How Long Do Negative Credit Scores Affect Your Credit?

Far too often people focus more on their numerical credit score than the root cause of their problems: a bad credit history. As long as you have a bad credit history, you probably will have a poor credit score. Because repairing a bad credit history does not happen over night, you must start the repair process as soon as possible.

Identification

Credit scores are the result of a poor credit history. Because credit scores vary depending on which credit rating scale a credit reporting firm uses, some lenders only look at items on your report, such as missed payments. However, credit scores are important for setting interest rates for many creditors, so it pays to know your range of scores. When you have a score lower than 600 to 620, you will have a much harder time acquiring loans than someone with at least average credit.

Considerations

Over time, credit scores recover on their own. Even if you have a perfect payment history starting today, you probably will not see any appreciable difference in your score for at least 30 to 90 days. Keep adding positive data to your credit history, such as an on-time payment or paying off a loan completely, and your score should eventually improve. At the very least, all negative items will leave your report within 10 years, and seven years for most items.

Getting Credit with a Bad Score

A low credit score and bad credit history does not necessarily stop you from acquiring new accounts. Some lenders have a reputation for having low credit requirements. Secured credit cards -- cards backed by a deposit -- and retail or gas card accounts rarely require anything other than a job and bank account. These accounts also tend to carry high interest rates and fees, so you should only use these types of accounts until you raise your credit score and qualify for a less expensive loan.

Tip

It always pays to try to boost your credit score by paying down debt and sending monthly payments to the creditor on time. You should also pull a personal report free via Annual Credit Report to find out why you might constantly face rejection from creditors. For example, missing payments can lower a score several dozen points and a 90-day late payment is almost as bad as bankruptcy.