One of the first questions I hear from new buyers is: “How long will it take to fix my credit before I can buy a home?” The honest answer is, it depends. Everyone’s situation is different. Some people are starting with no credit at all, while others are recovering from collections or late payments. The timeline can range from a few months to more than a year, but the key is to start today—not later.
Building Credit from Scratch
If you’re young and have never touched credit, you’re starting at zero. The fastest way to build is with secured credit cards. You give the bank $300, they give you a card, and you use it responsibly. Credit cards are the quickest way to build scores—it’s math.
I teach what I call the “$10 game.” You charge $10, then on the due date, you pay it off, not the day before, not the day after. Same day, go charge $10 again. Do that consistently, and within 90 days, you’ll have a score. At six months, you’ll have a solid score. After a year, you’re in a position most banks like to see.
Recovering from Collections or Late Payments
If you already have credit but it’s damaged by collections or late payments, the road takes longer. Collections hit hard—usually a 40 to 60 point drop, depending on credit history. Late payments can do even more damage if you don’t have much credit history.
Paying off a collection doesn’t boost your score; it just stops the bleeding. Once a debt goes to collections, it can be sold again and reported again, so ignoring it makes things worse. My advice is simple: take care of the small ones completely and settle the larger ones if needed. Never waste time disputing a debt you actually owe—it almost never works.
How Long Will It Take?
There’s no one-size-fits-all, but here are some general timelines I see:
- No credit history: 90 days to generate a score, 6–12 months to reach a good score.
- Light damage (one or two late payments): about 6–12 months to recover.
- Multiple collections and late payments: 12 months or more, depending on how much you repair and rebuild with new credit cards.
The biggest mistake people make is waiting. They’ll say, “I’ll rent for a year and call you then.” If you don’t work on your credit during that time, nothing changes. A year later, you’re in the same place.
Free Credit Repair vs. Paid Companies
A lot of people get pulled into credit repair companies that charge upfront fees and monthly payments. The problem is, most of them just play games with disputes. They’ll remove a couple of items, but then other ones come back, and you’re left paying hundreds of dollars with little progress.
That’s why I teach credit repair for free. Once you understand how the system works, you can make real progress without wasting money. It only takes about 30 minutes to review your credit report and create a plan.
Final Thoughts
Credit repair is not about a magic fix—it’s about consistent, small actions that add up. Whether it’s playing the $10 game, paying off collections the right way, or avoiding costly mistakes, the sooner you start, the sooner you’ll be ready to buy a home.
Your credit is the foundation of your financial future, not just for a mortgage but for everything else you do with money. Don’t wait until you think you’re ready to buy. Start now, and when the right house comes along, you’ll be ready.
Take 30 minutes with us to review your credit. That half hour could change the course of your homeownership journey.
– REHL Team Clemente at: clemente@ramonespinozahomeloans.com or Ramon at ramon@ramonespinozahomeloans.com.
Se habla Español
