or requesting a credit line increase on an existing card can provide the quickest credit score boost.

Any late payments and debts sent to collection should be handled promptly — otherwise, they’ll just cause more pain once they hit your credit reports. It’s also wise to review your credit reports on a regular basis. in order to spot errors that might be dragging down your credit score.

Knowing what actions to take that can help improve your credit score and being a responsible borrower can boost your chances of increasing your credit score by 100 points or even more.

Five levels of credit scores

Now that you know what goes into your score, let’s take a look at what lenders consider a good score and a bad score. The FICO scoring ranges are as follows: 

  • Very poor: 300-500 points. Obtaining a credit card or loan with bad credit is more challenging. 
  • Fair: 580-669 points. Lenders consider borrowers with a “fair” score to be higher risk. You may be able to find a loan or credit card with a fair score, but you’ll pay more in interest.
  • Good: 670-739 points. You’re a much more appealing candidate for loans and cards if you have a credit score in this range.
  • Very good: 740-799 points. You’ll get better rates from lenders If you have a “very good” score.
  • Exceptional: 800-850 points. Lenders see people with exceptional credit scores as very dependable borrowers. An exceptional score means you’ll get the best interest rates available and exclusive credit card offers.

The maximum credit score that you can have is 850. Perfect scores are very rare but with patience and a plan, it’s not impossible to make it into the perfect credit club with time.

How Quickly Does Your Credit Score Update?

Unlike a lot of financial metrics, your credit score doesn’t tick away silently in the background, changing without your knowledge. Instead, it’s recalculated each time you or a business requests it. If you request it often, it’ll update more frequently. Most popular free credit score websites request this information every month; that way, you get a new score update every 30 days.

It also depends on how often the companies you do business with report your information. For example, if your credit card company doesn’t report your payments until the end of the month, you won’t see the impact of your payments on your credit score until then, even if you pay it off at the beginning of the month.

Add utility and phone payments to your credit report

Typically, payments such as utility and cellphone bills won’t be reported to the credit bureaus, unless you default on them. However, Experian offers a free online tool called Experian Boost, aimed at helping those with low credit scores or thin credit files build credit history. With it, you may be able to get credit for paying your utilities and phone bill — even your Netflix subscription — on time.

Note that using Experian Boost will improve your credit score generated from Experian data. However, if a lender is looking at your score generated from Equifax or TransUnion data, the additional sources of payment history won’t be taken into account.

There are also services that allow rent payments to be reported to one or more of the credit bureaus, but they may charge a fee. For example, RentReporters feeds your rental history to TransUnion and Equifax; however, there’s a $94.95 setup fee and a $9.95 monthly fee.

How much will this action impact your credit score?

The average consumer saw their FICO Score 8 increase by 12 points using Experian Boost, according to Experian.

When it comes to getting your rent reported, some RentReporters customers have seen their credit scores improve by 35 to 50 points in as few as 10 days, according to the company.

What credit score do you start with?

You don't start with any credit score, and you won't get a score until you open a credit account that reports to the credit bureaus. Once you open an account, you will receive a score based on that account. It probably won't be the best score since you don't have a long enough credit history, but it won't be the worst score, either.

How Long Do Derogatory Marks Stay on Your Credit Report?

No one’s perfect, and that’s very clear when you’re dealing with credit scores and credit reports. Your credit report is a history of how you’ve handled credit in the past. If you’ve made mistakes, such as late or missed payments, those will stay on your credit report for a long time. But just how long depends on the type of derogatory mark: 

  • Late payments: Because lenders usually report to the bureaus every 30 to 45 days (roughly), you may have a small window of time after missing a payment to make it up before it appears on your report. But once a late payment is on your report, it will stay for seven years from the original delinquency date.
  • Collection accounts: If you have an account that is sent to collections, the account will remain on your credit report until seven years after your initial missed payment that led to the account ending up in collections. 
  • Bankruptcies: Depending on the type of bankruptcy you declared, it will remain on your credit report for seven to 10 years. 
  • Other negatives: Other derogatory marks, such as repossession, will typically stay on your credit report for seven years from the date of the first payment you missed. 

How Long Does It Take to Improve Your Credit Scores?

How long it takes to improve your credit scores depends on where you’re starting and how you got there. 

For example, building credit from scratch may take less time than rebuilding credit. Recovering from a few recent credit inquiries might not take as long as working back from bankruptcy. And going from poor to excellent credit scores may take longer than going from good to excellent scores.

Understand How Credit Scores Are Calculated to Build or Improve Yours

Credit-scoring companies use different formulas, or models, to calculate credit scores. And there are many different credit scores and scoring models. That means people have more than one score out there. According to the CFPB, some of the most commonly used credit scores come from VantageScore and FICO. And their credit scores are based on information from your credit reports. 

But what information is actually used to calculate your scores? Here are some of the factors, according to the CFPB:

  • Payment history
  • Current debt
  • Credit utilization
  • Type and number of loans
  • The age of your credit accounts
  • New credit applications

Credit Scores Are Not Part of a Credit Report

Credit scores are a tool to help determine the risk of lending to a person. They are calculated using the information from your credit report, but they are not part of your credit report. You will not see a credit score when you get your credit report, but a credit score may be included with your credit report in some cases.

There are a number of ways to request your credit scores. You can view your free credit score from Experian online. When you get a credit score from Experian, you will also get a list of the risk factors that explain what information in your credit report most affected the score you received. These factors empower you to take action to improve your scores over time by addressing the issues they describe.

Improve your credit faster with MoneyLion

You won’t see results overnight when you’re working to improve your credit score. Remember to always pay on time, never max out credit cards, and be patient. Think of improving your score the same way as losing weight. You won’t lose ten pounds after a single day or even a week of eating right and exercising. Your credit score works the same way, it takes a pattern of positive habits to see results. Although building credit can be a slow process, having an above-average score can guarantee you will get better rates on credit cards, mortgages, auto loans, and more. 

Want to take action to boost your score? Sign up for the Credit Builder Plus membership today and let MoneyLion help you create a healthy financial footprint. It’s time to take control of your finances, boost your credit score and get the cash you need!

How long will it take to raise my credit score? 70% of Credit Builder Plus users saw an increase of 60 points within 60 days of having their loan. To raise your credit by 200 points, it might take several months of monitoring and building your credit profile. Fifteen percent of your credit score is based on the length of time you have had open lines of credit. Although building credit can be a slow process, having an above-average credit score can guarantee you will get better rates on credit cards, mortgages, auto loans, and more. What are the biggest factors to improve my score? There are 5 key factors that make up your credit score. 1. Payment history (35%) 2. Credit utilization (30%) 3. Length of your credit history (15%) 4. Credit mix (10%) 5. New credit inquiries (10%) Why is my score different on different credit bureaus? Depending on what type of loan you are applying for, the lender has the option to use many different companies that access risk. Some of the most used bureaus are FICO, Experian, TransUnion, and Equifax. Each bureau assesses your payment history, credit utilization, credit history, credit mix, and inquires at a different weight thus a slight deviation in score from each company. Lenders also have the choice to report to their preferred credit bureau(s) which can affect your credit score either positively or negatively.