How Long Does It Take To Build Credit In The UK?

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Having a good credit score is essential to your ability to successfully apply for a host of financing options (including mortgages, credit cards and even mobile phone plans), so it can be important to ensure that you make good financial decisions to improve your standing.

When it comes to building credit in the UK, you may be wondering how long this actually takes. The good news is that you can find out all you need to know right here.

Important information about UK credit scores

You may have made some decisions in the past that have led to a poor credit score, or maybe you are just starting out and want to ensure that you get off on the right foot. In either situation, you will need to have a good starting point and put in some consistent effort to get where you want to be.

As your credit score is an indicator to lenders of all types when establishing how trustworthy you are when it comes to finances, it can be important to have a score of at least 881-960 (this is considered good). A report that shows 721-880 is considered to be fair and 961-999 excellent – and these will affect the types of finance you will be able to qualify for.

Credit scores are calculated using the information that appears on your credit report and this typically includes:

  • Previous payment history
  • The types of credit accounts you’ve had
  • Additional info like credit limits

There are three major credit bureaus, Experian, Equifax and TransUnion, and lenders will access one of these to determine your credit score. Lower credit scores won’t necessarily mean you won’t get approved – if you do, you may find yourself subject to higher interest rates.

Tips to improve your credit score

Here are the top ways to build your credit:

  • Regularly pay off any credit cards, loans, or financial contracts you may have and always pay your bills on time every week/month 
  • Always keep revolving balances below the available credit limit
  • Try to vary the types of credit you have, but be sure to maintain payments on each

The average time it takes to improve credit scores

If you are starting fresh, it can take six months to build a good credit score, but if you have bad credit already, it can take a few years. The more action you take and the better you manage your money will help to build your credit faster, so be sure to do all you can to get where want to be.