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Life happens. You may find yourself in credit hot water and surprised at how you even got there. The good news is that there are measurable steps you can take to boost your credit score. One of the best ways to do that is to understand how long certain derogatory marks will last on your report so you can determine the best way forward.

If you’re hoping to build your credit score but wondering how long it takes to improve your credit, then consider these steps to help get you started.

How long does it take for your credit score to go up?

The time it will take to raise your credit score depends on the reason your score is low in the first place.

If your score is low because you don’t have much credit history or you’re just starting your credit-building journey, you may be able to boost your score within just a few months. But if you’ve hurt your creditworthiness through missed payments or are going through bankruptcy, making your way back to a healthy credit score will take even more patience.

If you want to boost your credit score after missing credit card or loan payments, declaring bankruptcy, defaulting on a loan, having a loan turned over to a collection agency or experiencing any other major financial issues, know that it can take years to rebuild your credit. 

But in nearly all cases, the process begins with putting in the time to manage your budget and cutting back on spending so that you can make consistent, timely payments every month.

How long do derogatory marks stay on your credit report?

The three major credit bureaus record your credit history and then FICO or VantageScore use that information to calculate your score. However, these changes often take at least 30 days to update. So, if you pay off all credit card debt, for example, you won’t see that reflected in your credit score for at least one billing cycle.

In addition to a potential delay in the telephone game between your credit issuer and the credit bureaus, certain financial events can linger on your credit history for years. Unfortunately, the more harmful events are often the ones that stick around the longest, so it’s best to know what actions will be the most significant burdens. Below are the average times these events can last on your credit report:

Breaking down your credit score

Credit scores reflect your creditworthiness and likelihood of repaying debt. These scores are primarily based on the information found in credit reports from the three major credit bureaus: Experian, Equifax and TransUnion.

Lenders and creditors use credit scores to assess the risk of extending credit to an individual, with higher scores indicating lower risk. Maintaining a good credit score requires responsible credit behavior, and regularly monitoring credit reports and scores can help you identify and address any issues that may affect your creditworthiness.

Listed in order of importance (according to FICO), each of the following factors can raise or lower your credit score:

• Payment history (35%): A history of consistent on-time payments is the most influential factor in your score, so being new to credit makes it easier to raise your credit profile. Every month you pay your cards on time will bump up your credit score. 
• Amounts owed (30%): Your credit utilization ratio (also called your debt-to-available-credit ratio) is the total amount of credit you’ve used compared to the amount available to you across all your lines of credit. The more cards you have, the more credit you’ll have available. Typically, you want to keep your total credit utilization below 30% to stay in good standing.
• Length of credit history (15%): The length of credit history refers to the average age of your credit accounts. The longer the account has been open, the better, so you may want to avoid closing an old account to keep yourself from a poor credit standing.
• Credit mix (10%): Adding new types of debt to your profile, such as personal loans or auto loans, will give you a healthier credit mix and potentially raise your credit score. 
• New credit (10%): Each time you open a new credit account, the lender conducts a hard credit inquiry that will temporarily ding your credit score. If you have too many of those hard credit checks in a short time frame, that can raise an alarm among lenders because it looks like you’re in need of quick credit. 

Best ways to increase your credit score

You can do several things in the short term to try to better your credit score:

• Make credit card payments on time. Paying your bills on time is beneficial for people with no credit history because you have the chance to prove yourself by being consistent right off the bat.
• Remove incorrect or negative information from your credit reports. Often, you can challenge old information or dispute errors on your credit report to attempt to get the event removed.
• Hold old credit accounts. Keeping accounts open that improve your length of credit will help your score as you better your habits.
• Become an authorized user. When an account holder adds you to an existing credit card account as an authorized user, you add information to your credit history by piggybacking on someone else’s. 
• Use a secured credit card. A secured credit card is your best option when you have no credit and can help you build up your credit score by generating a history of responsible use. Secured credit cards require a deposit to obtain a line of credit, and the line of credit is usually equal to the initial deposit.
• Report rent and utility payments. A history of on-time rent and utility payments can benefit your credit. Still, if your landlord or property management company isn’t already reporting your rent payments, you may need an alternative reporting service. For example, you may be able to use Experian Boost to add these accounts to your credit history.
• Minimize credit inquiries. Every time you apply for a new credit card, your credit score takes a hit. You can avoid any unnecessary dings to your credit by researching credit options that are best for your financial needs.

The bottom line

As with many of life’s problems, there’s no better time to address a low credit score than now. By making on-time payments and carefully assessing your financial needs, you will be on the right track toward building strong credit.

Remember that the path to financial recovery takes time, sometimes even years. However, regardless of the dilemma you may find yourself in, a proactive approach is the best way to build credit responsibly. Your credit score will thank you in the long run.