I currently have a low credit score due to my accounts being in arrears. I have paid up all the arrears amounts and extended my loans repayment terms.
Is the extension of repayment terms going to affect my credit score? And how long will it take for my score to be in acceptable position?
Well done on taking responsibility and control of your accounts.
To answer your question, the original credit agreement made provision for a certain term. I.t.o your new arrangement, the term might be extended, but chances are good that the credit provider will still sync data with the credit bureaus based on the original term. This means that your credit record might still show that you are in arrears.
To sort this out, you need to get the new term arrangement in writing from the credit providers. You then need to make sure that they have adjusted this on their systems and that they send data to the credit bureaus based on the new agreed term.
If the data still pulls through incorrectly, you can lodge a dispute with the credit bureaus and send the written confirmation of the new term as proof.
Sorting out a dispute could take up to a month. Once all your accounts are loading correctly onto the credit bureaus, it should take about 3 – 6 months for you to see any positive movement on your credit score.