How Long Does It Take to Rehab a Poor Credit Score?

credit scoreIf your credit score is too low to qualify for a home mortgage today, it could take less time than you think to turn things around according to ABC News. In a recent article, they shared two informative charts that show how long it takes your credit score to rebound from certain negative credit events. For example, if your starting FICO credit score is 680 and you file for bankruptcy, it could take as little as five years for your credit score to get back to 680. Although technically a bankruptcy can remain on your credit report for up to 10 years, as the information ages and you re-establish a good credit history, the negative impact on your credit score diminishes. Barrett Burns, CEO of VantageScore, an independent credit scoring company, confirmed this saying, “An awful lot of people assume that because information stays on a credit report for seven years … all that data is equally important all the way through the seven years. As data gets older it slowly loses predictive value.” In other words, when it comes to a poor credit score, time really can heal all wounds.

To learn more, read the entire article.

Image Source: Simon Cunningham