05 Dec 2022

How Long Does It Take to Clear Credit History?

Clear My Credit History and Mortgages

Potential borrowers and homeowners researching the various aspects of applying for a home loan may want to learn more about how long it takes to clear their credit history. It is important to keep in mind that there are a wide variety of factors that can negatively influence an individual’s credit history. How long it takes to clear credit history largely depends on the types of factors that are negatively influencing an individual’s credit. 

  • Repayment history information stays on an individual’s credit report for two years
  • Credit history, court judgements, overdue accounts classified as a payment default, overdue accounts classified as clearouts, and writs and summons can stay on an individual’s credit report for five years
  • Overdue accounts classified as serious credit infringement stays on an individual’s credit report for seven years

What Factors Cause Bad Credit?

  • Identity theft
  • High credit limits and balances
  • Credit and loan applications
  • Filing for bankruptcy
  • Repeatedly paying bills late
  • Missing loan and credit repayments
  • Defaulting on existing loans

What Are the Fastest Ways to Build Credit?

Building credit is an important step to take before deciding to apply for a home loan. Home loan lenders oftentimes recommend that potential borrowers increase bad credit scores before applying for a home loan for the best chances of approval. So, what are the fastest ways to build credit?

  • Clearing bad credit history
  • Ensuring that there are no disputable, contestable, or unfair credit history listings
  • Decreasing high credit card limits
  • Ensuring credit card balances are kept low
  • Paying all bills in full and on time every month
  • Eliminating or decreasing existing debt, including high credit card balances
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