Poor credit score? Here’s how quickly you can rebuild it and what you need to do

Amit Verma, 38, a business development manager from Delhi, had always prided himself on maintaining a stellar credit score. With a score of 800, he had no trouble securing loans at competitive rates. But things took a turn when he decided to take a personal loan to renovate his home, and simultaneously maxed out his credit cards during a family medical emergency.

He missed a couple of EMI payments and didn’t realise the full impact until his credit score dropped to 690 within just three months. Shocked, Amit began researching how long it would take to rebuild his score—and what exactly he needed to do.

Here are the common reasons that result in a sharp drop of credit score:

Missed EMIs or credit card payments

High credit utilisation (above 30% of your available limit)

Taking on too much debt too quickly

Closing old credit cards (shortens your credit history)

Multiple hard credit inquiries in a short time-frame

A credit score above 800 is considered excellent and offers better terms on loans, but a drop of 100 points can push you into a less favourable borrowing category. According to Adhil Shetty, CEO of BankBazaar.com, “It can take anywhere from a few months to two years to rebuild your score, depending on the cause of the drop and how consistently you work to fix it.”

Credit scores don’t fall overnight. A 100-point dip could be triggered by various factors like a missed EMI, high credit card utilisation, a spike in borrowing, or even closing an old credit account. The sharper the drop, the longer it is likely to take to recover.

To rebuild your score, focus on the fundamentals. Pay all EMIs and credit card bills on time as payment history is a major part of credit score calculation. “Keep your credit utilisation under 30% and avoid taking on new loans unless absolutely necessary. If you have an old credit card, retain it, as it boosts your overall limit and credit history. Check your credit report regularly and dispute any errors. Remember, consistency is key to improving your credit score,” said Shetty.

Therefore, if you stay disciplined, your score will start improving in 6–12 months and could return to 800 in under two years.