The sudden return of student loan payments may aversely affect your credit score in a number of ways. If you’ve been relying on credit cards or loans to make ends meet, you may see your credit utilization rate rise, which will bring your score down. And if you’re dealing with missed payments or higher-than-usual debt, your credit score may take a major hit.

However, the good and bad news is you’re not the only one affected by student loan forgiveness ending. Let’s consider a few other options you can use to start rebuilding your credit.

Ways to Rebuild Your Credit

1. Secured Credit Cards

Secured credit cards are a great option for individuals with limited credit history. You’ll need to provide a deposit, which serves as your credit limit. By using the card responsibly and paying off the balance on time, you can begin to rebuild your credit score. However, secured cards often come with higher interest rates and limited credit limits, which may make it harder to significantly boost your score quickly.

2. Become an Authorized User

If you have a family member or friend with a solid credit history, you can ask them to add you as an authorized user on their credit card account. This allows you to benefit from their positive credit history. While this method can improve your score, it often requires trust in the person whose account you’re joining, and it might take longer to see substantial results.

3. Credit Builder Loans

Credit builder loans are designed for people with no or poor credit. They allow you to take out a small loan, which is placed in a savings account until it’s paid off. These loans report your payment history to the credit bureaus.

4. Pay Off Debt Strategically

If you have existing debt from student loans, credit cards, or other sources, paying it down strategically can help. Focus on high-interest debt first, or target credit cards with high balances to reduce your credit utilization ratio. However, without an established credit-building plan, this method alone may take a long time to significantly improve your score.

5. Regularly Monitor Your Credit Report

It’s essential to keep track of your credit report to catch any errors that could be impacting your score. You’re entitled to a free credit report once a year from each of the three major bureaus, and reviewing it regularly will help you spot any issues before they affect your credit.

How long does it take to rebuild 100 points of credit?

If you have missed payments or collections: It might take 6–12 months to see a 100-point increase as you improve your payment history and reduce your outstanding debt. If you’re using a credit-building product and focusing on lowering credit card balances and paying off debts, you might see a 100-point increase in about 3–6 months, especially if you were starting with a score in the lower 600s or high 500s.

If you’re ready to rebuild your credit and improve your financial future by an average* of 86 points then, MAGNUM by CreditStrong — the largest credit builder in the nation, offers a great solution. It should be noted that MAGNUM is not intended to build savings and is an option for those who have cash, but not credit.

MAGNUM is also Ideal for:

• Immigrants who have cash but haven’t yet built a substantial U.S. credit history.
• Divorcees who may have had credit affected by joint accounts and need to rebuild their individual credit score.
• Borrowers who are facing the financial burden of student loan payments and need an effective way to lower their credit utilization and rebuild credit.

How MAGNUM Helps Rebuild Credit After Student Loan Forgiveness Ends

The end of student loan forgiveness is not just a financial challenge—it’s an opportunity to improve your credit if you know how to manage it. Here’s how MAGNUM can help:

1. Reports to All Major Credit Bureaus
   MAGNUM reports your on-time payments to the three major credit bureaus helping you build a strong credit history. If you’ve been affected by student loan payments and higher debt, MAGNUM will show your commitment to repaying loans, which will gradually improve your credit score.
2. Focuses on Building Your Credit, Not Savings
   Unlike other credit-building programs that combine savings with credit building, MAGNUM is designed to focus solely on improving your credit score. This is especially beneficial if your primary concern is repairing or rebuilding your credit after the resumption of student loan payments. No distractions, just a direct path to better credit.
3. Low Interest Rates and Affordability
   MAGNUM offers low-interest rates, so you don’t have to worry about accumulating expensive interest while working to rebuild your credit. With the added financial pressure of student loans, MAGNUM’s affordable terms make it an ideal choice for anyone looking to improve their credit without risking further debt.
4. Reduces Credit Utilization
   Credit utilization, which accounts for 30% of your credit score, is likely to rise as you take on more debt due to resuming student loan payments. MAGNUM helps reduce your credit utilization by providing a flexible credit line that you can pay off monthly, which will directly improve your credit score.
5. Perfect for Those With Limited Credit History
   If you’re an immigrant, a divorcee, or simply someone who has struggled to build U.S. credit history, MAGNUM is a good solution. MAGNUM helps establish or rebuild credit without needing an existing credit history, making it ideal for individuals who need to start from scratch or improve their current standing.

There’s no hard credit pull, check out what MAGNUM plan is right for you and get started on rebuilding bigger credit today!

*Individual results may vary

CreditStrong helps improve your credit and can positively impact the factors that determine 90% of your FICO score.

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