Even at times when your credit score is less than perfect, there is always a way to increase your credit score. Typically, your lender will report a late or delinquent payment to the three credit bureaus after the bill is 30 days past due.
The same rule applies to any positive on-time payments. If you are always waiting to see your score be updated, here are some key things you should know.
What Things Take More Time to Repair?
Usually, anything negative on your credit report will take time to repair. The worse the issue though, the larger dent it will leave on your credit score. Some of the most common negative entries that can take time to clear up are:
- Missing payments on a credit account
- Having an account turned over or sold to a collections agency
- Getting a car repossessed
- Getting your wages garnished
One way to always stay ahead is to check your credit reports. Once you find information on your credit report that could hurt your score, you should do everything in your power to try and have that negative entry removed.
This includes sending a letter of goodwill deletion and a pay for delete method where you negotiate partial payment in exchange for having the negative entry removed from your credit report.
Know that depending on the severity, a negative entry can stay on your credit report for up to 7 or 10 years.
What Updates Happen Quickly?
If you have a limited credit history or are fairly young, updates to your credit score will have a larger and more profound impact. Positive payments do get reported to the credit bureaus and they will be reflected usually within 30 days from the payment date.
If you have less than ideal credit and are ready to buy a new car, CrediReady can help. Our nationwide network of trusted dealers and verified lenders work with buyers in all credit situations. Take a moment to fill out our free no obligation loan inquiry form and start shopping for your new car today!