How Quick Can You Change a Credit Score?

Credit scores are fragile things. It can take many months, even years, to improve your credit score significantly. You have to demonstrate that you can be financially responsible over long periods. However, if you're not careful, you can destroy your credit score in as little as 30 days.

Credit Scores

A credit score is a reflection of your credit history from the past seven years. It tells potential lenders how creditworthy you are. The actual formula used to calculate credit scores is a secret. However, we do know what sort of information goes into your score. The two most important things are your total debt and your repayment history. Also considered it the length of your credit history, the types of credit you have, and your number of recent credit applications.

Credit Reporting

Credit card companies report to one or more credit bureaus every 30 to 60 days. Every time you open a new credit account, the lender will report it. Most credit card issuers report credit limits, current balances and payment histories. If you've accidentally missed a payment, but have otherwise been in good standing, the credit card issuer may be more lenient. Call the company and ask nicely to have the infraction removed from your record. More often than not, they will oblige. However, you cannot do this more than once.

Damaging Credit Scores

If you have missed a payment on a credit card or a loan, it will show up on your credit report. A single missed payment will hurt your credit score, but it will not destroy it. Multiple missed payments are more serious. If you are more than 90 days in arrears, your credit score will drop by as much as 100 points. Defaulting on a debt will put your score well into the high-risk category. It will be almost impossible for you to get credit for at least a few years.

Improving Credit Scores

There is no quick and easy way to improve your credit score. You cannot remove negative information from your credit report unless it is incorrect. Accurate information will stay on your report for seven years -- 10 years in the case of bankruptcy. Meanwhile, all you can do is make the negative notations count less by building up a lot of positive information. This means making your monthly payments on time and paying down debt. Depending on your personal circumstances, you can raise your score by 50 points in a year.