People often get frustrated that their credit score hasn’t improved despite doing what they believe are all the right things. And sometimes even though the information in your report has changed it won’t always be reflected in your credit score.
To help you understand why this may happen, we’ve taken a look at the 4 main reasons behind a non moving credit score.
1. Patience is the key
Like the saying goes ‘all good things come to those who wait’, building your credit score takes time. Just because you’ve paid your bills on time for a couple of months does not mean your score will instantly change. You need to have a track record of showing you’re a responsible borrower. i.e borrowing money and paying it back on time. So be patient!
2. Risk level remains the same
Credit scores are unique to each individual. So what can have an impact on one person may not necessarily have an impact on another person. For example, if you’re already classed as a low risk - the likelihood is your score will be high. And if you were to miss a payment but otherwise have a good credit history, the likelihood of your score lowering is not as significant as it would be if you have a history of poor debt management. i,e not paying your debts on time. This would indicate that you are a higher risk to lend to, as you’re not showing the behaviours of a responsible borrower - i.e being able to pay back what you owe on time.
3. No significant changes
If you’re a creature of habit and have had the same credit card for years, and pay it off on a regular basis, then your score may not change at all. This is because the types of products and accounts you have are not changing to show any different behaviour month on month. This is not to say go out and get more credit. Just something to be aware of. As there are other factors that affect your credit score too.
4. Data delays
Finally, data in your credit report is not updated real time. It can take 4-6 weeks for data to be updated in your report. CRA’s (credit referencing agencies) are dependent on lenders providing them with updated data. If the lender is late in supplying the data, this will have a knock on effect with new info being shown on your report.
To help boost your credit score you may want to consider a credit building tool like CanopyGrow.