The answer depends mostly on how the credit score was obtained and what you’ve done to fix it.
If your credit score is brought down by an account in collections, foreclosure, bankruptcy or anything else that has to do with late payments and defaults, then yes, it may be temporary.
A person’s credit score can easily rise over time as they start making payments on time and using their credit responsibly. Generally, if someone starts becoming good about paying off debt every month and only takes out loans when needed (and pays them back), their credit will go up accordingly. Well-managed debt like mortgages, car loans and sometimes student loans helps people maintain high scores, while good management during periods of unemployment also means a high score.
However, if your credit score is low because of a high credit utilization ratio or too many inquiries, it may be more difficult to rebound. In this case, you’ll need to work on paying down your balances and being more selective about when you apply for new credit. If you’re not sure where your credit utilization ratio stands, you can get a free report from Experian. Sometimes people have low scores due to mistakes on their reports that they can take care of relatively easily. For example, if there’s an incorrect account listed on your report or a missed payment that’s been reported wrong, fixing these errors can help boost your score relatively quickly.
In the end, whether or not having a low credit score is temporary really depends on the individual. If you’re proactive about fixing any credit mistakes and start using your credit responsibly, your score should go up over time. However, if you don’t take action, a low score can definitely stay with you for a while. So it’s important to be mindful of your credit rating and work to improve it whenever possible.
If you’re currently struggling with a low credit score, here are some steps that may help:
- Check your credit report for any errors and dispute them.
- Start making all of your monthly payments on time, every time.
- Try to keep your credit utilization ratio low (ideally below 30%).
- Don’t apply for new credit unless you really need it. Consider bad credit mortgages only to settle smaller debt with higher interest rates.
- Monitor your credit score and credit utilization regularly.
- Consider using a credit monitoring service to help you stay on top of your credit rating.
- Work on paying down your balances as much as possible.
- Keep up with your good credit habits, even when things are tough.
Credit scores aren’t permanent – they can go up or down depending on how you use your credit. If you’re proactive about fixing any credit mistakes and start using your credit responsibly, your score should go up over time. However, if you don’t take action, a low score can definitely stay with you for a while. So it’s important to be mindful of your credit rating and work to improve it whenever possible.