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Are you wondering about how to Raise Credit Score by 200 Points? Money and credit are more of a necessity these days. You need them everywhere. But every once in awhile, we tend to mess up our credit scores, and having a good credit score is crucial to your monetary well-being.
You need a good credit score for purchasing a property, renting houses, taking loans, and many other finance-related tasks. This three-digit number has so much to do with your financial health and personal economy.
A credit score above 750 or 700 is a good credit score. The credit score from 350 to 600 is very poor, and you need to improve it as soon as possible.
If you have a credit score below average, you don’t need to worry. According to research, only 29% of people have a credit score above 680. Here you will learn how to fix it.
In this blog post, we will discuss the factors that make your credit score fall below average and how you can raise your credit score to 200 points.
There are several easy ways you can improve your credit score within a short period. So let’s move ahead with the blog. But before that, you need to know what comprises to make your credit score.
How Can You Determine Your Credit Score?
Your credit score is not only your credit card balance and history. Several things comprise to make up your credit score.
- The payment history of your bills makes up 35% of your credit score.
- The ratio of the amount of credit space owned to the total limit of a credit card makes up 30% of your total credit score.
- How long your credit history is has a portion of 15% in the total credit score.
- Your credit mix that is the concentration of your secured and unsecured credit cards, makes up 10% of the entire credit score.
- Lastly, your regular credit inquiries and credit checks make up 10% of your credit score.
How to Raise Credit Score by 200 Points? What Makes Your Credit Score Descent?
A decrease in credit score can be due to many different factors based on everyone’s credit history. It can be different for everyone. However, there are a few common factors that make your credit score to fall.
- Your payment was way behind the due date.
- Your non-credited account, which was unpaid, was sent to the collection agency.
- You made a costly purchase, which almost reached the limit of your credit card.
- You applied for a substantial amount of loan or a new credit card.
- There was any erroneous information in your credit report.
- You had been involved in any illegal payments or bankruptcy in the past. This is an extreme case, and it might block your credit card.
How to Raise Credit Score by 200 Points?
Now that you are familiar with how you can analyze your credit score and what makes your credit score collapse let’s discuss how you can improve it.
You can raise your credit score by 200 points by following these easy conducts on your own. But before you proceed with these, know your current credit report and detailed credit history.
You can know it by the three agencies; Equifax, Experian, and Transunion. It will tell you what made your credit score to decrease and where you need to improve.
Instead of getting your credit report checked from all three bureaus, you can get it done by credit repair. They gather your reports from all three bureaus and then review it for any damaging items in it.
The following are some common ways you can adopt to improve your credit score within months.
How to Raise Credit Score by 200 Points? Open A New Credit Account
You might find it strange, but trust me, it will help you boost your credit score within no time. Once you get a new credit card, your credit limit automatically increases.
The credit report is made considering the overall credit scores of all your credit cards rather than individual credit card scores. So if you have a new credit card and you don’t have much debt on it, it will raise your credit score.
But you need to be careful about one thing that you don’t spend too much on the new credit card. This way, it will become more of a nuisance for you than a blessing.
How to Raise Credit Score by 200 Points? Appeal For An Increase In Your Current Credit Limit!
Another way is to appeal your credit company to increase your credit card limit. It works almost the same as the above remedy of opening a new credit account.
This is only possible if you have good credit. This is because the company will inquire about your credit score, and you are more likely to get it when you have a fair ratio of credit score. This credit check will not be much harsher.
This process might take 3 months to six months to the most. Once you have gotten your credit limit increased, make sure that you keep your purchases in balance. This way, you will be able to maintain a good credit score.
How to Raise Credit Score by 200 Points? Look For Any Inaccurate Records!
At times your credit score might fall because of the negligence of your creditors or lenders. When you know that your credit history is balanced and your credit score is still falling, look out for any negative or inaccurate entries in your credit report.
They can be because of the mistake of lenders or creditors who have mistakenly entered false information in your record. Another reason can be that while computing your regular credit report, any misinterpretation of data had happened.
Once you find any of these, immediately inform the credit company about this, or write an application. Your credit score will be checked and improved as soon as possible.
Mend Your Payment History!
You need to pay your bills on time. For example, the bills usually come with a due date, so try to pay them within that due date. Once you cross that due date, you need to pay an extra debt for it. Now you must be wondering how you can have control over your payment history.
Well, there is not much you can do about it except that you start paying your current payments within due time. After some time, you can request your creditor or credit company to remove it from your credit history.
Usually, a late fee after the due date remains for seven years in your credit history. Still, a payment one or two days can be compensated to be removed after 30 days keeping in check your recent payment history.
How to Raise Credit Score by 200 Points? Pay Your Credit Before You Get the Bills!
Usually, you get payment bills every thirty days or bimonthly in rare cases. Most of the time, you are well aware of when you will be getting a bill.
So try to deposit your payments before you get a bill from the company. This way, your bills record will not be included in your credit report.
Usually, when your bills are sent, they don’t include the amount of payment. They are just a statement that your bills were paid or unpaid. So more the bills, the higher is the chance of messing up a credit score.
To avoid this situation, deposit your dues before getting an actual bill statement. This will display a lesser consumed report. In turn, you are increasing your credit score.
Om an average try to send your payments three to four days before you are about to get a statement.
How to Raise Credit Score by 200 Points? Do Not Close Your Vacant Cards!
If you have any credit cards that are not in use, do not close those accounts. Your cumulative credit limit is the sum of all your used and vacant cards, so if you close any one of the vacant cards, it will have a huge drop in your credit score.
Another reason is that your card, even with zero balance, adds up to make your average credit history. If you close it, your score will collapse.
Suppose you want to close any cards considering that you cannot keep a record of so many cards, close that account which has been opened the last. This way, you will have a minimum drop in average credit history.
How to Raise Credit Score by 200 Points? Limit Your Credit Inquiries!
Regular credit inquiries help to maintain your credit record and history. There is a credit company called Credit Karma and Credit Sesame. It lets you know your credit score free of cost and also offers free credit monitoring.
But too many credit inquiries can lower your credit score. If you open new accounts or make purchases now and then require a credit inquiry, it can have a bad impact on your credit score.
Plan it out in such a way that you have your credit inquiries scheduled every twice a year.
Conclusion
Your credit score is not a perpetual number, and there are ways you can improve it. Follow the steps mentioned above, and you can make it rise by 100 to 200 points within 3 months.
If you see is falling, follow the above steps, and you can fix it to some extent on your own. Even then if the credit score is below average you cant get it repaired by Credit Saint. It is a renowned Credit repair Company and will surely fix your credit.
It does not matter how bad your credit score is; there is always room for improvement. All you need is determination and consistency in this work. You will surely have the ideal credit score.
I hope that you found it helpful. Let me know if it was beneficial for you.
