It can be disheartening to see your credit score drop after a financial setback. Whether you missed mortgage payments, made the hard choice to file for bankruptcy or faced something else entirely, these kinds of disruptions can result in a hit to your credit.
But with a plan, adhering to healthy financial habits and a dose of patience, you can rebuild your credit. By improving your overall financial picture, your credit will follow over time.
There’s no one answer to how long it takes to rebuild credit. The time varies from person to person. Someone with several missed payments over the past two years could expect it to take a while for their score to improve. However, someone with a few missed payments six years ago could see a faster improvement, provided their payment history since then has been excellent.
While there’s no definitive answer, many agree that the best time to start is now. Here are six tips for how to get started rebuilding your credit: