If you want to rebuild credit fast, focus first on the problems that have the biggest effect on your credit score. An inaccurate late payment, high credit card balances, or an account that doesn’t belong to you may give you a clear place to start.
There’s no guaranteed way to raise your credit score by a set number of points within a certain number of days. Some credit changes can show results much faster than others, though. The key is to find what’s hurting your credit score and address those problems in the right order.
Here are eight steps that can help.
How Long Does It Take to Rebuild Credit?
The time it takes to rebuild credit depends on what appears on your credit reports. Some changes can affect your credit score after new information reaches the credit bureaus. Other improvements require months of positive credit history.
| Action | When It May Help | What to Know |
|---|---|---|
| Correct a credit report error | After the credit bureau corrects the information | A dispute investigation often takes 30 days, though some cases can take up to 45 days |
| Lower high credit card balances | After the new balances reach the credit bureaus | Many card issuers update account information about once per month |
| Bring past-due accounts current | Over time as you establish better payment history | Accurate late payments can remain on your credit reports for up to seven years |
| Add a new positive account | After the account begins to build payment history | A new account can also affect other credit score factors |
| Pay or resolve a collection account | Depends on the credit scoring model | A paid collection account doesn’t guarantee a higher credit score |
Someone with high credit utilization may see a change faster than someone whose main problem is several recent late payments. Your starting credit profile matters.
1. Check All Three Credit Reports for Errors
Start with the information used to calculate your credit score. Get free copies of your credit reports from Equifax, Experian, and TransUnion so you can see what each credit bureau has on file.
You can currently request a free credit report from each of the three credit bureaus once per week through AnnualCreditReport.com. Information may differ among your three credit reports, so check all of them.
What to Look For on Your Credit Reports
Take time to read each credit report carefully. Focus on information that could make your credit history look worse than it is.
Common problems include:
- Accounts you don’t recognize: An unfamiliar account could result from identity theft or a mixed credit file.
- Incorrect late payments: Check whether payments you made on time appear as late.
- Wrong balances: Compare reported balances with your own records.
- Duplicate debts: Make sure the same debt hasn’t been reported twice when it shouldn’t be.
- Incorrect account status: Look for closed accounts listed as open or accounts with the wrong payment status.
- Old negative information: Most negative information has limits on how long it can remain on a credit report.
How to Dispute Credit Report Errors
You have the right to dispute inaccurate or incomplete information with the credit bureau that shows it. You can file a dispute online, by phone, or by mail.
If you dispute an error by mail, a credit dispute letter can identify the information you believe is wrong and explain what should change.
A credit bureau generally has 30 days to investigate a dispute. Some investigations can take up to 45 days.
Don’t dispute accurate information simply because it hurts your credit score. Accurate negative information generally can’t be removed early for that reason. You may have grounds to remove negative information from your credit report when it’s inaccurate, duplicated, fraudulent, obsolete, or otherwise reported incorrectly.
2. Lower Your Credit Utilization
Credit utilization compares your revolving credit card balances with your available credit limits. High credit utilization can weigh heavily on your credit score, so this should be one of the first areas you check if you carry large credit card balances.
There isn’t a universal 30% cutoff where credit utilization suddenly becomes good or bad. Lower credit utilization is generally better for your credit score.
Pay Down High Credit Card Balances
Suppose you owe $4,000 on a credit card with a $5,000 limit. Your credit utilization on that card is 80%.
If you reduce the balance to $1,500, your credit utilization falls to 30%. A $500 balance would lower it to 10%.
Your credit score may respond after the card issuer sends the lower balance to the credit bureaus. The result depends on the rest of your credit profile.
Pay Before Your Credit Card Balance Is Reported
Your credit card due date and the date your balance reaches the credit bureaus aren’t always the same.
Many credit card issuers report account information around the end of a billing cycle. A large statement balance can therefore appear on your credit reports even if you later pay the bill in full by the due date.
Check your statement closing date. An earlier payment can reduce the balance that may appear on your credit reports.
Ask for a Higher Credit Limit
You can also request a credit limit increase on an existing credit card.
If your credit limit rises while your balance stays the same, your credit utilization falls. Before you submit the request, ask the card issuer whether it will result in a hard credit inquiry.
A higher limit won’t help much if you use the extra credit for new debt.
3. Build a Record of On-Time Payments
Your payment history is one of the most influential parts of a FICO credit score. Payment history represents 35% of a typical FICO credit score calculation, although the effect varies by credit profile.
A payment usually has to become at least 30 days late before a creditor reports the delinquency to the credit bureaus.
Bring Past-Due Accounts Current
If you’re already behind, stop the account from falling further behind.
A 60-day or 90-day late payment is more serious than a 30-day late payment. An account that remains unpaid may eventually become a charge-off or be sent to a collection account.
Contact the creditor if you can’t make the required payment. Ask whether it offers a hardship plan, temporary payment arrangement, or another option.
Make Future Payments Easier to Manage
A simple payment system can reduce the risk of another missed payment.
- Autopay: Set automatic payments for at least the minimum amount due.
- Payment alerts: Use calendar reminders, text alerts, or email notifications.
- Due date changes: Ask whether the creditor can move your due date closer to payday.
- Monthly reviews: Check every open account before the end of the month.
