According to recent surveys, the average person in the UK has a credit score sitting at right around 760. That places their credit score squarely in the “fair” category, which means it’s not quite as strong as it could be.
If you have “fair” credit or, worse, if you have “poor” or even “very poor” credit, you should commit to rebuilding it. A credit score that’s anything less than “good” or “excellent” is going to make it very difficult for you to take out loans as you move forward in life.
“How long does it take to rebuild credit?” is a question that people often ask when they’re getting ready to start the credit rebuilding process. The answer all depends on a number of factors, including everything from your actual credit score to your total number of debts.
Fortunately, there are some ways to speed up the process and give your credit score a quicker boost. Take a look at some tips below that will help you get it done.
Begin by Going Through Your Credit Report With a Fine-Toothed Comb
When is the last time you sat down and took a good, long look at your credit report? If it’s been quite some time now, you should make it a point to go through it as soon as you can.
The answer to the question, “How long does it take to rebuild credit?”, is going to depend largely on what kind of shape your credit report is in.
If you have one or two blemishes on it, rebuilding credit might not be as difficult as you think. But if it’s filled with negative marks from your creditors, you could very well have a long road ahead of you.
Dispute Any Errors You Find in Your Credit Report
Going through your credit report will shine a light on why your credit score is as low as it is right now. It’ll also help you to see the areas in which you need to improve to bring your credit score back up.
But there is also one other big benefit that will come along with taking a look at your credit report. It’ll let you know if you have any errors on it that are dragging your credit score down.
Believe it or not, about 20% of people have errors in their credit reports right now that are affecting their credit scores. Many of them don’t even realize these errors are there.
By inspecting your credit report, you can uncover errors and dispute them with the credit bureaus. That alone will bring down the amount of time you’ll have to wait to rebuild your credit back up to a respectable score.
Catch Up on Any Debts You’ve Been Unable to Pay
Have you fallen behind on paying down one or more debts? You’re probably going to find evidence of it in your credit report in the form of negative marks from your creditors.
These marks are going to take a huge toll on your credit score if you don’t do something about them. You should contact any creditors that are trying to track you down and get back on the right track as far as making regular payments to them.
Most creditors are willing to work with those who owe them money. They’ll help them catch up on their debts and report them as current on their payments to the credit bureaus once they start making payments every month again.
See If Debt Consolidation Would Be a Good Option for You
Are you buried under a gigantic pile of debt and feeling more hopeless than ever before about it right now? This debt is more than likely a big part of the reason why your credit score is on the lower side.
You’re free to call around to your various creditors to see what you can do to make your debt more manageable. But you’ll also have the option of consolidating your debt and attacking it that way.
Debt consolidation can help make the credit rebuilding process quicker by paying off all your individual debts and leaving you with one big debt to pay down. It’ll free up your “available credit,” and as long as you don’t use it, it’ll make you look more creditworthy and increase your credit score.
Avoid Racking Up More Debt While Rebuilding Credit
The more debt you have, the lower your credit score is going to be. There is no getting around this simple fact.
Yet, there are many people who will rack up debt while they’re trying to rebuild credit and pay the price for it. They’ll see their credit score move in the wrong direction when this happens.
You should steer clear of falling into this trap by avoiding new debt like the plague. Debt is only going to slow the credit rebuilding process down for you and make it even tougher to find the financial freedom that you’re searching for.
Keep Tabs on Your Credit Report and Watch Your Credit Score Go Up
While you’re going through the process of rebuilding credit, you should keep a close eye on your credit report. Over time, you should see negative marks start to fall off of it. You should also see positive marks take their place before long.
If you’re not seeing as much progress as you had hoped to, check out https://moneytrumpet.co.uk/the-complete-guide-to-credit-repair/ to learn more about credit repair. You may also want to enlist the services of one of the credit repair companies that can provide you with guaranteed credit repair.
So, How Long Does It Take to Rebuild Credit? It Might Not Be Long at All
Rebuilding credit can be a frustrating process for some people. They’re left asking, “How long does it take to rebuild credit?”, when they aren’t seeing results fast enough.
But it can also be a relatively quick process for others. In fact, it’s possible for people to do 30-day credit repair in some cases.
Either way, credit repair is something you’re going to have to do if you want to put your credit score into a better place. The sooner you start working on it, the sooner you’ll get it done.
Read our blog for more tips on repairing your credit and increasing your credit score.