Building credit - it takes time and effort

So what does it take to build a good credit record?

Great question. Generally speaking, it takes two things.

The first is time. How much time will depend on your personal situation.

May be you've just opened your first credit account. Provided you're disciplined with your repayments, it’ll be a relatively quick path to establishing a good credit record .

May be you've been in arrears (also called an overdue or delinquent payment). Credit agencies monitor for consistency, so if you've been in arrears this will impact your credit record. It's not the end of world, but it will take time to get back in the good books.

May be you've a default, Country Court Judgement (CCJ) or Individual Voluntary Arrangement (IVA) registered against you. Any of these means a long road to recovery, simply because they will remain on your credit record for six years.

The second thing - and this should come as no surprise - concerns how good you are at making repayments.

The most important thing you can do to build your credit record is to never miss a repayment. It takes time to establish a good credit record, but it only takes one missed repayment to damage it.

If you think you’re at risk of missing a repayment, please talk to your lender as soon as possible.

Think of building your credit record like trying to get fit. It won’t happen overnight, but with time and effort you will be rewarded with better health.