Credit Score 101
Absolutely! If you’ve been unable to get a loan because you have bad credit, you’re probably asking yourself — can you recover from a bad credit score? The truth is that credit score recovery is completely possible. All it takes is making consistent payments and a bit of patience. It’s also a good idea to understand and avoid factors that might cause your credit score to drop.
You may have bad credit as a result of one or more of the following factors:
Of course, there’s always a chance that there’s incorrect information on your credit report. Make sure to continue to keep an eye out for any mishaps as you go over your credit report. Still confused about why your credit score dropped?
Read more here.
Financial education isn’t exactly taught in school. Many people never learned how to build credit in the first place, let alone how to recover from a bad credit score. If you’re asking yourself, how to recover my credit score, start with our top tips for credit score recovery.
Hungry for more credit tips? Discover more tips on how to recover from a bad credit score here.
Bankruptcy will damage your credit score, but remember that it isn’t permanent. How long does bankruptcy stay on your credit report? It depends. Chapter 7 bankruptcies stay on your credit report for about 10 years, while Chapter 13 bankruptcies can be around for 7 years or so.
First-time late payers can often get their late fee payment waived, and paying within 30 days of the due date can help avoid damaging your credit. At MoneyLion, we time the reporting of your credit builder loan payments to help you avoid a negative hit if you miss a payment. We’ll send you reminders to catch up before we report it late — we want to make sure your payments get reported as on-time payments! To learn more about late payments, read more here.
There’s no concrete way to determine how long to recover credit scores. The length of time it takes depends on a number of factors, including your past credit history and what steps you’re taking to fix it now. Learn more about how long it takes to recover credit scores here. Most people who take our Credit Builder Plus loan raise their credit by an average of 60 points within two months, so it’s a great way to jumpstart your credit recovery.
Reader of the pack
Ultimately, staying on top of your bills and following our top tips can help with credit score recovery. It’s also a good idea to dive into educational resources to learn more about credit score recovery.
We’re here to make your finances roar — so check out these resources to learn more about your credit score!
Start With The Basics: Read more about what makes up your credit score here.
Do The Math: Learn more about how your credit score is calculated here.
Make It Personal: As you plan your financial future, our financial experts weigh in on personal financial planning and everything you need to know here.
Level Up With a Loan: If you’re interested in exploring personal loans, read our go-to guide here.