Credit Score 101

Can You Recover From
a Bad Credit Score?

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.

Credit Score Recovery
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You may have bad credit as a result of one or more of the following factors:

  • Missed payments
  • Late payments
  • Major purchases (or a maxed-out card)
  • Your credit card limit was lowered
  • Closing one of your credit cards
  • Declaring bankruptcy

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.

How to Recover My Credit Score 101

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.

  • Pay your bills on time: If you pay on time and reduce your outstanding balance, your score should rebound over time. Credit score recovery after late payments is possible, but you’ll need to start paying on time now and stick with it.
  • Lower your credit utilization rate: Your credit utilization rate represents how much of your available credit you are using up. You want to keep your credit utilization rate as low as possible.
  • Become an authorized user: If you have a reliable family member or friend who can add you to their card, you may be able to build credit with them as well.
  • Try a secured credit card: A secured credit card is an actual credit card that is backed by an initial cash deposit you make. Your credit limit depends on how much cash you deposit.
  • Co-sign on credit: Ask a friend or family member to co-sign on a loan or a credit card, but remembers that your payment activity will affect both parties’ scores.
  • Get credit with rent-reporting: A rent-reporting service will verify that you’ve paid your rent on time to a number of credit bureaus, which can help your score go up.
  • Apply for a credit builder loan: With MoneyLion, you can get a credit builder loan with no credit check. You’ll get some cash up front, save money for later, and build credit at the same time.

Hungry for more credit tips? Discover more tips on how to recover from a bad credit score here.

Wondering about bankruptcy credit
score recovery?

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.

Credit score recovery after late payments is also possible

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.

How long does it take to build credit?

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.

recover your credit score

Recover Your Credit Score with MONEYLION

Can’t get a loan because you have bad credit but can’t start credit score recovery until you have a loan?

Try a Credit Builder Loan from our Credit Builder Plus membership. We built it for people who have no credit or who have bad credit that they need to recover.

There’s no credit check to apply, and you could qualify for a loan up to $1,000, credit monitoring tools, and 0% APR cash advances! Our Credit Builder Plus membership is a proven way to boost your credit score. In fact, over half of members raise their credit over 60 points within their first 60 days!

Read our Beginner’s Guide To Credit Builder Loans here.

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How to Recover My Credit Score 101

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.

Recover Your Credit Score TODAY