If you're 30 days late in paying a mortgage, it can take anywhere from nine months to three years to repair your credit. The higher your score was initially, the longer it will take to fully recover from the setback. Unfortunately, there is no quick fix for your credit. The time it takes to rebuild your credit history depends on the severity of your credit problems and how your credit history was affected. It could take just a few months or it could require several years of commitment.
In either case, there are steps you can start taking right away to help get your credit back on track. You can handle the credit repair process yourself or hire a professional credit repair company to guide you through the process. As the Federal Trade Commission explains, there's nothing a credit repair company can do for you that you can't do for yourself. The reason you might want to hire one is if you're not comfortable with the process or don't want to spend most of your time following it to the end. Ultimately, while you can build your credit faster by focusing on making payments and reducing your debt, the key factors in improving your credit are time and patience. To get started on repairing your credit score, there are a few steps you should take.
First, check your credit report for any errors or inaccuracies. If you find any, dispute them with the three major credit bureaus: Experian, TransUnion, and Equifax. This will help ensure that all information reported about you is accurate. Next, focus on paying off any outstanding debts. Paying off debt is one of the most effective ways to improve your credit score.
Make sure to pay all bills on time and in full each month. This will help demonstrate that you are responsible with money and can be trusted with future loans. Finally, consider applying for a secured credit card or loan. Secured cards and loans require a deposit as collateral, which helps reduce the risk for lenders. This can be a great way to build up your credit score if used responsibly. Repairing your credit score takes time and patience, but it is possible.
With dedication and commitment, you can get back on track and have a healthy financial future.