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

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.

You can use WalletHub’s free credit score simulator to find out how specific actions will affect your score and how long it will take to reach your credit score goal.

Average Recovery Time for Negative Marks on Your Credit Report

Source: VantageScore

Derogatory marks, such as collections or bankruptcies, significantly lower your credit score. However, the negative impact declines as time goes on. You can expedite your credit score’s recovery, too.

How to Improve Your Credit Score From 300 to 700

To raise your score as soon as possible, you must inundate your credit reports with positive information. The two most important factors affecting your credit score are payment history and credit utilization. Below, we highlight some of the steps you can take to improve both.

Pay All of Your Bills on Time

You have to consistently pay all of your bills on time in order to build a good or excellent credit score. Even one late payment on your credit report can cause your score to fall by up to 100 points, or even more in some cases.

Late payments can indicate to lenders you are not reliable when it comes to managing your financial obligations, which can make it more difficult for you to obtain credit in the future. If you are having trouble making payments, you should contact your creditors as soon as possible to discuss your options.

Reduce Your Debt

The more debt you have, the worse it generally is for your credit score. You can employ a variety of strategies to help reduce your debt, including simple budgeting and using a balance transfer credit card or debt consolidation loan to lower the cost of what you owe.

In addition, you could attempt to negotiate with creditors to lower your interest rates or monthly payments, or seek professional guidance from a non-profit service. Effective debt management can help you improve your credit score and maintain financial stability in the long term.

Use a Secured Card Responsibly

You can use a secured credit card to build a history of on-time payments. Secured cards usually require a deposit, the amount of which also serves as your credit limit, making them easy for people with a 300 credit score to get approved for. You can compare the best secured cards for free here at WalletHub.

Bring Your Utilization Below 30%

Credit utilization measures how much of your credit limit you’re using, based on your monthly statement balance. It’s calculated for each line of credit you have as well as for all of them together. Keeping your utilization below 30% is good for your credit score, and a ratio of 1-10% is ideal. High credit utilization can signal that you are relying too heavily on credit and may not be able to manage your debts effectively.

You can use WalletHub’s free credit score simulator to find out how specific actions may affect your credit. You can also get personalized credit-improvement tips from our analysis tool.