How long does it take to fix your credit?

Question

I ruined my credit 5 years ago coming out of high school with credit card bills and store credit cards. I was somewhat paying the minimum on some of them and was defaulted on others. This year I realized that I will never be able to get my own house until i get that fixed. I paid them all off one by one with large sums (settlement). How long before my credit scores goes up? Am I pretty much doomed for the next 20 years?

Answer 1

Most delinquencies last up to 7 years on your report. It's good that you paid them off, but the delinquencies will still show 7 years from the date of the last activity. So for example if the date of last activity on a credit card was June 16, 2003 it would be eligible to fall off June 16, 2010. Now having said that, your 35% of your score is comprised of payment history.

Now there's an option to fix that. What you can do is ask a close friend or family member with excellent credit to add you as an authorized user, but you don't get a card. This would be for reporting purposes only. It would add their payment history to yours, possibly boosting your score. You would need to make sure that if you are indeed added, that their account is added to your report.

Make sure that you don't accumulate any more debt. 30% of your score is comprised of how much you owe. This will be important if you're added as an authorized user, the balance due will reflect as yours too. So it's important to keep it as low as possible.

If the delinquent credit card are closed, what you might want to do is open up one secured credit card. Granted you will have to put a deposit upfront to secure a line of credit, but you can set your own limit that way. You can start off with the minimum (usually $200-300) and work your way up every couple of months or so. Another piece of advice is to make small purchases that can be paid off in full, on time, every month. After a year of perfect payment history, you should get the deposit back with some interest, and the credit line that you built while your were making those deposits will become unsecured. And the higher the limit the better, becuase it looks better on your report when you have a high limit because it shows that you could be trusted with high limits.

Another thing is to not apply for too much credit. Inquiries amke up 10% of your score and each time that you apply and your credit is pulled, that's 2-3 points each time. You apply at 5 places, that could be up to 15 points right there.

One more thing is if you're paying regular monthly bills on time like rent, utilities, cable, cell phone, phone, etc. You can enroll in this CRA (consumer reporting agency) called PRBC. They score your verified payments in a report that can be considered along with your traditional credit reports. This DEFINITELY can help in the future when you're looking to buy a house. (Below,I've posted the link to their website for you to check out)

Also, I posted links to wells fargo and bank of americas's secured cards as well

Good luck!

Answer 2

First find out what your credit score is. Next to build credit back up you need to have credit. Apply for a new credit card and begin making small purchases, but only ones you can pay off each month. Slowly do this over a year and then check your credit score again. You should be able to bring it back up within about 16 months. Be sure you are NOT late on any payments.

Answer 3

5 years ago...
If you payed then off like you said you did, and you have a good job, and have no debts, Then you should be able to be approved for any home loan.
The biggest thing any Credit company wants to know is: Do you have the ablity to pay.
20 years, NO!! Getting a new house, Credit rating will soar when you get a house.
Once you get that house, Beware the flood of credit cards that will fill your mail box. Just toss them in the trash!!
I did a BANKRUPTCY (big credit no no) but 7 years later, (and now I own a house) I have zillions of credit card companys that want my business... But im smart. I took to companys/cards. One I never use, and the other just to buy food items every month, and then pay off each month. (keeps my credit score sweet)
Also beware of any credit companys offering you there card for a fee, means they dont trust you.

Answer 4

about 7 to 10 years

Answer 5

Collections can stay on your report for up to 7 years.

But you can still improve you score with paying all your bills timley. Perpahs it will take a several years to get your score up to a really good number, but you can get it to a respectable number with hard work in as little as one or 2 years.

My fiance hurt her score post college, allowing bills to go into collection, but has gotten her score up into the mid 600s in just over 1 year. So it can be done.

Answer 6

The items will only stay on your credit for 7 years from the date of the last activity. Check out our website. We might be able to help. www.jcwilliamscreditservice.com

Answer 7

Its good that u paid your bills and it takes 7 years before they get removed from your credit report. and now just make sure u keep up with your payments..