Has your credit score ever been a disappointment? Maybe when you tried qualifying for a personal loan or getting an approval for a credit card? No issues! Here are 6 tips on how to raise credit score by 200 points that will ALWAYS WORK!
… Is It Possible?
It is possible to raise credit score by 200 points. However, it can take a couple of months before any of your effort starts to show up on the report.
What You Can Do To Raise Credit Score By 200 Points
There are a number of things you can do in order to improve you credit score. However, it will be wrong to expect a jump of 200 points within weeks. The key is to stay committed to the goal!
1. Never Delay Payments
Check your credit report and pay off any bills or payments that will be instantly removed from the report.
However, keep in mind that paying off bills immediately now will not remove other late payments you have made in the past. The adverse affect of such entries on your credit report might stay for a long time.
Quick Tip! If you want to quickly raise the credit score 200 points, consider paying the crediters first who will delete the filings on your credit report.
Another way is to set up automatic payments for utility bills such as phone or medical. This will ensure you always make the required payments on time. It’s very unfortunate if you have the money but simply face penalty because you forgot to check your mail
Did you know? “While a medical facility or utility will likely not report delinquency to an agency for being late one time, if you are 90 days late on any of these bills, it could affect your credit score”
2. Don’t Over-Use Credit Cards
This basically means you should not cross the threshold of credit utilization. The limit of credit card you use affects credit score.
Let’s suppose you have a limit of $10,000 with one card. In this case you should never spend more than 30% or $3,000. If a limit for a card is too low and you always end up spending the whole limit, try out another credit card instead of sacrificing your score over it.
3. Try Increasing Credit Limit When You Want To Raise Credit Score By 200 Points
Do you only check your credit score when you need it for something? Then there is something you should do about this habit.
Why? It is always a good idea to keep a check on your score.
A good credit score can help you in many ways. They are your way to competitive interest rates on cars, insurance premiums and other offers. A good credit score will save you from higher interest rates.
You can easily find out your on-going credit score from companies like MyFICO and Credit Karma for FREE.
4. ALWAYS Keep A Check On Credit Report
The first step to improving your credit score is to find out what’s causing the problem. For this reason, you need to be well aware of your credit report.
A credit report will give you an idea of missed payments, pending debts or other issues that are dragging your score down. It will also remind you of any account or payments you had previously forgotten about.
As soon as you know where you are making a mistake, you can start trying to fix it. Also, if you come across any misinformation on the report it can be reported to related companies and thus corrected. Such improvements can help you easily raise credit score by 200 points in no time.
However, you need to keep in mind that sometimes a dispute would not end on your win. If the crediter does not fix the problem, you might have to take the issue to reporting company and request them to interfere.
5. Don’t Close Down Credit Cards
It’s not always a good idea to close down an account or credit card even if you are not using it a lot.
A closed credit card will not be considered a part of your credit history. Therefore, it is important to keep your oldest accounts open and preferably active too. Closing down such a credit card will have a negative impact on your credit score.
Quick Tip! “By closing credit cards with a low average age, it will have a much smaller impact when you close a credit card.”
6. Avoid Hard Inquiries To Raise Credit Score By 200 Points
This can’t be enough emphasized on: Inquiries are not good for your credit score! Focus on removing inquiries from your report as soon as possible.
A hard inquiry is the one lenders carry out on your report when you apply for loan or credit. These show up on your support and are NOT good for your overall score.
It does not matter if your loan was approved. Even in that case a hard inquiry will make it look like you were too desperate for goods or services that you could not afford.
Hopefully by now you are all ready to improve your credit score and win more than 200 points! Just give it few months and always keep a check on your report to see if your effort is paying off.