How long will it take me to rebuild bad credit?
Sponsored Links
Rebuilding credit is something that is very possible and very important for you to undertake because your future depends on your credit rating. As for how long rebuilding your credit takes, it entirely depends on how quickly you can rectify credit issues and what sort of credit issues you have.
Many say that you can have your credit rebuilt in just a couple of years, but this depends on how long the debt has been on your credit report. For example, defaults will stay on your credit report for a period of 5 years. Even enquiries will remain on your credit report for a 5 year period. However, enquiries are not as severe as an overdue account that has been listed in default.
If you have an overdue account that has been listed as a clearout, which is when the creditor has tried everything to locate you and they have been unsuccessful, you will have to deal with that being on your report for 7 years. This is something that is not looked favorably upon by creditors. Many, the moment they see this, will give the application no further consideration. This could, in fact, have a more negative impact than if the creditor sees a bankruptcy, which also remains on your credit report for 7 years.
However, delinquent accounts can be brought current and kept current for a while and that will look good in the eyes of a creditor. This will also improve your credit rating. As for when and if a creditor will extend you credit, this depends on the creditor themselves. One may accept a certain credit score as good, while another may frown on the same score. The idea is to try and get your score as high as possible, even if you do have defaults and bankruptcies on your file. When you show regular payments on your other accounts and your score increases, you can have fairly decent credit in just a couple of years. That means you'll be able to acquire cars and other loans to get those things you need.
Just keep in mind that you may have to face an interest rate that is a little higher than someone who doesn't have defaults, bankruptcies, etc. on their credit reports. This may be another reason to continue to work on your credit. As you work on it, all it is going to do is get better. You can work on your credit by making your payments early, paying off any charges on credit cards as you make them, and by simply making sure you don't use too much of your available credit. All of these things will make your credit rating higher.
Other Question Categories
|
Credit Card Comparison