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Rebuild Your Credit

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  • Review your credit report regularly. You can receive a report from all three major credit agencies at There may be errors on your report so check for any inconsistencies.
  • Catch up on past due payments.
  • Budget and build an emergency fund.
  • Apply for a credit card secured by your money. Keep paying on time and do not run a balance above 30% of the credit limit.
  • Check your score periodically to see if it is improving.
  • Do not apply for too much credit in a short period of time.

How long does it take to rebuild my credit? It depends on the type of negative credit you have. The Fair Credit Reporting Act (FCRA) governs the length of time that negative information can remain on your credit report.

  • Late payments will be removed after 7 years
  • Chapter 13 bankruptcy 7 years from filing date
  • Chapter 7 bankruptcy 10 years from filing date
  • Foreclosure 7 years
  • Lawsuits and judgements 7 years and longer
  • Paid tax liens 7 years. Unpaid tax liens 10 years from filing date
  • Collections 7 years from original delinquency date
  • Approximate credit weight for each year:
    • 40% current to 12 months
    • 30% 13-24 months
    • 20% 25-36 months
    • 10% 37+ months

If your credit is less than perfect, we hope these tips can help you improve it. Contact a Loan Specialist at Transcend if you have any questions on increasing your credit score. We have trained loan personnel that can assist you in rebuilding your credit.