How to improve your credit score

If you’re looking to boost your credit score, we can help! We’ll show you ways to improve your credit profile, and timelines for how long those improvements need to take shape. (Spoiler alert: consistency is key!)

Why improving your credit score matters

Your credit score is a big deal when it comes to borrowing money. A good credit score shows lenders you’re responsible with your money, which can lead to lower interest rates, better loan offers, and more affordable credit options. If your credit score is low, it can hold you back from getting approved for loans, or it might result in higher interest rates that cost you more money over time. But here’s the good news: you can improve it. And you’ll be giving yourself better financial options when renting a new place, getting insurance, and - in some cases - even landing a new job.

Understand what affects your credit score

Your credit score is affected by a number of factors, and understanding them can help you improve your score. They include:

• Payment history: This is the most important factor. Timely payments = a higher credit score.
• Credit utilisation: Keep this under 30% whenever you can.
• Length of credit history: A longer history is better, but it takes time.
• Types of credit: A mixture of credit types can positively impact your score.
• New credit: Too many credit applications can lower your score slightly.

Strategies for improving your credit score

Working to bump up your credit score has long-term benefits for your ability to borrow money and get good loan terms.  Here are our tips:

• Make payments on time: Your payment history is the most crucial factor in deciding your credit score. Make payments consistently, on time, and never miss a due date.
• Keep your balance low: 30% is the magic number. If you’re worried about using too much of your available credit, try to pay down your balances faster, or consider spreading your spending across multiple credit cards.
• Avoid excessive credit enquiries: Only apply for new credit when necessary. You can also shop around for loans within a short timeframe to minimise the impact of “hard” enquiries on your score.
• Build a credit history: If you’re new to credit, or don’t have much credit history built up yet, start small and make payments on time and in full to help establish a good credit history. You can help lengthen your credit history by keeping older accounts open, even if you don’t use them frequently.
• Check your credit report: You should check your credit report annually and review your reports for any inconsistencies. If you see something wrong, you can dispute it. Even small corrections can boost your score.

How long does it take to improve a credit score?

The time it takes to improve your score varies depending on different situations, so we’ve put together some timelines to give you an idea of what to expect:

Starting with no credit history

Timeline: 3–6 months

If you’ve never had credit before, it takes about 3 to 6 months of activity to generate a credit score.

How to build: Get a credit card or become an authorised user on someone else's account. Pay your bills on time and keep your balances low.

Building good credit over time

Timeline: 1–3 years

If you use credit responsibly your score will keep improving. It usually takes 1 to 3 years to see your score hit the "good" range. We’ve explained the ranges a bit more here.

How to build: Stay on top of your bills, keep your balances low, and avoid opening too many new accounts.

Rebuilding after a late payment

Timeline: 6 months to 2+ years

If you’ve missed a payment, it can hurt your score for up to 7 years, but the impact lessens over time.

How to rebuild: Pay your bills on time and focus on reducing any debt. You may see some improvement in 6 months, but full recovery can take 1 to 2 years.

Rebuilding after a bankruptcy

Timeline: 2–5 years

Bankruptcy can stay on your credit report for up to 10 years, but the effect on your score gets smaller over time.

How to rebuild: Although it’s more difficult to get credit after a bankruptcy, you can rebuild. Start fresh with small, manageable credit accounts. It might take 2 to 5 years to recover, but you’ll see progress as long as you make responsible choices.

Too many credit applications

Timeline: 6 months to 1 year

If you apply for a lot of credit cards or loans in a short period, each application results in a "hard enquiry" that can lower your score temporarily. These enquiries stay on your report for 2 years but affect your score less after 6 months.

How to rebuild: Avoid applying for too many new accounts at once. Your score will start to recover within 6 months, but it may take a year or so to fully bounce back.

Building a solid credit score takes time and effort, but it’s absolutely achievable with consistency, and your future financed self will thank you!