Rebuilding Your Credit Score
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If you have bad credit and have decided to rebuild your credit, you are undoubtedly eager to do so quickly.
However, while it is certainly possible to greatly improve your credit, it is not going to happen overnight.
One of the most important things to know is that ANYONE promising you that they can rebuild your credit quickly is lying to you and is attempting to get you to pay them a hefty fee.
"Quick credit fix" counselors offer dangerous advice, such as the advice to form a corporation so that you can get an Employer Identification Number and use that instead of a social security number, thus hiding your bad credit history. Important tip: that is illegal. You could potentially be charged with fraud.
The only way to rebuild your credit is to: 1.) work out a budget, 2.) contact your creditors and work out a repayment plan with them if possible and 3.) Make those payments your top priority and pay them off on time every month.
That's it; there is no magic fix. The credit scoring agencies want to see that you pay your bills on time regularly, not for a month or two, but every single month, before your credit score will improve.
Also, don't apply for new credit while you are paying off your bills unless you absolutely have to, because FICO, the credit scoring company, sees that as taking on new debt, which hurts your credit score.
So how long should it take you to rebuild your credit?
Well, late payments remain on your credit history for seven years, and bankruptcy for up to ten years, but don't despair. Even a few months of paying your bills on time will cause your credit score to rise. There is no hard and fast answer as to how long it will take, because everyone's financial situation is different, but you will see slow, steady improvement in your credit score as time goes on.
If you have bad credit and have decided to rebuild your credit, you are undoubtedly eager to do so quickly.
However, while it is certainly possible to greatly improve your credit, it is not going to happen overnight.
One of the most important things to know is that ANYONE promising you that they can rebuild your credit quickly is lying to you and is attempting to get you to pay them a hefty fee.
"Quick credit fix" counselors offer dangerous advice, such as the advice to form a corporation so that you can get an Employer Identification Number and use that instead of a social security number, thus hiding your bad credit history. Important tip: that is illegal. You could potentially be charged with fraud.
The only way to rebuild your credit is to: 1.) work out a budget, 2.) contact your creditors and work out a repayment plan with them if possible and 3.) Make those payments your top priority and pay them off on time every month.
That's it; there is no magic fix. The credit scoring agencies want to see that you pay your bills on time regularly, not for a month or two, but every single month, before your credit score will improve.
Also, don't apply for new credit while you are paying off your bills unless you absolutely have to, because FICO, the credit scoring company, sees that as taking on new debt, which hurts your credit score.
So how long should it take you to rebuild your credit?
Well, late payments remain on your credit history for seven years, and bankruptcy for up to ten years, but don't despair. Even a few months of paying your bills on time will cause your credit score to rise. There is no hard and fast answer as to how long it will take, because everyone's financial situation is different, but you will see slow, steady improvement in your credit score as time goes on.
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