How Long Does It Take to Rebuild a Credit Score?

Get Your Credit Score

Find out what is on your credit report. There are three major credit reporting agencies, and you are entitled to a free report from each of them every year. It can take between 3 and 7 years to repair your credit score, and a bankruptcy will stay on your credit report for 10 years. The three major reporting agencies are Experian, Equifax, and TransUnion. You can view your reports online or print them out. Be sure to record the report number so you can access them for free if you need to do so.

Document and Dispute

Review your credit report, and document and dispute anything that is wrong. Make sure there are no mistakes and that the report is a good representation of your credit history. The credit reporting bureaus provide information and links for you to use to dispute any inaccurate information on your credit report.
To dispute errors, you must send the credit reporting bureau a letter indicating what you are disputing and why. This must be accompanied by supporting documentation such as statements showing a disputed bill was paid. Make sure you send copies, not originals, of your supporting documentation.

Be on Time

Make your payments on time, every month. While late payments, charge offs and bankruptcy stay on your credit report for 3 to 10 years, the main thing lenders look at is your current activity. If you pay your bills on time, your credit score will start moving back up.

Pay Credit Card Balances Down

Try to pay off your credit cards or reduce the balances significantly. One thing credit agencies look at is the ratio of available credit versus used credit. The wider the gap between what you owe and how much you can borrow, the better your score will be. Shoot for using no more than 30 percent of your available credit.

Use Your Cards Carefully

Spread your spending over several cards, especially cards that you've had for a long time. Credit bureaus like to see that you've had some of your cards for several years. Even if you seldom use a card, be sure to use it once in awhile for a small purchase, and then pay the balance off immediately. Don't max out your cards, as this is a red flag for the credit bureaus, even if you pay off the balance in full. The bureaus don't look at your payments but at your monthly balance. If your cards are always maxed out, they assume you are struggling to make the payments.

Applying for New Credit

Don't be tempted by those "You are already approved" ads. The more often you apply for credit, especially if you are denied, the more likely it is that your credit score will slip. Be particularly careful about applying for several new accounts over a short period of time.