How long will it take to improve credit rating?

clare79 · 27 May 2013 at 11:49AM

Hi all,
I want to get a car on finance, all I have on my credit file is a mortgage and mobile phone (both up to date with no missed payments), so I have taken out a credit card to boost my rating. How many months will this take if I pay the balance every month?

matttye · 27 May 2013 at 11:55AM

You could probably get finance already.. I'd strongly advise against it but the choice is yours of course

If you want to be really safe give it six months. I would think that's roughly around the time a lender would no longer consider it a 'new' account.

The_Boss · 27 May 2013 at 11:59AM

How long have you had the mortgage and mobile phone account? Or perhaps more relevantly, how many years data for these are there on your credit file?

Getting a car on finance is easier than obtaining a personal loan as the finance is secured on the car, meaning they will take action to repossess it if you miss several payments or default. If you have had the mortgage for at least a year then no harm applying now.

Edit : would also depend on what your salary is as affordability is also an issue.

clare79 · 27 May 2013 at 12:11PM

Thanks for your replies. Had both over 10 years.

clare79 · 27 May 2013 at 12:12PM

Salary over 35k a year and held job for 17 years.

The_Boss · 27 May 2013 at 12:16PM

You will be ok applying now then

clare79 · 27 May 2013 at 12:59PM

Thank you :-)

How long will it take to improve credit rating?

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