Moving from a 500 to a 700 credit score can feel challenging, especially when several factors may have caused your score to drop. These reasons can vary, especially if you were not actively working toward building an excellent score. If you are genuinely looking to rebuild your credit properly, installment loans can be one of the best options. Since you already have bad credit, many traditional banks may not approve installment loans for you.
To support individuals who are truly trying to improve their credit, we, as a direct lender, offer installment loans for all credit types. Our goal is to give everyone a second chance to rebuild their credit, from poor or fair to good and excellent.
Fast Overview:
- Moving from a 500 to a 700 credit score usually takes 6 to 24 months.
- Installment loans build credit through consistent, on-time payments.
- Compare installment loans vs credit cards to choose the better option.
- Know the pros and cons before using installment loans to rebuild bad credit.
What is a Credit Score?
A credit score is a three-digit number that represents your creditworthiness, or how responsibly you manage borrowed money. Usually ranging from 300 to 850, this shows how reliably you repay borrowed money. It helps lenders, banks, and financial fund providers decide whether to approve a loan, credit card, or installment loan, and on what terms.
Your credit score is calculated using information from your credit report, including your on-time payment history, total debt, credit utilization, length of credit history, types of credit used, and recent loan applications.
In simple terms, a higher credit score means stronger financial trust, high approval chances, and lower interest rates, while a lower score may limit options or increase borrowing costs. Credit scores are widely used for personal loans, installment loans, auto loans, and even rental or utility approvals.
How Long Does It Take to Raise a 500 to 700 Credit Score?
If you’re wondering “How long does it take to rebuild credit from 500?” or “How fast can a credit score move from 500 to 700?”, the answer largely depends on you. Your repayment ability, financial discipline, and overall credit behavior. On average, improving a credit score from 500 to 700 can take anywhere between 6 and 24 months.
Typically, credit scores may increase by 10 to 30 points every three months with consistent, responsible repayment. Over time, this gradual improvement can help your score reach 700 or higher within 24 months.
Smart Tips to Go from 500 to 700 Faster
- Pay Every Bill on Time, Without Fail
Payment history has the biggest impact on your credit score. Even one missed payment can slow your credit progress, so set reminders or autopay to maintain consistency. - Reduce Your Credit Card Balances (Lower Credit Utilization)
Keep your credit card usage below 30% of your available limit. Paying down balances quickly can lead to faster score improvements. - Check Your Credit Reports and Fix Errors
Review your credit reports frequently for incorrect late payments, duplicate accounts, or outdated negative items. Disputing errors can boost your score faster than expected. - Avoid Unnecessary New Credit, Minimize Hard Inquiries
Each hard inquiry can temporarily lower your score. Apply for new credit only when it truly supports your credit-building goals. - Tackle Outstanding Negatives, Collections, or Past-Due Debts
Paying off or settling collections and overdue accounts shows lenders you’re taking responsibility, which positively influences your credit profile over time.
Is an Installment Loan Better Than a Credit Card for Bad Credit?
Installment loans help you improve your credit score from 500 to 700 in the best way. Whereas credit cards don’t, let’s compare how.
| Feature | Installment Loan | Credit Card |
| Approval with bad credit | Easier | Harder |
| Utilization impact | Low | High |
| Payment structure | Fixed | Variable |
| Risk of overspending | Low | High |
| Credit rebuild speed | Stable | Slower if misused |
Pros & Cons of Using Installment Loans to Improve a 500 Credit Score
Pros
- Builds payment history quickly
- No hard credit check at CashAmericaToday
- Flexible repayment terms
- Same-day or next-day funding
Cons
- Higher APRs than prime loans
- Requires strict payment discipline
- Not a “quick fix,” takes months to years
Consistent repayment plays a key role in improving a credit score from 500 to 700 using installment loans. Before borrowing, compare installment loans with credit cards and understand the credit score improvement timeline. Once you follow smart credit-building strategies, you can borrow with confidence.
At CashAmericaToday, you get same-day funding with quick approval. Having stable income proof helps you secure installment loans for bad credit in the US, and responsible repayment over time helps raise your credit score from 500 to 700. Quick approval, same-day funding, and no credit check are some of our key benefits. However, a high interest rate is an important factor to consider before borrowing a loan.