How long does it take to fix your credit rating?

Guest blogger Mario Lupori of aqua credit cards look at how quickly you can get your credit rating back on track.

Spring is a time of year that many of us look to make improvements to ourselves and our lives. Sorting out your finances is one of the most popular areas to look at.

And key to improving your financial lot is getting on top of your credit rating.

Why your credit rating matters

Many don’t realise how important our credit rating is to our finances overall, nor do they understand the impact a lower score can have on access to the best tariffs for many everyday products and services, such as utility bills, which can account for a large part of our monthly budgets.

Worryingly, our research has found that more than half of us are currently at risk of being declined access to credit by the mainstream lenders.

So how quickly can you improve your position and become more attractive to those traditional lenders?

How quickly can I repair my credit rating?

At aqua we have found that approximately two thirds of our customers see improvements to their credit rating in just a year. Through careful management of their credit card, people can demonstrate that they are credit worthy and can increase their score as a result.

By paying off their card on time each month and not over spending, 12 months is all you need to boost your score.

The fact that the majority of customers can boost their score in 12 months demonstrates that many of those who find themselves rejected by mainstream lenders haven’t actually got bad credit habits at all.

Many are in full time employment and are perfectly able to afford to repay a credit card debt. In fact, a significant proportion of people who are declined credit are actually able to manage a credit card well; they simply lack a credit history or an understanding of how to achieve a strong credit score. Being new to the country, not being on the electoral roll or simply never having had credit in the past can all harm your chance of getting a credit card, loan or mortgage.

How can I improve my credit rating?

The truth is there are multiple ways to boost a credit rating.

People can make sure they’re on the electoral roll, updating all of their personal information (including removing details of any former partners) as well as not applying for multiple forms of credit in a short space of time.

There are also specialist credit cards out there designed to help those with poor credit scores gain access to credit. Using these specialist credit cards can in turn can help build up a score over a period of time.

Mario Lupori is credit expert at aqua credit cards