How Long Does It Take To Improve Your Credit Score?

How Long Does It Take To Improve Your Credit Score?

Having good credit proves your trustworthiness to lenders and creditors. Not only does it improve your chances of getting a loan, but you’re also more likely to get it on more favorable terms.

So if you’re planning to take out a mortgage or apply for any other type of loan in the near future, it’s best to start thinking about your credit score now.

While there’s no secret formula for increasing your score overnight, there are some steps you can take to improve your score within a month or two.

In this post, we’ve outlined these steps—along with the time it takes for each.

Correct errors your report

Correcting errors on your report is a fairly quick and straightforward way to improve your credit score. Start by reviewing your credit report thoroughly and checking for errors. All three large credit bureaus—Experian, Equifax, and TransUnion—offer one free copy of your credit report once a year.

If there are identity errors such as credit cards not being marked, then you can easily get it corrected within a month. If there’s an issue on one of your accounts, then it will take about 30-90 days to fix and involves a lot of back and forth between yourself, your creditor, and the credit bureau.

Settle with delinquent accounts

If you have late payments on any of your accounts, settling them could boost your score quickly. This will continue to show up on your credit history for seven years, and indicates to future creditors that you have the ability to pay back your loans.

However, if you have any payments that are over six years old, credit repair consultants recommend that it’s best to leave those accounts alone. Repayment will re-age those accounts—once re-aged, they will show up on your credit history for another seven years.

If you have late payments on any of your accounts, settling them could boost your score quickly.

Bring down your credit utilization ratio

The credit utilization ratio is the amount of money you spent compared to your credit limit. For example, if the combined credit limit of all your accounts is $10,000 and you spent $8,000 of it, then your credit utilization ratio is 80 percent.

Bringing down this ratio shows creditors that you practice safe spending. Moreover, it makes up a large portion of your FICO score, so keeping it low can boost your score instantly.

Choose the Credit Repair Specialists

If you’re looking to build and maintain your credit long-term, a credit repair specialist can help. At Oak Credit Repair, we offer quick credit repair services in the USA.

For more information, give us a call at (888) 625.2264 or drop us a message online.

 

 

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