Having a poor credit score can impact whether you get approved, and therefore the rate of interest that applies, whether you would like to secure your first home, purchase a car or seek finance for a special reason. So, how long does it take to repair your credit score and credit rating if you would like to, and what are you able to do to enhance it? When you apply for a loan, your credit score can affect the process of approval, providing lenders a sign of your creditworthiness.
How to repair a bad credit score?
First things first, you cannot play with the correct information on your credit report even if it’s negative. But, you can request to fix information that is incorrect. You can contact the relevant credit agency and it will be done as a free service .
What you can request to have fixed includes:
Credit reporting agency errors. Like:
○ name, date of birth or address
○ any debt that is listed twice
○ amount of a debt is updated wrong
Credit provider errors. Like:
○ incorrect information about payments (e.g. any payment was overdue for anynumber of days, but it wasn’t)
○ Not informing you about an unpaid debt
○ when you are in dispute, listing a default
○ not updating if a payment plan is agreed
○ Not updating if contract terms are changed
○ mistakenly creating an account as a result of identity theft