How Long Before My Credit Rating Improves?

It does not take much to damage your credit rating. A foolish purchase at a young age and the credit card bill comes in and you have no idea how you are going to pay for it.

One month passes, then two, and the next thing you know, the card is closed, and you are getting nasty phone calls and letters from a debt collection agency.

Once that black mark appears on your credit report, how long does it take you to be able to repair and rebuild your credit rating?

Once a credit card goes into default, it can become an ugly vacuum

If the credit card company holds the debt, they are more than likely tacking on fees and higher interest payments every month.

What was already a difficult debt becomes one that is virtually impossible to manage. You need to take charge and attempt to stop this cycle before it truly gets out of control.

Please contact the credit card company and let them know the situation. It does not benefit anyone for the balance to continue increasing without any payment being made.

If you let them know you want to make good on the debt, they may close out the card, lock in the interest rate and even refund the fees. If they refuse to discuss the matter, you need to find a way to pay off that debt and start the rebuilding process.

If your credit has not yet been damaged, you may be able to find a lower-interest credit card to which you can transfer the balance.

Even if you have bad credit, some bad credit credit cards have introductory rates that will be more reasonable than what the other company is charging. If that is not an option, you may need to pursue a debt consolidation loan or a debt management plan of some type.

Once your debt has been budgeted, you are now going to have to deal with the bad credit that is on your report. In most cases, bad credit will remain on your credit report for six years.

Most importantly, make sure you keep your credit clean from this day forward. For the next couple of years, the negative marks will probably prevent you from being able to secure any mainstream type of credit.

However, after a few years and spotless credit, lenders will see that you have been able to once again get your finances under control.

After a consistent period of good credit, you may well start to see offers with lower interest rates and approval for unsecured loans if they’re affordable for you to repay.