Ask About a Goodwill Adjustment
A creditor may agree to remove an isolated late payment as a courtesy. It isn’t required to do so.
A goodwill letter gives you a way to explain what happened and ask whether the creditor will remove the late payment from your credit reports.
Not Sure Where to Start With Your Credit?
Different credit problems call for different fixes. Answer a few simple questions and get a free step-by-step plan based on where you are now.
4. Deal With Collection Accounts and Charge-Offs
Collection accounts and charge-offs can make credit recovery harder. Start by confirming that each debt is yours, the balance is correct, and the information on your credit reports is accurate.
A charge-off doesn’t mean you no longer owe the debt. The original creditor may still collect it or transfer it to a collection agency.
The credit score effect of a collection account depends on the credit scoring model. Newer FICO credit scoring models ignore some paid third-party collection accounts, while older models may treat them differently. Paying a collection account doesn’t guarantee a higher credit score.
Before you pay, confirm who owns the debt, how much you owe, and how the account will appear after payment.
5. Keep Older Credit Card Accounts Open When It Makes Sense
An older credit card can help your credit profile because it adds available revolving credit and may remain part of your credit history.
That doesn’t mean you should never close an old credit card. A card with a high annual fee, poor terms, fraud concerns, or a strong temptation to overspend may not be worth keeping.
The more immediate credit score concern is often credit utilization. If you close a card with a $5,000 credit limit, that limit disappears from your available revolving credit. Your credit utilization may rise even though your balances haven’t changed.
What Happens to a Closed Credit Card?
A card doesn’t disappear from your credit report as soon as you close it. A positive closed account can remain on your credit report for years after closure.
Before you close a card, check its credit limit, annual fee, balance, and account history. If the card has no annual fee and you can manage it responsibly, it may make sense to leave it open.
6. Add Positive Credit History if Your Credit File Needs It
Not everyone who wants to rebuild credit needs another account. A new account may offer little benefit if you already have active accounts with positive payment history.
New credit can make more sense when you have very little active credit or need a way to establish recent positive payment history.
Consider a Secured Credit Card
A secured credit card usually requires a refundable security deposit. That deposit reduces the card issuer’s risk, so approval may be easier for someone with damaged or limited credit history.
Before you apply, confirm that the issuer reports payment information to all three credit bureaus. Compare annual fees, interest rates, deposit requirements, and any option to upgrade to an unsecured card.
Use the card for purchases you can afford and pay on time every month.
Consider a Credit Builder Loan
A credit builder loan works differently from a traditional personal loan. You usually don’t receive the loan proceeds upfront. The lender holds the money while you make scheduled payments.
The lender may report your payment activity to the credit bureaus. After you complete the loan, you receive the funds according to the lender’s terms.
Compare the total cost before you sign up. You don’t need to pay unnecessary interest simply to change your credit mix.
7. Consider Becoming an Authorized User
A trusted family member or close friend may be willing to add you as an authorized user on a credit card.
If the account has a long history of on-time payments and low credit utilization, it may help your credit profile. A nearly maxed-out card or an account with late payments may have the opposite effect.
Ask about the account history, balance, credit limit, and payment habits first. You should also confirm that the card issuer reports authorized users to the credit bureaus.
You don’t necessarily need physical access to the card. The primary cardholder can add you without giving you the card to make purchases.
8. Limit New Credit Applications While You Rebuild
New credit applications can work against you if you apply too often. Many lenders request your credit report after you apply for a loan or credit card, which can create a hard credit inquiry.
One hard credit inquiry usually isn’t the main reason someone has a low credit score. Several recent applications may matter more.
New accounts can also lower the average age of your accounts. That doesn’t mean you should avoid new credit forever. It means each application should have a purpose.
If your main problem is high credit utilization or missed payments, another credit card may not be the solution.
What to Do First to Rebuild Your Credit
You don’t need to try every strategy at once. Start with the problems that already appear on your credit reports.
A practical order is to check all three credit reports, correct real errors, bring past-due accounts current, lower high credit card balances, and make every future payment on time. After that, deal with unresolved collection accounts or charge-offs and add new credit only when your credit profile needs it.
There’s no fixed number of points you’ll gain from any one action. The best strategy is the one that addresses the specific information that’s holding back your credit score.
Frequently Asked Questions
Does checking your own credit report hurt your credit score?
No. Checking your own credit report creates a soft credit inquiry, so it doesn’t hurt your credit score.
You can review your own credit reports as often as you need.
Can rent payments help rebuild your credit?
They can if your rent payments appear on your credit reports and the credit scoring model considers that information.
Most landlords don’t automatically report positive rent payments to all three credit bureaus. Some rent-reporting services can add eligible payment history. Check the fees and which credit bureaus receive the information before you sign up.
Can you rebuild credit while a bankruptcy is still on your credit report?
Yes. A bankruptcy can remain on your credit report for years, but you can still add positive information during that time.
On-time payments, lower credit card balances, and careful use of new credit can help establish stronger credit history as the bankruptcy gets older.
Do you need to carry a credit card balance to rebuild credit?
No. You don’t need to carry a balance from month to month or pay interest to build credit.
You can use a credit card, pay the balance in full by the due date, and still build positive credit history. On-time payments and responsible credit use matter. Interest charges don’t help your credit score.
