Building a good credit rating is important because it affects your ability to borrow money. The good news is that not only can you check your credit score for free, but you can also improve it. In this post, we’ll look at how long it will take to improve your credit score and some steps you can take.
How Long Will it Take to Improve My Credit Score?
According to the Money Advice Service, your credit score will slowly improve over time as you continue to make on-time payments.
However, there is no ‘hard and fast rule’ on how long it will take to reach the level you would like it to. For example, if you’ve had large debts or a bankruptcy, then it will take longer to rebuild your score than it would for someone who has only missed a handful of payments.
In addition, it’s worth noting that it often takes 3-6 months to calculate your first credit score. You’ll need to make a small payment on your credit card each month and then pay it immediately to prove that you can be responsible with the money you’re borrowing. Then your score will gradually build.
But, by keeping a close eye on your credit score and checking it regularly, you’ll also be able to spot issues affecting your credit score and rectify them. Checking for mistakes and getting on the electoral roll are just a couple of examples of ways you can start to improve your score.
Larger issues may take longer to resolve. If you have negative marks on your credit file, then they will usually remain on your file for 6 years. After this, they will be deleted.
Factors that Improve Your Credit Score
Although the period of time that it will take your credit score to improve will vary based on your specific circumstances, the factors that will improve your score over time remain constant.
You should:
- Deal with any late payments
Catching up on late payments is important for improving your credit score. If you can catch up with your payments and then continue to make them on time for an extended period, then your credit score will improve.
- Reduce credit balances
A factor called ‘utilisation’ is also important. This is the balance-to-limit ratio of your credit. Ideally you should pay your credit card balances in full each month, or come as close to them as possible.
- Avoid your overdraft
If you go into your overdraft or miss a payment, then there will be a negative impact on your credit score. As a result, you should only take out loans for important events. Only ever borrow what you can afford to pay back, and don’t overspend.
Although there’s no set rule on how quickly your credit rating will improve, if you follow these tips, you’ll start taking steps in the right direction.
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