Improving your credit score might seem like a complex and time-consuming process, but it doesn’t have to be. It’ll take some patience but if you make the effort, you’ll be able to see your score go up quite quickly. The question is, just how long does it take to improve your credit score?
The answer to this question won’t be the same for everyone. The length of time it takes to improve your credit score will depend on a number of factors. These include what your credit score is now and how much it needs to improve. It also depends on your financial situation.
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How quickly is a credit score updated?
Your credit score is updated by the Credit Reference Agencies. The three main ones in the UK are Equifax, Experian and TransUnion. Credit scores are created from the credit reports held with these agencies. They’re updated every time one of two things happen, these are:
1. A company you have an account with reports your activity
When a business reports your activity to the credit bureaus, your credit score will update. However, it may not happen on the day you make the transaction.
For example, let’s say you have a credit card that you pay off in full at the start of the month. The credit card company will update your credit file to reflect this. But companies often report all their credit card account activity at the same time each month. If their reporting date is at the end of the month, that’s when your credit score will update.
2. When you request an update
If you ask one of the Credit Reference Agencies for an update to your credit score, it’ll be done for you. If you sign up to get your credit score for free, this will be done every 30 days.
How long does it take for your credit score to recover after it has gone down?
The length of time it takes for credit scores to recover after they’ve gone down depends on certain factors. These include:
- How much your credit score has dropped by
- What caused your score to drop
- What your financial situation is and what you do to improve it
Generally, if you’re doing what you can to repair your score, you should start to see an improvement in about 6 months. That’s why you’re better off being careful and looking after your credit score to prevent it from going down.
What factors impact your credit score?
Your credit score can be affected by a number of factors. Some will have a bigger impact on it than others. Here are some of the things that can cause your credit score to change.
1. Missed repayments on your payment history
One of the most important factors that can impact your credit score is your payment history. Missed or late payments will have a negative impact on your score. By making payments on time, over the course of a few months your credit score will rise.
2. Not registered on the electoral register
Being registered on the electoral roll helps businesses to identify you. Your credit file will show if you’re registered or not. So, if you not on the electoral roll, get signed onto it. It’s an easy way to give your credit score a quick boost.
3. No credit history
If you haven’t borrowed any money before you won’t have a credit history. With no credit history you’ll struggle to borrow money and you’re likely to have a poor credit score. Your best option is to take out a credit builder credit card. You use these like a normal credit card but the interest rates on them tend to be high.
As long as you pay them off each month, they’ll help to build your credit history and score. You should start to see a difference after about 6 months.
4. Types of debt taken
Having different types of debt can help improve your credit score, but only if handled carefully. Whether its loans, credit cards or a mortgage, it’s good to show that you can handle a mix of credit.
How long do negative marks stay on your credit report?
Negative marks will stay on your credit report for a set period of time depending on what the mark is for. While these marks are on your report, they’ll impact your credit rating. The table below shows how long some of the negative marks stay on your credit file.
| What the negative mark is for | How long it stays on your credit report |
| You made an application to borrow money | Up to 12 months |
| You made a late or missed payment on one of your debts | 6-7 years from the date it happened |
| You received a default or county court judgement | 6-7 years from the date it was issued |
Best ways to improve and raise your credit score quickly
There are things you can do to help raise your credit score. It won’t go up overnight, but follow these tips and after a few months you should start to see it go up.
1. Pay your bills on time
Making late payments is one of the biggest factors that cause a poor credit score. If you’ve got credit cards, make sure you pay at least the minimum amount when its due. Keeping on top of your repayments will help your credit score.
2. Reduce your credit utilisation
To help your credit score, try to use around 30% or less of your credit limit. For example, keep your credit card balances below your limit. Doing this shows you’re not desperate for money and can manage it well. It helps to improve your credit score.
3. Monitor your credit report regularly
If you don’t know what’s being reported on your credit report, you won’t know what you need to do to improve it. Keep a regular check on your credit report so you can see if it’s gone up or down. That way you can see what affects it and you’ll know how to avoid it happening again.
4. Consider consolidating debts
If you’ve got lots of debts, you might find them hard to manage. Bringing them all together in one loan can help you in more ways than one.
- Moving your debt to an account with lower interest can save you money
- By paying off one loan instead of 2 or 3, you may find your repayments are lower overall and easier to manage
- By keeping on top of your repayments it’ll help improve your credit score
Final words
Improving your credit score isn’t an overnight fix, but with patience and some effort you’ll soon see your credit score raise. By doing things like paying your loans like short term loans, bad credit loans, etc., on time, registering on the electoral roll, and borrowing below your credit limits, you can help it improve faster.
If you monitor your credit report, you’ll not only see what affects it, but you’ll also see the progress you’re making.
Your credit score is important as it shows how well you manage money. It makes a difference when you need to open new financial accounts or borrow money. That’s why looking after your credit score is worth doing. If you don’t know what your score is, find out and start looking after it today.
Disclaimer: The information given above is provided for reference only. This is not financial advice.