Your credit score is often all that is standing between you and that next loan. This is the number that is given, based on the listings on your credit file. Too many negative listings will result in a low credit score, leaving many lenders unwilling to take a chance on you. A low credit score reflects a poor borrowing history, but it is very easy to fall into this trap.
Often, things happen that are beyond our control. From getting into an accident, to paying for medical bills, life is full of surprises. We shouldn’t let a low credit score hold us back. So, how often does your credit score change? Knowing this will determine how long it might take you to get out of bad credit and into that next loan even faster.
How Often Does Your Credit Score Change?
There’s no doubt that improving your credit score is a huge waiting game. This is why so many question, how often does your credit score change? When you make changes in an attempt to improve your credit score, you are hoping to see that reflected as soon as possible. In order to answer the question, how often does your credit score change, we need to take a look at credit reports. Your credit score is based off the information in your credit report, so you won’t see a change unless this is updated.
How exactly does your credit score work?
Every loan you take out is documented. If you fail to meet repayments, or other factors, these are marked by your lender as a negative listing on your credit file. This means that any listings are usually added to your credit score monthly, when the repayments are due.
If you fail to make them, or they are late, this will be marked as a negative listing. Of course, there are many other factors that impact your credit score, and it’s important to look at them all.
What Affects Your Credit Report?
There are many different factors that affect your credit report. Here are some of the things you need to look out for:
- Repayments: if you fail to make repayments on time, this will be marked as a negative listing.
- Defaults: if you default on a loan completely, again this will reflect on your credit score.
- Type of credit: if you always take out the one type of credit and don’t expand into different types, this can have a negative impact on your credit score.
- Credit utilisation: using too much of your available credit also doesn’t look great. You want to be sitting at less than 80%.
- Court judgments: going to court over a debt won’t reflect favourably on your credit score.
- Bankruptcy: as you would expect, this can have a long-term impact on your credit score.
Each of these factors affects your credit score in a different way. At the same time, each one will stay on your credit file for a different amount of time. For example, a default on your loan can stay on your credit file for up to five years.
How Often Does Your Credit Score Change With A Bad Credit Score?
A bad credit score does not make you a bad person. If you are looking to improve your credit score, there are plenty of things you can do. Of course, it’s important to take a look at your credit report first and work out what negative listings you have on there.
This is the first step in determining how often does your credit score change. Different listings will stay there for different lengths of time. Go through each one and work out when it is likely to disappear from your credit file, and in turn, your credit score.
In the meantime, work on improving your credit score. When making positive changes to your borrowing behaviour, you can see results much faster. Here are some ways to do that:
- Make your repayments on time.
- Expand your types of credit.
- Don’t max out your credit cards.
- Ask for help if you are in trouble. Friends and family may be all too willing to help you out if you are in a financial bind. This can be a better option that taking the hit on your credit report.
With just a few simple changes, you will be able to see results within as little as month.
Boosting Your Credit Score
Looking to give your credit score the immediate boost it needs to get it back on track? Chat with the team at Clean Credit today. We will take a look at your credit file and provide you with solutions. With our help, you can wipe your slate clean and get ready to take out that next loan.