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How To Raise Your Credit Score 200 Points

By David Krug 6 minute read

When it comes to improving your credit, there are six measures you can take right now. How To Raise Your Credit Score 200 Points?

Your credit history will be the first thing lenders look at when you apply for a credit card (auto loan), personal loan, or line of credit. There is a three-digit figure called a credit score that determines whether or not you will be accepted for the loan you are requesting.

Despite the fact that credit scores as we know them date only from 1989, their significance to the typical consumer cannot be overstated. This is due to the fact that if you’re authorized for premium credit cards, you may be eligible for better loan terms, reduced interest rates, and even rewards programs. If you have bad credit, you may have to pay excessive interest rates, or you may not be able to get any credit at all.

Do you think it’s possible to increase your credit score by 200 points?

Fortunately, your credit history is just like the weather. Things are always shifting, even if they’re only a little. When it comes to your credit, unlike that dreary Saturday morning, you have the power to improve your score.

Even if you’re just getting started with credit or your FICO score is below 580, it doesn’t have to stay that way for the rest of your life. If you’ve made financial missteps in the past, such as bankruptcy or foreclosure, it may take longer to raise your FICO score by 200 points. However, you can get on the right track by developing good borrowing, spending, and repaying habits and learning how to handle your money properly.

However, it’s hard to provide you with a specific schedule for raising your credit score by 200 points, despite the fact that you may begin practicing wise practices immediately. The three main credit agencies each assess criteria like your payment history, credit usage, and mix of credit differently, so depending on which credit report you’re looking at, your score may change significantly.

Your credit score will increase over the next few months if the following measures are implemented. Even while you won’t see a 200-point boost in a single month, adopting a few important steps now will give you a good head start.

Using these simple measures, you can significantly improve your credit rating.

In order to increase your credit rating, here are some key actions you can do right now.

  1. There will be no more overdue bills. Did you realize that your payment history accounts for a third of your FICO credit score? Lenders are interested in your payment history since it gives them confidence that they will be reimbursed on time. One or two late payments can significantly lower your credit score, and this information remains on your credit record for many years. This means that you should always make your monthly payments on time, no matter how small they may be. Simply said, it’s the most crucial thing you can do.

Stop what you’re doing right now and make sure you’re up to date on your accounts if you have trouble meeting deadlines or can’t recall the last time you paid your credit card bills. Make the minimal payment today if you’re late. Seriously. We’ll be right back. In addition, if you’ve had a few late payments in the past but are now current on your payments, it’s fine. The good news is that your current score will be less affected by “poor” information that is older. Pay off revolving debt quickly.

  1. Credit Utilization Ratio. Paying your bills on time is critical, but how much you spend on your credit cards comes in a close second. This is because your credit card debt to available credit ratio is the second most important element impacting your credit score.

Credit card debt can be overwhelming, so focus on paying it off as fast as possible. Even while most experts recommend keeping your outstanding debt to no more than 30% of your available credit, cutting your expenditures even further may help you impress the credit reporting companies.

Why? That’s because, according to LendingTree, persons with credit scores of 800 or above tend to use just 5% of their available credit. In the example above, if you had $20,000 available credit distributed over two or three different types of credit accounts, utilizing just 5% of your credit would result in a monthly amount of around $1,000. Attempt to raise your credit limit by requesting an increase or applying for a new card.

  1. Review Your Credit Report. As a last resort, you may want to try raising the amount of revolving credit you have available. Your credit use will be reduced, which might help you raise your score.

Request an increase in your credit limit on your current credit card or open a new account with your credit card provider. Applying for a new credit card will almost always result in a rigorous credit check. A few points might be deducted from your final score if you have to answer a lot of difficult questions. Make sure you don’t use all of the fresh credit you’ve been given; if you do, your usage ratio will remain the same.

  1. Keep old credit cards open, even if you don’t use them. If not, you should learn how to do so today. Do it now, because mistakes happen all the time on credit reports. There were over 125,000 complaints regarding credit report mistakes in 2018, according to the Consumer Financial Protection Bureau. You may quickly and drastically improve your score by correcting any errors you detect in your reports.

Here’s what to do: Once a year, you are entitled to a free credit report from each of the three major credit bureaus by visiting AnnualCreditReport.com. In order to get a whole picture, don’t only read one and throw the others away. Every page should be checked for current balances as well as any negative things or accounts that you aren’t familiar with before signing off.
You can file a credit report dispute if you notice discrepancies. Any incorrect information will be removed from your report if you are accurate.

  1. Consider Other Ways to Boost Your Score. An unused credit card not only improves your credit usage rate but also establishes a history of long-term connections with credit card issuers. Your FICO credit score is based on the age of your credit ties, so if you can, don’t close old credit cards.

Your mobile phone and electricity bills are likely to be paid on time if you’re like most people. Ultimately, if you don’t pay, you won’t get any service (and worse, no electricity). For those timely payments, Experian has come up with Experian Boost. This is how it works.
When you sign up for Boost online, Experian will collect payment information from your bank account for your mobile phone and utility bills. You don’t even have to pay for it, and it’s simple.

According to Experian, the typical user saw a 13-point rise in their credit score after joining up for Boost. Only Experian, and not Equifax or TransUnion, use Boost, so you won’t see any changes to your credit reports.

Bottom Line

Increasing your credit score by 200 points isn’t as simple as following a step-by-step plan, but paying your bills on time and reducing your debt are essential first steps. Installment loans and Experian Boost might potentially have an influence on your credit score. However, keep in mind that, just as credit scores can rise, they can also fall. By incorporating these strategies into your daily routine, you’ll be able to keep your momentum continuing. Best practices must become daily routines if you want to have a strong credit history.

Last but not least, don’t give up, and keep in mind that improving your credit and personal finances takes time. Although it may take longer than one, two, or even three months for you to see a 200-point rise, keep up the good fight. You’ll be right where you belong in no time.