I have bad credit, really bad, but a local bank loaned me 25000. How soon will this begin to help my credit?

My payments are all made on time, and this is the only open account that I have. When will it start to help my credit improve? ! ?

Public Comments

1. It depends, a low of small local banks do not even report to the credit bureaus and if they do, they only report to 1. If you are lucky and your bank reports to all three, it will take 6-months for the loan to be rated, at that point it will start helping your credit.
2. Simple answer, a long time. Here is something you can do to help. Pay on the loan for about 3 months. Then, go to the bank and refinance the loan. Pay on time for another 3-6 months and refinance again, this will build your good credit more rapidly if the bank will let you do it. Tell them why you are refinancing, to build up good credit. Then, cut up all but one credit card and if you have store cards, use them for discounts and then make a payment the same amount you just spent. This also will build up your good credit and prevent bad. If you don't have the money, don't spend it. Credit card should be paid off right away until you get better credit and can get a lower interest rate. (These tips came to my daughter who had no credit at age 23 from our Credit Union. She bought a slightly used car and now, just under 2 years later, has good enough credit to look for a new car. She also had enough money to pay for the first car, she got a secured loan. Meaning she makes automatic payments and can't touch the money for the loan but gets interest on it so the loan interest equals 4% instead of 8%.)
3. Ask your bank to report your re-payment history to all three credit bureaus and if you are making payments on time you should see a difference in six months.