How Long Does it Take to Improve Credit Score?

How Long Does it Take to Improve Credit Score?

Posted on April 29, 2022

Spend any time at all researching auto loans and car finance and you’ll see a lot about improving your credit score to get a lower rate. But how long does it take to improve your credit score? Exactly how do you go about it?

Our Dundas auto loan team takes it from here.

How long does it take to improve your credit score?

The exact length of time it takes to improve your credit score depends on where it’s at.

You can begin improving it within 3 months of taking action. Getting it from poor to good will take around 18-24 months depending on what actions you take.

If you have bankruptcy on your credit report, that will stay on for around 6-7 years depending on where you live. It will keep the credit score down but you can still take steps to improve it.

Improving your credit score is a process. There’s a lot that goes into credit reports and scoring and you have to do a little work.

Check your credit score

First’ you’ll need to know where you are. That means using TransUnion or Equifax to check your credit score. Check your entire credit report while you’re there.

Check the amount of debt owed, check all your payment history, check everything for errors and make sure the report is as accurate as it can be. If you spot errors, get them corrected by the organization that made the mistake.

Get a credit card and begin using it

If you don’t already have a credit card, get one. Use it for everyday expenses and pay it off in full each month. This will begin creating a positive payment history which will be reflected on your credit score within a month or two.

If you cannot qualify for a standard credit card, get a secured card. Set up automatic payments so you never miss a payment but make sure to pay it off in full each month.

Paying down debt

If you’re carrying a lot of debt, pay off as much as you can afford. The amount of credit you’re using will impact your credit score. Paying it down as and when you can will lessen that impact, which can help raise your score.

This may take time and won’t be easy but lowering your debt to income ratio will positively impact your credit score as well as make life more bearable!

Keep paying your car loan

If a car loan forms part of that debt, make sure to keep paying it. A spotless payment history will have a big impact on your credit score and any missed payments can stay on your report for a few years.

If you’re having trouble making payments, consider refinancing, selling the car or discussing the situation with your lender.

The time it takes to improve credit score isn’t quick and it isn’t easy but it is possible. If you need help refinancing, contact our Dundas car loan team and we’d be happy to help.

When you’re ready for a car loan, get in touch with the Dundas auto loan experts at Northway Ford for great deals on auto finance.

Be sure to connect with us on Facebook, Twitter, Instagram, or LinkedIn to stay up to date on our latest great articles!