Want to know how to get your credit score up 200 points? If yes, then this article sheds light on important tips to improve your credit history.
Having a good credit score is quite essential if you want to achieve financial stability. This three-digit number is what lenders need to know before they decide to approve your loans. They consider it as an assessment of risk and likeliness that you would be paying off the loan.
Around 26% of the people have either poor or abysmal credit according to a major consumer credit reporting agency. But there’s good news as well. You can change your credit score to a good score. How? Read on to know more about it.
First, let us know what all things are considered while calculating a credit score.
The following factors are taken when your credit score is calculated.
- Payment history
- The type of credit that you have taken out
- Length of the credit history
- Your debt-to-credit ratio
- The amount of debt you have
- Open credit applications
But, knowing what things are considered to calculate credit score is not enough. You would want to know how to increase your credit score as well. If you care to increase your credit score up to 200 points precisely, here’s how.
How To Get Your Credit Score Up 200 Points?
To Increase Your Credit Score, Do The Following:
Check Your Credit Report
Avoid any kind of mistakes on your credit report. It is because errors can affect your score, and you might look like a risky borrower. Check for the below mistakes:
Personal Info Errors
Look for wrong names, phone numbers and addresses. Ensure that all the accounts listed are yours.
Balance Errors
Make sure that all the balances and credit limits are correctly specified on the report.
Errors in Account status
Make sure that the accounts are specifying the status of accounts precisely. Avoid inaccuracies related to overdue and delinquent payments or closed accounts reported as open. Also, ensure that each debt is listed only once. If you face any error, contact the credit reporting company and file for a dispute.
2. Pay bills timely
Next, make sure that you pay all your bills timely. Your payment history largely determines your credit score. Poor payment history would give the lenders an impression that you would not be able to pay bills on time.
Follow The Below Steps To Avoid Poor Payment History:
? Make a Budget:
Ensure that you put aside some money for the monthly bills. To make it easier, create a budget that would help you allocate your monthly payments income.
? Create Auto-Payments
To avoid forgetting monthly payments, set an auto-payment option on your accounts. You would still need to check into your account every month to ensure that you pay your monthly payments without fail.
3. Pay Down Debts and Maintain Low Balances.
A bad debt-to-credit ratio would affect your credit score. Make sure that you pay student loans, auto loans or whatever obligations that you have. Try keeping your revolving credit cards to a minimum.
Lenders look for low debt-to-credit ratios which means that the amount you borrow is less than the total amount of credit card available to you.
4. Explore Secured Credit Cards Instead of High-Interest Cards
When you have credit card debts with high-interest rates, try paying them off with a personal loan. It can save you huge money because it has lower interest rates. Also, once you pay off the credit cards, don’t cancel them. When you don’t over-utilize a credit available, it helps you with your credit score.
5. Limit Credit Enquiries
Every time you apply for a mortgage, loan, or a credit card, you have a hard inquiry to your credit score. Every time a hard inquiry is made, your credit score would decrease. Thus, reduce your overall credit accounts.
Organizations such as utility companies, landlords and employers also do make credit inquiries. But these come under “soft inquiries” and do not affect your credit score.
6. Negotiate with Lenders
You stand a chance to negotiate your balance if your collection agencies have bought your debt. It is because lenders may be looking to recoup any kind of money they may receive. Also, compromises may be possible.
It is not very easy to raise your credit score by 200 points. But that does not mean that you lose hope. Inculcate the above few smart moves as to how to get your credit score up 200 points. You would be ending up in no time with an increased credit score with 200 more points within no time. Follow the above points and see the results.
As the editor of the blog, She curate insightful content that sparks curiosity and fosters learning. With a passion for storytelling and a keen eye for detail, she strive to bring diverse perspectives and engaging narratives to readers, ensuring every piece informs, inspires, and enriches.
