Even if you have a seriously damaged credit history, you can raise your score to the excellent range in a few years. The time it takes to increase your FICO credit score to that level depends on your past credit history, and how fast the credit agencies process your data. Even though it takes weeks to update a credit score, you can start building your credit immediately.
Identification
Credit rating bureaus update their databases whenever they receive information from creditors. The major credit rating agencies update accounts every month, but it can take up to 90 days before new data appears on your report, according to Bills.com. Thus, you should only have credit accounts with lenders that report information to the credit rating agencies.
Time Frame
Your credit score starts increasing whenever positive information enters your credit history. It will probably take six months before you start seeing drastic improvement in your score. The more negative, and serious items you have on your credit history, the longer it takes to raise your score. If you have a bankruptcy, it usually takes at least two years before you can get credit at reasonable rates.
Potential
Eventually, all negative items leave your credit report and don't factor into your score. Most red flags, such as late payments, stay for seven years, according to Experian. Some bankruptcy filings, such as Chapter 7, affect your credit score for ten years, and tax liens can stick for up to 16 years.
Pay Off Debt
BankRate suggests that the first thing to do is check your credit report and look for errors. The best action you can take, after correcting errors, is to pay off as much credit card debt possible. Don't close unused accounts, or those with a balance. Closing accounts just reduces the proportion of debt you use, compared to that which you have available.
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