How Long Does it Take to Build Credit From 300 to 700? (2024)

FAQs

How Long Does it Take to Build Credit From 300 to 700? ›

It could take several years to build your credit from 300 to 700. The exact timing depends on which types of negative marks are dragging down your score and the steps you take to improve your credit going forward.

Every growth process has to start somewhere, and a 300 FICO^® Score is a good beginning point for improving your credit score. Boosting your score into the fair range (580-669) could help you gain access to more credit options, lower interest rates, and reduced fees and terms.

It could take several years to build your credit from 300 to 700. The exact timing depends on which types of negative marks are dragging down your score and the steps you take to improve your credit going forward.

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.

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.

Minimum credit score requirements can vary by lender

For example, FHA technically allows FICO scores as low as 500. But most lenders won't go below 580, and some even require a score of 620 for an FHA loan. According to Fannie Mae, the majority of mortgage lenders apply mortgage overlays.

The two most widely used credit scoring models, FICO and VantageScore, range from 300 to 850, making 300 the lowest credit score possible.

What is a good credit score to buy a house? ›

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.

Using more of your credit card balance than usual — even if you pay on time — can reduce your score until a new, lower balance is reported the following month. Closed accounts and lower credit limits can also result in lower scores even if your payment behavior has not changed.

How long after paying off debt will my credit scores change? The three nationwide CRAs generally receive new information from your creditors and lenders every 30 to 45 days. If you've recently paid off a debt, it may take more than a month to see any changes in your credit scores.

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.

It depends on your starting point. Generally, significant improvement can happen within a few months with dedicated effort (like paying down debt). Reaching 700 itself might take longer (12-24 months), depending on your credit history. Consistency is key!

You can improve a bad credit score by paying your bills on time, paying off debt, avoiding new hard inquiries and getting help building credit.

On average, credit repair takes about three to six months. Your score should gradually improve throughout the process each time a creditor agrees to make a change in your favor.