How much time does it takes to Improve Credit Score?

If you have a poor credit score, it not only rejects possibilities of receiving loan and credit card, but takes a lot of time say, 12 to 18 months to get the credit score back to a number which will instil confidence in lender to consider you as an eligible candidate for extending credit. However, it is a must to repair damage to your credit score, even if the points go down by a few numbers only.

It is hard to predict a specific time period to enhance credit scores, but credit improvement can be achieved by being consistent in following habits that will give a good credit score. Here are some of the habits to follow for repairing your credit score, and bringing it to decent figures.

  • Take a loan of small amount as soon as you are sure you can make timely payments. Initially you will get offers of a high interest rate if your credit score is really bad, but taking the loan will allow you to follow credit line, and when you do get a loan approved, stick to regular payments.
  • If you have inactive or no credit cards, then you start using or take one, respectively. Again it is important to use the credit cards wisely, as in never cross the credit limit or miss payments. Pay the bills in entirety and not just make minimum payments.
  • To utilize credit cards, pay for all the bills like that for house, electricity, phone, internet, etc. These bills cost often lower than making huge purchases of materialistic in nature. Thus, there are higher chances of not defaulting on such bill payments with cards.
  • Check your credit report on time to see if there are any errors. If your credit score has suffered, then checking CIR becomes much more essential, as any mistake in the report can lower your CIBIL score further. Raise dispute with CIBIL whenever necessary.