How long does it take to get a credit score from 500 to 700 (2024)

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  • October 13, 2023
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How long does it take to get a credit score from 500 to 700 (2)

Are you tired of a low credit score holding you back from your financial goals? It’s time to take control of your credit health.

Many people wonder how long it takes to improve a credit score from 500 to 700. The answer is not a one-size-fits-all, but with the right steps and commitment, you can significantly improve your creditworthiness.

Imagine the possibilities with a higher credit score. You could qualify for better interest rates on loans, get approved for your dream apartment, or even secure that coveted credit card with fantastic rewards.

Here are steps you can take to improve your credit score and move from 500 to 700:

Check Your Credit Report: Start by obtaining a free copy of your credit report from each of the three major credit bureaus (Equifax, Experian, and TransUnion). Review them for errors and dispute any inaccuracies.

Pay Your Bills on Time: The most significant factor affecting your credit score is your payment history. Make sure you pay all your bills on time, including credit cards, loans, and utilities.

Reduce Credit Card Balances: High credit card balances relative to your credit limit can negatively impact your score. Aim to lower your credit card balances to below 30% of your credit limit.

Don’t Close Old Accounts: Closing old credit accounts can hurt your credit score. Keep them open, even if you don’t use them often, to demonstrate a longer credit history.

Diversify Your Credit Mix: Having a mix of credit types (credit cards, installment loans, etc.) can positively impact your score.

Be Patient: Improving your credit score takes time. Consistently following these steps can gradually raise your score over several months to a year or more.

Remember, everyone’s credit situation is unique, so the time it takes to go from a 500 to 700 credit score may vary. The key is to stay committed to responsible financial habits and monitor your progress regularly.

Consider speaking with a credit counsellor or financial advisor for personalised advice if you’re serious about increasing your credit score. Taking action today is the first step towards an improved credit score.

How Long Does It Take to Get a Credit Score from 500 to 700

A good credit score typically falls within a specific range that is considered favorable by lenders and creditors. Credit scores are commonly calculated using a scoring model, which assigns scores on a scale of 300 to 850. Here’s a breakdown of credit score ranges and what they typically mean:

Poor Credit (300-579): A credit score in this range is generally considered poor or very poor. Individuals with scores in this range may find it challenging to qualify for credit, and if they do, they may face higher interest rates and stricter terms.

Fair Credit (580-669): This range is often classified as fair or subprime. While it may be possible to qualify for credit with scores in this range, interest rates are likely to be higher than those offered to individuals with better credit.

Good Credit (670-739): A credit score in this range is considered good. Individuals with good credit scores are generally eligible for a wide range of credit products and may receive competitive interest rates.

Very Good Credit (740-799): Scores in this range are considered very good. Those with scores at the higher end of this range may qualify for the best interest rates and terms on loans and credit cards.

Excellent Credit (800-850): An excellent credit score falls in the highest range. Individuals with excellent credit are typically offered the most favorable terms and the lowest interest rates on credit products.

FAQ

The time it takes to raise your credit score from 500 to 700 can vary widely depending on your individual financial situation. On average, it may take anywhere from 12 to 24 months of responsible credit management, including timely payments and reducing debt, to see a significant improvement in your credit score.

Several factors can affect the speed at which your credit score increases, such as the severity of negative items on your credit report, the consistency of your positive credit behavior, and the types of credit accounts you have. Addressing negative items like late payments or collections can accelerate the process.

Yes, there are steps you can take to expedite the credit score improvement process. Focus on paying bills on time, reducing credit card balances, and avoiding opening too many new credit accounts. These actions can have a positive impact on your score over time.

Beware of so-called “quick fixes” or credit repair services that promise instant results. Legitimate credit improvement takes time and patience. Be cautious of any offers that seem too good to be true, as they may involve unethical or illegal practices.

Yes, using credit-building tools like secured credit cards can be a useful strategy for improving your credit score. These cards require a security deposit and are designed for individuals with lower credit scores. Consistently using a secured card responsibly can help boost your creditworthiness over time.

Yes, it is definitely possible to achieve a credit score of 700 or higher with dedication and responsible financial management. Many individuals with previously low credit scores have successfully improved their credit profiles and reached higher scores through diligent efforts.

Yes, regularly monitoring your credit score and reviewing your credit reports is essential during the credit improvement journey. Monitoring allows you to track your progress and catch any errors or discrepancies that may affect your score negatively

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How long does it take to get a credit score from 500 to 700 (2024)

FAQs

How long does it take to get a credit score from 500 to 700? ›

Average Recovery Time

How to go from a 500 to a 700? ›

Listed below are a few ways to improve your credit score from 500 to 700:
  1. Repayments on Time. Never miss a repayment. ...
  2. 30% Credit Utilisation. Financial experts say that you should never spend more than 30% of your assigned credit limit. ...
  3. Avoid Multiple Loans.
Aug 11, 2022

Can you recover from a 500 credit score? ›

The bad news about your FICO® Score of 500 is that it's well below the average credit score of 714. The good news is that there's plenty of opportunity to increase your score. 99% of consumers have FICO® Scores higher than 500. A smart way to begin building up a credit score is to obtain your FICO® Score.

