When you want to rebuild your credit, you might wonder how long it is going to take. Everyone’s credit situation is different, and you need a bit of time to ensure your credit is growing, repairing itself, or allowing negative items to drop. There are some tips below that will help you rebuild your credit, and each step will give you a chance to fix your credit in a few years. There is no exact timeline for credit repair, but you can create a better credit profile while spending these few years fixing your credit.
How Long Have Negative Items Been On Your Credit?
You may have negative items on your credit that are fairly recent. These items need to be paid off as soon as possible. However, negative items that are close to or older than seven years old should be left alone.
Negative items drop from your credit score after seven years, and it is pointless to try to pay them off. Let the items fall off when they reach the seven-year marker, and call the credit bureau to have them removed. Paying off something that is very old puts it back on your credit, and you will only add to the negative items that companies see when they check your credit.
Consolidate Your Debt
You can consolidate your debt if you would like to have a timeline for your credit repair. Consolidating your debt allows you to take out a loan, pay off all your old debts, and make one payment to the debt consolidation company. You can use a company like LendVia to get a loan when you really need. Plus, lenders like this use soft inquiries that do not impact your credit.
If you are paying off your debt consolidation loan, you will know about how long it will take to improve your credit. The negative items get older, but they are paid off. You are making payments on a new loan, and those payments make your credit look better. You need to be patient because your consolidation loan terms might vary. For example, if you spend five years repairing your credit, you will see your scores increase until your credit is almost perfect after five years. Plus, you will have no more debt.
You Need To Contact The Credit Bureaus
You may be at the mercy of the credit bureaus if they are not removing old items from your credit as they should. Because of this, it can be very hard for you to fix your credit. The credit bureau may need to open an investigation, and it could take months for them to come to a resolution.
You should check your credit often, and you should file a dispute any time you find something on your credit that should not be there. Plus, the credit bureaus may not help you. You might need to contact your creditors to make sure the file is updated properly.
Contact Your Creditors
When you are trying to pay off debt and fix your credit, you should get in touch with creditors who will update their reports on your credit. The credit bureau may not have updated your credit the way they were supposed to. However, the creditor can quite literally change what their portion of your credit report says.
Some companies will file a complaint with the credit bureau, but others will make the changes on their end. Check your credit report regularly to make sure that your report has changed. If your report has not changed, you should call your creditors again to let them know what the problem is. Your creditors do not want to be sued because they were improperly reporting to the credit bureau.
Taking Small Steps Makes A Difference
You may want to repair your credit because you were planning on buying a house or a car. Some lenders do not care about the progress you have made on your credit, but others will use your progress to offer you a loan. When you have taken out a car or home loan, you should print a credit report that shows how much your score has jumped over time. You might tell the lender that you have three more years until your debt consolidation is paid, and the lender will honor your hard work.
Now that you have a much larger loan on your credit, your score will rise faster. The impact of the car and home loans is massive if you can get one, and that is why you need to start by paying off new debts, using debt consolidation, and avoiding old debts.
You might want to talk to someone about how to manage your debt, how long it will take to pay off your debt, and how long it takes to repair your credit. There is no definitive timeline, but you can bring your credit back to a respectable score in a few years. Plus, getting new loans to pay for a house or car will help improve your credit even more once you have begun the process.