How Long It Take To Improve Credit Score
Improving your credit score is not an overnight process, it requires both time and patience. There is no easy way to improve or repair your credit score. Therefore, getting impatient after seeing your low credit score is not a way out, but applying a correct approach in getting it increased will be a wise and responsible decision.
The changes in your credit scores are based on the frequency by which your report is updated. Once your credit report is updated. The only thing you can do is to watch your credit score to see how it changes and continue making the right credit moves.
It can take anything from 4-12 months to improve your score, depending on your individual situation. The closer your score is to 750, the less time it will take to improve your credit score. If your score is on the lower end and less than 600, then it will naturally take a longer time to increase your score to 750 and above.
People with low credit rating face difficulty while getting approved for any credit product, as every financial institution thoroughly checks your credit report and specifically credit score, before offering you any lending product. A bad or low credit score can hamper your creditworthiness and can further increase your financial problems. Your credit score is increased or decreased because of several factors, such as debt amount, payment history, new credit and length of credit.
What is the Purpose of Credit Scores?
The primary motive of your credit scores or report is to assist lenders to decide the creditworthiness of a borrower. Hence, your credit score plays an important role in fulfilling your financial needs, since it functions as the foremost judging aspect for the lender. The better the score, the higher are your chances for your credit card or loan to get approved.
How to Improve Your Credit Score?
Below given are the best ways to quickly boost your credit score-
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Check your credit reports regularly and rectify the errors in it:
The errors on your credit report can be the result of mistakes made by others. Therefore, you need to check your free credit report online and ensure that there are no errors in it. If there are any errors, in that case, you can contact your lender or credit bureau to fix the errors in your report at the earliest.
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Make all your due payments on time:
You should always aim to pay your outstanding credit card bills and loan EMIs on time. Even a single missed payment can have a huge impact on your credit rating which can affect your eligibility for credit products.
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Do not overutilize your credit card limit:
Your credit rating could be impacted if your credit card balance is over the limit. An over-the-limit credit card balance increases your credit utilization and could lower your credit score. Ideally, you should keep your credit utilization ratio up to 30%.
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Pay off your existing credit card debt, if any:
If you have any unpaid credit card, it is highly recommended that you pay your outstanding bills off immediately. Paying off all your existing debts could improve your credit score fast.
So, your credit scores keep on changing based on your current situation. If you don't have an optimum credit score right now, you can take the above-mentioned steps to improve or boost your credit rating to avail of the best offers on loans and credit cards.
