How Long Does It Take to Raise Your Credit Score?
May 14, 2021 | Mason Roberts
It would be nice if your credit score worked much like your bank account. If numbers go out, simply put numbers in. But there's more to your credit score than mere numbers.
The time it takes to raise your credit score depends on why it needs to be brought up. The good news is that you can boost your credit in a matter of months if your issues are minor matters, such as little or no credit history.
There will be more time involved if your credit score is low due to debt. And you'll have to arm yourself with great patience if your credit score is hurting because of missed payments or going through bankruptcy.
Depending on all involved factors, getting your credit looking spiffy again could take years.
How Long Does It Take to Raise Your Credit Score? It Depends on Where You're Starting.
Credit scores may seem arbitrary when you're on the outside looking in, but they're actually determined by a formula. That formula is made up of five different factors that can raise or lower your credit score:
- New Credit
- Credit Mix
- Length of Credit History
- Credit Utilization
- Payment History
The biggest card on the table is a history of consistent payments. This has more influence than any other factor. So much so, that owners of new credit cards have a great opportunity:
Every month that you pay your card's bill on time, your credit score will go up. If you set up a routine and don't miss payments, your creditworthiness can grow rapidly.
How much of your credit you use plays an important part as well. If you don't use more than 30% of your total credit limit, you stand the best chances of remaining in good standing. You'll come across all kinds of clever ways of increasing the credit available to you in order to reduce that ratio, but there's no substitute for paying off outstanding balances.
Now, let's look at length of credit history. All that really means is the average age of your credit accounts. The longer the account has been open, the better, so closing old accounts to keep yourself out of poor credit is not a good strategy.
There are times when canceling a credit card account is the right move, but this is the exception rather than the rule. You'll benefit from keeping those old accounts open, generally speaking.
Provided you can handle the payments, you can raise your credit score by adding new kinds of debt into your profile. These can be things like personal loans and auto loans.
This doesn't mean you should run out and apply for multiple credit sources all at once. However good your intentions, it doesn't look good from the standpoint of a credit issuer.
If you find yourself in the unfortunate position of someone that has missed credit card and/or loan payments, declared bankruptcy, defaulted on a loan, or had a loan turned over to a collection agency or any other major financial issue, you're looking at years of effort if you want to rebuild your credit.
The answer to "How long does it take to raise your credit score," is directly related to how long you can make consistent, timely payments each and every single month.
How Long Does it Take to Raise Your Credit Score? Here Are Time Estimates.
There's no simple formula. The time required to raise your credit score depends on a host of factors. Your financial habits, the reason the score is low in the first place, your current standing; these can give you a general idea of what to expect, but there's no specific recipe for putting together a timeline that will show you how soon you'll get where you want to be.
The following data is derived from studies by FICO and CNBC. It shows the typical time required to bounce your credit score back after a financial snag. Don't forget that these are estimates.
|Event||Average Credit Score Recovery Time|
|Home Foreclosure||3 years|
|Missed/Defaulted Payment||18 months|
|Late Mortgage Payment (30-90 Days)||9 months|
|Closing Credit Card Account||3 months|
|Maxed Credit Card Account||3 months|
|Applying For a New Credit Card||3 months|
Get An Auto Pawn While You Wait For Your Score To Improve
The Catch-22 of no credit can be similar to the Catch-22 of having bad credit. You can't build it if nobody will give you a chance to. There are some options. One of them is title pawning, specifically the kind offered by Georgia Auto Pawn, Inc.
Georgia Auto Pawn, Inc. welcomes applicants with all kinds of credit, good, bad, and ugly.
It's not advisable to use an auto pawn for trivial matters, but if you have a need for cash and a need to help rebuild your credit, Georgia Auto Pawn, Inc. may be the ticket to solving both problems.
Applying for an auto pawn is easy. You can get the process started either by calling or submitting an online form on our website. Approval is normally a speedy process, especially compared to the rigamarole of other kinds of loans. Here are the steps you need to take if you want to get started with Georgia Auto Pawn, Inc.:
- Call to your nearest Georgia Auto Pawn, Inc. store location or fill out and submit a short inquiry form located on the Main Page of our website. If you do the latter, wait for a phone call from our representative.
- Have a conversation with our representative and ask about anything that seems confusing. At this point, you will be also scheduled a meeting with a verification agent at the place that’s comfortable for you.
- Head over to the meeting with the required items in order: your driver’s license or state-issued I.D., a lien-free title to your vehicle, your vehicle for inspection.
- Let the agent verify your information, inspect your car to see if you qualify for the loan.
- If you do, sign a few more papers and drive back home in your own vehicle with cash in your wallet. The entire process can take as little as 30 minutes.
Submit Your Title Pawn Inquiry Today!
So how long does it take to raise your credit score? It depends. An auto pawn with Georgia Auto Pawns can help you while you wait for your score to improve, since it doesn't contact credit bureaus. You can pawn your car for cash and get the process started right now from the comfort of your own house by submitting a short inquiry form on our website – and receive the needed money within minutes!