Chasing your credit score from a very low 500 to a good credit score of 700 is not an easy thing to do. However, it is feasible if some guidelines are adopted. Here are the time frames that it is likely to take before upgrading from 500 credit score to 700.
Where Do You Start?
The first step anticipated for any person should be to obtain his or her credit reports from AnnualCreditReport.com and scrutinize them. This enables you to precisely know what is pushing down your score – payment delays, collections, and bankruptcy among others Knowing the details and root causes of some of these issues is very crucial in the process of enhancing the current status.
It would help you to identify what negative items are affecting your reports, and you can begin devising a strategy on how to increase your score. It will also include credit repair in terms of correcting old credit problems and positive entry in terms of putting in fresh positive information that will counter the negative information. Planning is good for success because having a strategy and timeline in place helps a person see success.
Length is an important aspect: How Long Does It Take?
It is important to note that rebuilding an extreme credit rating is a long-term task that can hardly be completed in a short period. Generally, it may take some people approximately 2 years of practice and effort to transform from the range of 500 up to over 700 range. This average has been arrived at through a survey and with recommendations from credit specialists. However, the time taken may differ depending on the conditions of individual people, and the effort that is exercised towards it.
If you have the discipline to manage your credit responsibly and keep up with the positive credit activities, you should be able to raise your score from the 500s to 600s, at least, in the first 12 months of the credit repair process. To get an extra 100+ point increase to rise above 700 it may take another year after that if one continues to maintain good credit hygiene.
Key Action Steps
Here are the key steps recommended to boost from 500 to 700 over a realistic two-year timeline:
Year 1:
Pay any outstanding balances for any accounts that may be overdue.
Insert payment plans for accounts on collections or charge-offs- Deny late pay or other issues if they are not correct
If possible, get a spouse or a family member’s old card and become an authorized user on that particular card.
I suggest you open a new secured card and follow the right usage of the card that has been provided to you.
It is also important to control the number of credit applications.
It helps to pay all the bills early or at least meet the due dates exactly.
Year 2:
Maintain good credit standing or keep on with the right practices of paying the bills.
Approach the suppliers and request for an increase in the credit line.
The credit utilization of the cards must be low
It is also important that more time is allowed to elapse before amending a negative mark.
One may also need to include another completely new credit account.
It means checking the credit reports to see if there is any new problem that has cropped up.
Practice good financial hygiene through regular hard work and proper management of finances.
What obstacles are you experiencing that slow your process to reach 700?
It is very hard to increase one's rating from the 500s to over the 700s within one and a half years. This is because credit scores have two primary determinants: payment history and the age of your credit history, both of which cannot be easily fixed or improved overnight. No matter how clean your credit activities may be in the future, these serious negatives will remain staining on your credit reports.
The closer you get to that number 700, the greater the possibility that a blunder will cost you too. Also, most scoring models extend very high scores to people, who do not have the activity in credit history for at least three years. This is because raising a low score requires that you be patient and persistent. However, if one will consistently follows the proper behavior, then getting a 700+ is possible.
The Takeaway
It takes approximately two years for a credit score to move from a very poor 500 to of a prime 700 and above if one is determined to embrace positive credit habits. In the first twelve months, it is more of correcting errors and tidying up the reports. Year two is one where existing good habits are maintained and scores rise to meet the new better condition. It is important to remain patient and not open any new subjects. However, with patience and the willingness to do things right, having a 700 credit score is very possible.
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