A bad credit score won't hold you back forever
How long will it take to improve a bad credit score?
If your credit score needs improvement, it doesn’t always need to be a long road to recovery.
Rebuilding your credit score from scratch can take time. However, there are ways you can speed up the process and start improving your score today.
Read our guide to discover how long it could take you to rebuild your credit score.
How long will it take to turn a bad credit score around?
When it comes to fixing a bad credit score, there is no set time frame. It all depends on how badly your credit was affected and what you consider a “good” credit score to be.
For example, if your credit score is rated as “very poor” and you want to hit the “excellent” mark, it could take years to rebuild your credit and reach this point. However, if your credit score is just below “average”, you could achieve a good credit score within a matter of months.
It also depends on the nature of your credit history. A one-off late repayment won’t have the same impact as a default or a CCJ on your credit file. Lenders will look at whether your repayment issues escalated, and this will affect how long it takes your credit score to bounce back.
Bad credit won’t always hold you back
If you’ve missed payments in the past, they will appear on your credit report and could negatively impact your credit score. However, they won’t hold you back forever.
Information about how you manage your accounts and repayments will be automatically cleared from your credit file every six years. So, if you missed a repayment six years ago, lenders will no longer be able to see this on your report. Your credit report will effectively be wiped clear and you’ll start with a clean slate.
So will it take six years to improve my credit score?
No, you can improve your credit score today – even if previous mistakes are still lingering on your credit file. While it takes six years for them to be removed, that’s not to say your credit score won’t improve until then.
The more time that passes since you last made any errors, the more likely lenders are to trust you again. And if your mistake was more of an isolated incident than a repetitive pattern, lenders could be more likely to overlook it.
How can I improve my credit score sooner?
Signing up to vote can quickly boost your credit score. That’s because having your name on the electoral roll means lenders can easily confirm your identity and rule out fraud when you apply for credit. Plus, if you’ve lived at your address for over three years, it can suggest your living situation is stable – something lenders love to see.
Another way to quickly improve your credit score is to reduce your credit utilisation – in other words, use less of the credit that’s available to you. Lenders typically like to see you use around 25% or less of your combined credit limit. To lower your credit utilisation, you could consider making overpayments on credit card or loan, or limiting your spending for a while.
If you’re looking to improve your credit score sooner rather than later, these methods could help in a matter of weeks.
Improving your credit over time
Above anything else, lenders like to see a long-term pattern of responsible borrowing. It can take time to prove that your financial responsibility is consistent, and not just a one-off streak.
As a general rule of thumb, lenders like to see you manage a credit account for over a year without missing any repayments. Once you’ve shown you can consistently meet your repayments, your credit score should start to improve.
Along with sticking to your repayments, it’s also good to keep your credit utilisation low and avoid making lots of applications for credit. To help reduce your amount of applications, make sure you can check your eligibility before you apply.
Keep up with these good habits and your credit score should improve over time. The longer you stick to these habits, the better your credit score will be.
Helping you borrow with bad credit
Bad credit shouldn’t be a stumbling block when it comes to borrowing the money you need. At Evolution Money, we understand that your circumstances can change – and you should still have the chance to find a loan, even if your financial past isn’t perfect.
Speak to one of our friendly advisers today and we’ll look past your credit score to find a loan that suits your circumstances.
Think carefully before securing debts against your home your home may be repossessed if you do not keep up repayments on your mortgage or any other loan secured against it. If you are thinking of consolidating existing borrowing, you should be aware that you may be extending the terms of the debt and increasing the total amount you repay.
