The credit rating calculated according to the degree of fulfillment of the financial responsibilities arising from the loans and credit cards used by consumers in the previous periods is renewed and updated periodically.
In this context, the consumer, who started to fulfill the requirements before the renewal period, will be able to see the effect of this on a credit score in a very short time.
Is the Credit Rating Renewed Periodically?
People who are wondering when the credit rating will increase if everything goes well should have an idea about the update intervals. The credit rating is not reset periodically, but recalculations are made at certain times of the month with the help of the algorithm.
Each calculation made within this scope will collect data on financial transactions performed within that payment period and reflect this on the credit rating. However, it is not known at what intervals this is done or how often.
How long is the credit rating updated?
Consumers who are wondering when the credit rating will be updated are usually the group that counts days to submit a new loan application. Consumers who realize that they have an active loan while submitting new loan applications although they have paid the last installment of the loan they used in the past, prefer to wait for the update date, but this is not a requirement.
If you have closed the last installment of your loan and you are going to apply to use a new loan, it will be sufficient to get a letter from your bank. In the loan applications made to the bank with the relevant letter, the active loan will not be included in the calculation and thus the loan can be used.
So how long does the promotion take place?
The above question has been answered many times, though indirectly, but it may be useful to mention in detail under a separate title. The credit rating is updated periodically and these updates correspond to the payment periods.
Therefore, the credit ratings of consumers who make credit payments, deposit credit card statements and establish good relations with banks will start to increase in the same month as of the first update period. But how much it will rise will vary greatly from person to person.
Factors affecting credit rating:
- Payments to credit and credit cards (35% impact)
- Debts to banks (35% impact)
- Withdrawing new credit (11% effect)
- Credit usage frequency (10% effect)
- Tax, SGK etc. debts, other (9% impact)
As can be seen from the above percentiles, how high the credit rating will increase will depend on what the problem is resolved. For example, people who have delayed their credit debt for some time will pay a serious increase in two consecutive periods, but the effect of acquiring another credit card will be much less on the credit rating.
My Credit Rating Is Not Updated?
Consumers, who perform that their credit rating has not been updated for a long time, must definitely report the situation to the Credit Registry Office. Although the algorithm is used, it is likely that in some specific cases paradoxes may arise and the credit rating will not be updated, although everything is OK.