How long does it take a credit score to update?

Your credit report is a record of your credit history. It allows lenders to see how you’ve handled credit in the past and allows lenders to assess the level of risk in lending to you based on your history. Your credit report contains information such as the type of credit you have applied for, and your repayment history. It will also show a lender bankruptcy or a default in your name.

However, your credit report doesn’t stay the same. It is a constantly changing record that reflects how you use credit throughout your life.

Read on below to find out more about how long it will take your credit score to update.

How long does it take a credit score to update?

When you take out a line of credit, such as a credit card or a loan, it gets recorded by your lender for their records. Generally, they will record the type of credit they have approved, and how much they have lent to you. This could be the size of your loan or the limit on your credit card.

However, you don’t have to take out credit for a lender to make a note of you. Lenders will also record anyone who applies for credit, regardless of if accepted or rejected. This information will then be passed on to the credit reporting bodies.

Once you are approved for a loan or a credit card, your lenders will also continue to keep a note of whether you pay your bills on time.

Different lenders report to the credit bodies at different times. Each lender may have its own reporting timeline. Some lenders may report at the start of the month, while others could choose to report closer to the end of the month. This means that your credit score, and file, may update at different times. It could be best to keep an eye on your credit score if you are waiting for change to take effect.

How can I fix my credit score?

Data on your credit file will generally be held for five years. However, the length of time will vary depending on the type of information, and where it came from. A credit enquiry to a lender, for example, may stay on your credit report for five years, regardless of whether you’re accepted or rejected by a lender.

If you’re looking for ways to fix your credit score, you might try:

Making payments on time – Making your repayments for your loans and credit cards on time will positively affect your credit score. You should also try to pay your utility bills on time too. If you have a bill that is more than $150, and is at least 60 days overdue, then a default could be listed on your credit report. A default will stay on your report for five years, and can directly affect your credit score.
Avoid too many late payments – Consecutive late payments to the point where debt collection agencies are involved with you can negatively impact your credit score.

Avoid negative information on your credit report – Defaults, certain court judgements and excessive credit enquiries may have a negative impact on your credit score so it’s best to try and limit them from happening by staying on top of your repayments.
Limit credit applications – Applying for too many forms of credit in a short space of time can harm your credit score by creating too many hard inquiries. Hard inquiries may remain on your credit report for two years. It may not matter what type of credit you apply for, or how much you’re asking to borrow. Try to space out credit applications when you really need them.
Ensure your credit file is accurate – It’s possible that your credit file could have errors listed on it, so it’s important to make sure everything listed is accurate. If there’s a mistake on your report, you may need to contact your lender and the credit reporting agency that listed the error.

How we can help

Tiger Finance can help you to find out your credit score. Try our credit score calculator today to find out your numbers. If you’re looking for a loan, we can help to get you funded in four easy steps. You will have a free consultation with one of our specialists, and we will tailor-make you a loan. We will negotiate with lenders on your behalf before you are approved. Call to speak to one of our loan specialists today for your free consultation.