How long does it take to improve your credit score?

Since the credit score is based on consistent performance, one can assume you need to give yourself minimum six months for your score to show significant improvement, and sometimes the entire process can even take up to a year.

After you have identified you have a low credit score, you may subscribe for credit improvement services offered by various financial services companies or approach the lender to pay off your past dues. The first thing you need to do is to get your outstanding dues from the lender and pay them back in full. After having made the repayment, get a ‘No Due Certificate’ which confirms that you have cleared all the dues.

After making the payment, the lender will report your payment details to the credit bureaus who keep a record of your credit activities. Upon receiving the information from the lender, the bureaus will remove the negative issues from your account and update the latest payment details on your record. You have now successfully moved away from having bad credit. However, this is just the beginning.

For example, if you have a credit score of 480 at the time of removing your negative account, your credit score will remain the same in the future unless you have an active loan or credit card. On repaying the current loan and credit card bill consistently, you can improve your credit score considerably. A steady increase can be witnessed on being regular with repayment.