It could take several years to build your credit from 400 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
| Action | Average Recovery Time |
| Applying for new credit | 3 months |
| Closing an account | 3 months |
| Maxing out a credit card | 3 months |
| Missing a payment, default | 1-2 years |
| Bankruptcy | 7-10 years |
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 400 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 400 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.
This answer was first published on 04/04/23. For the most current information about a financial product, you should always check and confirm accuracy with the offering financial institution. Editorial and user-generated content is not provided, reviewed or endorsed by any company.
FAQs
It could take several years to build your credit from 400 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.
How to improve credit score from 400 to 700? ›
Top ways to raise your credit score
- Make credit card payments on time. ...
- Remove incorrect or negative information from your credit reports. ...
- Hold old credit accounts. ...
- Become an authorized user. ...
- Use a secured credit card. ...
- Report rent and utility payments. ...
- Minimize credit inquiries.
The time it takes to increase a credit score from 500 to 700 might range from a few months to a few years. Your credit score will increase based on your spending pattern and repayment history. If you do not have a credit card yet, you have a chance to build your credit score.
How long will it take to fix a 400 credit score? ›
If you've only had a few recent mistakes, you may be able to fix your credit in a few months, but if you've had a long history of missed payments and poor credit management, it could take years to see serious improvements.
How do I get my credit score from 300 to 700? ›
Steps to Improve Your Credit Scores
- Build Your Credit File. ...
- Don't Miss Payments. ...
- Catch Up On Past-Due Accounts. ...
- Pay Down Revolving Account Balances. ...
- Limit How Often You Apply for New Accounts.
It could take several years to build your credit from 400 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.
How to get a 720 credit score in 6 months? ›
To improve your credit score to 720 in six months, follow these steps:
- Review your credit report to dispute errors and identify areas for improvement.
- Make all payments on time and avoid applying for new credit.
- Lower your utilization ratio by paying down balances, increasing credit limits, or consolidating your debt.
Your score falls within the range of scores, from 300 to 579, considered Very Poor. A 400 FICO® Score is significantly below the average credit score. Many lenders choose not to do business with borrowers whose scores fall in the Very Poor range, on grounds they have unfavorable credit.
Is 650 a good credit score? ›
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.
What credit score do you start at? ›
Though FICO® and VantageScore® ranges start at 300, most new credit users don't start this low. In fact, if you've never taken out credit or applied for a loan, you might not have a credit score at all.
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.
Can you get a house with a 400 credit score? ›
It's highly unlikely you'll qualify for a conventional mortgage with your credit score. The lending standards of both Fannie Mae and Freddie Mac require a minimum credit score of 620, and even this level requires a strong debt-to-income ratio and a rather large down payment.
Is 700 a good credit score to buy a house? ›
Yes. Assuming the rest of your finances are solid, a credit score of 700 should qualify you for all major loan programs: conventional, FHA, VA and USDA loans all have lower minimum requirements, and even jumbo loans require a 700 score at minimum.
What credit score is needed to buy a house? ›
The minimum credit score needed for most mortgages is typically around 620. However, government-backed mortgages like Federal Housing Administration (FHA) loans typically have lower credit requirements than conventional fixed-rate loans and adjustable-rate mortgages (ARMs).
Has anyone ever had a 300 credit score? ›
16% of all consumers have FICO® Scores in the Very Poor range (300-579).
How fast can you raise your credit score from 500 to 700? ›
The time it takes to raise your credit score from 500 to 700 can vary widely depending on your individual financial situation. On average, it may take anywhere from 12 to 24 months of responsible credit management, including timely payments and reducing debt, to see a significant improvement in your credit score.
How long does it take to rebuild credit from 500 to 700? ›
The time it takes to raise your credit score from 500 to 700 can vary widely depending on your individual financial situation. On average, it may take anywhere from 12 to 24 months of responsible credit management, including timely payments and reducing debt, to see a significant improvement in your credit score.
How to increase credit score by 100 points in 30 days? ›
Steps you can take to raise your credit score quickly include:
- Lower your credit utilization rate.
- Ask for late payment forgiveness.
- Dispute inaccurate information on your credit reports.
- Add utility and phone payments to your credit report.
- Check and understand your credit score.
- The bottom line about building credit fast.
4 tips to boost your credit score fast
- Pay down your revolving credit balances. If you have the funds to pay more than your minimum payment each month, you should do so. ...
- Increase your credit limit. ...
- Check your credit report for errors. ...
- Ask to have negative entries that are paid off removed from your credit report.
A 400 credit score can be a sign of past credit difficulties or a lack of credit history. Whether you're looking for a personal loan, a mortgage or a credit card, credit scores in this range can make it challenging to get approved for unsecured credit, which doesn't require collateral or a security deposit.
