How long does it take to improve your credit score?

Credit scores can change on a daily basis. However long it takes you to clear your debt will instantly effect your credit score.

It can depend on mainly whether the debt is in collections. Keep in mind that just paying the debt is not enough. The collection account alone has done its share of damage to your score, and it’s important that when you prepare to pay off the debt that you negotiate a “pay to delete” which is a payment in exchange for removing it from your credit report. I posted some links that explain how to do this in detail

http://www.creditinfocenter.com/debt/settle_debts.shtml

http://www.creditinfocenter.com/debt/neg_rating_after_settle.shtml

http://www.creditinfocenter.com/debt/CanCreditorSue4SettlementDifferences.shtml

http://www.creditinfocenter.com/debt/debt-negotiation.php

Once you get those debts taken care of, then you have to have open accounts that are rebuilding credit for you. Remember, it takes good credit to rebuild credit. A good way to not only rebuild credit but to start up an emergency fund is to open a secured credit card. Secured cards are the easiest credit cards to get approved for being that a deposit that’s used as collateral is required upfront in order to build credit reducing your chances of getting denied. You use it like a normal credit card and either pay it in full or make a minimum payment every month. Another benefit is that you have more control over the credit line since you have to place a deposit. The more you deposit, the higher your limit, which can help your score because the higher credit limits create a cushion between the total debt owed and the available credit, which makes up 30% of your score. Usually after paying on time for about a year or so, the card is upgraded to a regular card and more importantly, the deposit is given back since it wouldn’t be needed anymore. This is a perfect opportunity to start up an emergency fund with the deposit money. This way, you will have a backup plan of some sort, so you won’t go through what you went through again.

It’s going to take a litlle time, maybe a couple years or so before you really start seeing some results, but hang in there, and I thank you reading!

It is good to hear that you are healthy now. I know how prolonged illnesses can truly devestate one’s finances. I see it every day.

There are two answers to your question. One is long term and the other is short term.

If you are in this for the long term, your credit will improve gradually over the next several years. This is provided you don’t overextend your credit and pay your bills on time, etc. As you work all this debt off, your payment history will reflect this and slowly, your credit will improve. Each month your score can go up a point or two depending on a myriad of options.

The short term solution is a contriversial one. Credit restoration by a professional credit restoration company. They can usually improve your credit within six months to a year. However, there are so many people out there who will not or cannot deliver on their promises, that you are taking a risk. There are really only a handful of legitimate credit restoration companies in the United States who can deliver. So do your due dilligence if you decide to use one of these services. I have provided a link to an article about how to determine the good companies from the others.

If you have any further questions regarding credit issues, you may feel free to contact me at nebula7693@yahoo.com