How Long Does It Take to Improve Credit Score?

5paisa Research Team Date: 08 Feb, 2024 04:16 PM IST


Want to start your Investment Journey?



How long does it take to improve credit score? This is a common question that many individuals ask to learn about their creditworthiness. Maintaining a good credit score is necessary when making a significant purchase or qualifying for a credit card. Since there is no one-size-fits-all, several ways exist to improve credit scores. 

Breaking it down, the duration required to enhance your credit score hinges on the underlying reason for its need for improvement. If your score is lacking due to limited credit history or the early stages of building credit, you might witness a score boost in just a few months.

However, suppose your score is adversely affected by substantial debt. In that case, the process may take a bit longer, but identifying the appropriate debt relief solution can set you on the path to improvement. If your creditworthiness has been compromised due to missed payments or bankruptcy, the journey back to a robust credit score demands even more incredible patience. In specific scenarios, achieving a complete recovery may span several years.

Let us now learn how long does it take to raise credit score.

Tips To Improve Your Credit Score

Credit scores serve as a representation of an individual's creditworthiness, and lenders generally favour customers with a score of 750 or higher. However, the timeframe required to achieve a credit score of 750 depends on various factors, such as your current credit score, credit history, payment habits, and overall credit utilization. 

You may wonder how long does it take to boost credit score. If your score falls within the range of 650 to 700, coupled with a consistent payment history and low credit utilization, it may only take a few months to elevate your score to 750.

The purpose of a credit score or credit report is to assist banks in determining an individual's creditworthiness for loan or credit card approval. A person's diverse financial needs often hinge on their credit score, with higher scores increasing the likelihood of quickly obtaining a credit card or securing loan approval.

Ignoring one's credit score, especially if it's unfavourable, is not advisable. Exploring ways to enhance your credit score is always beneficial, as it plays a crucial role in obtaining smoother and more affordable credit. Presented below are some of the most effective methods for improving your credit score.

Improving Payment History

Enhance your repayment history and subsequently boost your credit score by consistently making punctual payments on the credit cards and loan EMIs. Missing a payment on either your credit card or loan EMIs can have a substantial negative impact on the credit score, potentially causing it to decline. Therefore, prioritize cultivating a favourable repayment history to ensure an improvement in your overall credit score.

Lowering Credit Utilisation Ratio

According to financial experts, it is advisable to keep your credit usage below 30% of the assigned credit limit. Exceeding this limit suggests a reliance on credit, indicating a constant need for loans or credit to handle daily activities. While it's acknowledged that credit is a necessity at times, it's crucial not to surpass the 30% threshold if your goal is to raise your credit score from 500 to 700.

Maintaining a Good Mix of Credit

A diverse credit mix can be achieved by opting for a higher proportion of the secured loans in comparison to the unsecured loans. Secured loans, like car loans or home loans, contribute to an improvement in credit scores as they are long-term appreciating assets. The extended repayment tenure associated with home loans, for instance, indicates that borrowers will consistently make payments over an extended period, thereby aiding in the maintenance and equilibrium of their credit scores.

Avoiding Closure of Older Accounts

Shutting down inactive credit card accounts reduces the available credit and can have implications for your credit score. On the other hand, keeping these accounts open and unused showcases your responsible use of credit. Furthermore, it's important to note that maintaining older credit card accounts can positively influence your credit score.

Regular Monitoring of Credit Report

Regularly monitoring your credit report is a crucial habit for maintaining and rebuilding your credit score. It is possible to encounter incorrect or inaccurate personal information in your credit report, and it is imperative to promptly report such discrepancies to the credit bureaus by filing disputes. An accurate credit report facilitates effective management of personal finances and helps prevent falling victim to identity theft.

Not Applying for Multiple Credits in Short Duration

Submitting applications for multiple credit products simultaneously portrays you as someone seeking excessive credit, and this behaviour is promptly noted by credit bureaus, resulting in a decline in your credit score. It is advisable to refrain from applying for multiple credit products concurrently. Financial institutions, including banks and NBFCs, are often hesitant to approve such applications, viewing individuals engaging in this practice as high-risk borrowers who may struggle to meet loan obligations on time, potentially causing losses for the lender.

Additional Tips to Raise Your Credit Score

To know how long does it take to increase credit score, explore these strategies to enhance your credit score:

• Avoid making direct inquiries about other credit cards, as this can impact your credit score. Instead, explore credit card options online without directly engaging with multiple credit card companies.
• Reduce your reliance on credit to maintain a low credit utilization ratio (CUR). If your CUR consistently remains high, you can request an increase in your credit limit from the bank or explore alternative payment methods for your purchases.
• Consistently maxing out your credit limit can significantly decrease your credit score. Therefore, establish a buffer limit and refrain from surpassing it.
• Borrow only what is necessary to meet your loan repayment obligations and settle bills efficiently. Keeping your borrowing in check contributes to a healthier credit profile.

What is a Good Credit Score Range?

Typically, most non-banking and banking companies take into account a credit score of 750 and above as ideal. A robust credit score signifies a high level of creditworthiness. It's worth noting that various credit bureaus may have distinct ranges for credit scores. Let's explore these diverse credit score ranges to know how long does it take to raise your credit score.

• NA/NH:
If you lack a credit history or have insufficient credit history to generate a score, it signifies that you are new to the credit rating system.
• 300-500:
If your credit score falls within this range, it indicates a lack of responsibility in meeting repayment obligations and suggests the presence of multiple debts. Additionally, it implies that you haven't sustained a low credit utilization ratio over an extended period. Individuals with such credit profiles pose a higher risk of default, making lenders cautious about extending credit.
• 500-650:
Having a credit score in this range signifies a history of multiple payment defaults. Consequently, individuals falling within this range are categorized as being at risk of becoming defaulters.
• 650-750:
A credit score within this range signals a consistent repayment history and a proficient management of credit. It implies a robust financial health and a lower likelihood of defaulting on credit.
• 750-850:
Having a credit score of this magnitude indicates to lenders that you pose a minimal risk of default. It also implies a consistent history of excellent repayment behaviour and the maintenance of a low credit utilization ratio.
• 850:
Possessing a credit score of 850 and above indicates your exemplary management of credit and a diversified credit portfolio. Such a high credit score places you in a favourable position to access the most advantageous credit card and loan deals.


So, this was all about how long does it take for credit score to improve. Like many challenges in life, there's no more opportune moment to confront a low credit score than the present. By ensuring timely payments and thoughtfully evaluating your financial requirements, you set yourself on the path to establishing a robust credit history.

More About Generic

Open Free Demat Account

Be a part of 5paisa community - The first listed discount broker of India.


Frequently Asked Questions

Yes, applying for too many credit cards in a short period of time lowers your credit score. This is because when you apply for a credit card, the issuer asks for your credit report from the credit bureau. This is documented as a hard inquiry, which has a negative impact on the credit report.

Typically, the amount of time necessary to attain 700 or above is determined by your current credit score. Observing an improvement in your credit score often takes many months because it is not an overnight procedure.

The late payment history remains on the credit record for up to seven years, lowering the credit score. To reduce the negative impact on your credit score, make sure to pay your bills on time.