Depending on how long your lender takes to report repayment of outstanding debt, the timeline for your credit score improvement on the credit report could be long or short.
How long does it take to rebuild a credit score?
There is no guaranteed or fixed time to rebuild your credit score to acceptable levels. The lower your credit score, the longer it may take to recover. For example, if your present credit score is between 650 and 700, it can take a few months to arrive at 750.
In general, it may take 4-12 months to attain a good credit score that makes you loan-eligible. You must aim for a credit score of 750 to have a good chance of easily qualifying for future credit facilities.
There is no shortcut to improve your credit score immediately. Just like a health report, improving a credit score requires patience, changes in lifestyle, self-discipline, etc. Once you attain a good credit score, the benefits are life-long.
How to get your credit score up?
Here are some tips on getting your credit score move up faster:
- Ensure low credit utilisation on credit cards
- Improve repayment track record
- Try to maintain a good credit mix including secured and unsecured credit
- Retaining old credit accounts also have a positive impact on credit score
- Regular check on your credit report can also help to identify any errors which may impact your score
- Appropriate usage of available credit by ensuring credit discipline can also help build up credit over time