Consolidate expensive debt to reduce interest, lower payments & stop late fees

Access the money tied in your home to get great consolidation loan rate from leading UK lenders

How long will it take to rebuild my credit rating?

Thousands of people have to start rebuilding their credit report every year. Missed or late payments on loans or credit cards, mortgage arrears, defaults or County Court Judgments (CCJs) can all have an adverse effect on your credit rating.

So, if you’re in a position where your credit rating isn’t as good as it could be, it may be time to start repairing your financial reputation. But, how long does this process take? Keep reading to learn more.

Thousands of people have less a than perfect credit rating

If your credit rating isn’t as good as it could be, you are not alone. Credit Action reports that one person is declared insolvent or bankrupt in the UK every 63 seconds on a working day. 1,443 Consumer County Court Judgments (CCJs) are issued every day while Citizens Advice Bureaux in England and Wales dealt with 8,551 new debt problems every working day during the year ending March 2012.

Each of the above factors will contribute to a fall in your credit rating. While bankruptcy, CCJs or defaults may have a more significant impact, even the odd missed payment on your credit or store card can have a damaging effect on your credit worthiness.

If your credit rating could be improved, now is the time to start. But, how long does this process take?

How long does it take to repair my credit rating?

Repairing your credit rating is not a simple, quick process. The amount of time is takes to re-establish your credit score will depend on the severity of the financial issues you have experienced in the past.

For example, a bankruptcy order, an Individual Voluntary Arrangement (IVA) or a County Court Judgment (CCJ) will remain on your credit file for up to six years. This will have a significant and negative impact on your ability to obtain credit, whether that is a mortgage, loan or credit card. In the event that you are accepted for credit it is very likely that this will be at higher interest rates than an ordinary borrower.

Satisfying your CCJ or having it removed on appeal can be a way to ensuring your credit file is immediately improved, but it may still take several years for the effect to wear off completely.

If your problems are less severe, then it may be possible to repair your credit rating more quickly. There are several easy ways that you can instantly improve your credit rating. These include:

  • Ensuring you are registered on the Electoral Roll
  • Correcting any errors or mistakes on your credit file – for example updating your personal information or current address

Correcting simple errors and mistakes can improve your credit rating within a matter of 2-3 months. However, if you have missed payments or paid late in the past it could take several months of you making regular payments to improve your credit score.

It would not be unusual for it to take 12-18 months before your credit rating had significantly improved if you’ve experienced minor problems in the past.

Share/link this page, so more people become better at managing their debt. Also if you need a secured debt consolidation loan, fill this form.