How to get 700 credit score fast? ›

How do I get a 700 credit score in two months?
  1. Dispute errors and negative marks on your credit report.
  2. Continue making all of your payments on time and avoid applying for new credit.
  3. Reduce your credit card balances by paying them off or getting a consolidation loan.
  4. Keep old credit cards open after paying them off.

Can you raise your credit score from 500 to 800? ›

To increase your credit score to 800, you'll need a nearly flawless payment history, a credit utilization rate well below 30%, a healthy mix of credit types, and an extensive credit history. The average American has a credit score of 716, well within the range of what is considered a good credit score.

How fast can I build my credit from a 500 to a 700? ›

The time it takes to raise your credit score from 500 to 700 can vary widely depending on your individual financial situation. On average, it may take anywhere from 12 to 24 months of responsible credit management, including timely payments and reducing debt, to see a significant improvement in your credit score.

Is 650 a good credit score? ›

As someone with a 650 credit score, you are firmly in the “fair” territory of credit. You can usually qualify for financial products like a mortgage or car loan, but you will likely pay higher interest rates than someone with a better credit score. The "good" credit range starts at 690.

Is 524 a bad credit score? ›

Your score falls within the range of scores, from 300 to 579, considered Very Poor. A 524 FICO® Score is significantly below the average credit score. Many lenders choose not to do business with borrowers whose scores fall in the Very Poor range, on grounds they have unfavorable credit.

How much can I borrow with a 500 credit score? ›

Lenders offer various loan amounts, but personal loans for bad credit generally range from $1,000 to $50,000. But compare potential offers—the exact amount you qualify for will vary depending on your income and how much existing debt you have.

Can you buy a house with a 550 credit score? ›

You'll typically need a credit score of 620 to finance a home purchase. However, some lenders may offer mortgage loans to borrowers with scores as low as 500. Whether you qualify for a specific loan type also depends on personal factors like your debt-to-income ratio (DTI), loan-to-value ratio (LTV) and income.

Can I buy a house with a 700 credit score? ›

So yes, 700 ought to be a good enough credit score to buy a house. In fact, says DiBugnara, “a credit score of 680 or above will likely give borrowers access to 95 percent of financing options available.”

How much can I borrow with a 700 credit score? ›

You can borrow from $1,000 to $100,000 or more with a 700 credit score. The exact amount of money you will get depends on other factors besides your credit score, such as your income, your employment status, the type of loan you get, and even the lender.

Why did my credit score go from 524 to 0? ›

Credit scores can drop due to a variety of reasons, including late or missed payments, changes to your credit utilization rate, a change in your credit mix, closing older accounts (which may shorten your length of credit history overall), or applying for new credit accounts.

Is a 900 credit score possible? ›

Highlights: While older models of credit scores used to go as high as 900, you can no longer achieve a 900 credit score. The highest score you can receive today is 850. Anything above 800 is considered an excellent credit score.

Is pay to delete legal? ›

Technically, pay for delete isn't expressly prohibited by the FCRA, but it shouldn't be viewed as a blanket get-out-of-bad-credit-jail-free card. "The only items you can force off of your credit report are those that are inaccurate and incomplete," says McClelland.

What is the average credit score? ›

The average FICO credit score in the US is 717, according to the latest FICO data. The average VantageScore is 701 as of January 2024. Credit scores, which are like a grade for your borrowing history, fall in the range of 300 to 850.

How big of a loan can I get with a 700? ›

You can borrow from $1,000 to $100,000 or more with a 700 credit score. The exact amount of money you will get depends on other factors besides your credit score, such as your income, your employment status, the type of loan you get, and even the lender.

Is 700 a good credit score? ›

For a score with a range between 300 and 850, a credit score of 700 or above is generally considered good. A score of 800 or above on the same range is considered to be excellent. Most consumers have credit scores that fall between 600 and 750. In 2023, the average FICO® Score in the U.S. reached 715.

Is it possible to have a 700 credit score with collections? ›

It is theoretically possible to get a 700 credit score with a collection account on your credit report. However, it is not common with traditional scoring models. A derogatory mark like a collection account on your credit report can make it incredibly difficult to obtain a good credit score like 700 or over.

How long does it take to get 800 credit score from 700? ›

If you possess a good credit history and maintain a low credit utilization ratio, reaching an 800 credit score could be achievable within a few years. Conversely, if your credit history is poor or your credit utilization ratio is high, the journey might take longer.

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