The first thing I would tell you is the improvement of your credit score is NOT an overnight process. In some cases it could take as long as a year or more. In other cases it could take as little as 45 days. The key here is, when you say, how long does it take to improve credit score? What are your goals? Are you trying to increase your score by a certain number of points to meet a credit score requirement to make a purchase? Or are you trying to raises your score to the highest possible level to improve your overall financial picture?
So where do we start when looking to improve your credit score?
Step 1
Obviously you need to have a copy of your credit report to review. What exactly are you looking for when reviewing your credit report? The first thing you need to do is check your report for accuracy. Make sure that the information that is reporting is correct. Things like your name, address, social security number, employment info, residence. This information may not play a role in your score but remember this is your report and you want it to be accurate.
Step 2
The next thing you want to look for is any derogatory information that might be reporting. Things like late payments, collections or charge-offs. As well you want to check the public record section of your report to see if you have any judgments or liens reporting. If you have this type of information you may need to talk with a professional service to assist you in the possibility of removing these items.
Step 3
After you've checked for derogatory information reporting the next step is to check your debt to credit balances. In other words are any of your credit cards maxed out or over the limit? The rule of thumb here is to pay down your credit cards to 30% of the available balance in order to maximize your credit score. So if your credit limit is $1000.00, you want to keep your balance below $300.00. By simply doing this you can greatly increase your score in a short period of time, as long as there are no other issues with your credit report.
Step 4
Another item to look at is how many and what type active accounts do you have open? How many revolving accounts, installment accounts, store credit, secured accounts...etc. Mixture of credit also plays a role in having a good credit score. This is something that can take a little time to establish but something you need to be aware of. You may need to establish addition revolving accounts (2 to 3 seems to work well). Again, remember to keep your balances below 30%.
Conclusion
These are just a few on the things that will help you improve your credit score. The important thing to remember is that it's going to take some time but the effort will be well worth it in the long run. So the question really isn't, how long does it take to improve credit score, but what do I need to do to improve my credit score, then make the long-term commitment to just do it and everything else will fall into place.
Mark Bustamonte has been in the Credit and Debt Industry since 2003.To learn more about how you can improve your credit please visit How to Improve My Credit