Having a higher credit score generally works in your favor. Ultimately, it makes it easier to secure financing when the need arises, as well as secure lower interest rates on loans, credit cards, and more. Plus, high credit scores can mean not having to pay deposits when turning on utilities and can provide other advantages. If you want to boost your credit score, here are five steps to get it increased by 200 points quickly.
Can You Increase Your Credit Score by 200 Points in 30 Days?
Many people wonder about how to raise their credit score 200 points in 30 days. However, there’s no guarantee that any particular person can hit that target. Ultimately, 200 points is a dramatic increase, usually to the point of requiring more than a month to pull off.
Plus, when creditors report positive activity is also a factor, and depending on what actions you take and when they happen, updated information might not arrive within the 30-day deadline.
Now, that doesn’t mean a solid increase isn’t possible in that short of a timeframe. Instead, it’s mainly a reminder to be realistic. If you want to find out how to increase your credit score by 200 points as quickly as possible, see the steps listed below.
5 Steps to Increase Your Credit Score by 200 Points
1. Dispute Inaccuracies
One of the fastest ways to bump up your credit score is to dispute any inaccuracies that harm your credit profile. For example, incorrectly listed missed payments, debts that aren’t yours, and similar issues can drag your score down dramatically. By formally disputing them with the credit bureaus, you can work toward getting the information removed, and once it drops off, your credit score may pop up significantly.
2. Lower Your Credit Utilization Ratio
Generally, high credit utilization ratios on revolving debts (like credit cards) are red flags to lenders, and they typically cause your credit score to either dip or remain lower. By reducing your credit utilization ratio quickly, it’s possible to see a substantial credit score increase in a relatively short time period.
In most cases, you want to keep your credit utilization below 30 percent across all active revolving debt accounts. If you’re above that mark, a straightforward option is to pay off what’s owed as fast as possible until you fall under that ratio.
Alternatively, you could ask for a credit limit increase on a card or get a new card, as more spending power causes your ratio to drop (suggesting you don’t acquire more debt). Just know that this strategy can lead to a hard pull on your credit report, and that may cause your credit score to drop a few points initially.
Finally, you could pay off a revolving debt with a personal loan. Again, this will result in a hard pull, but it allows your total revolving debt to drop dramatically once you use the funds to pay it off.
3. Try Experian Boost
While this step only makes a difference on your Experian credit report, it’s worth considering. Experian Boosts analyzes your bank account information and uses payments for rent, utilities, phone bills, and similar expenses as factors in your credit score.
Generally, individuals with thin credit reports see the biggest benefit from Experian Boost. However, that doesn’t mean it can’t help those with more in their record, and since it’s a free service, exploring it may be worthwhile.
4. Become an Authorized User
If your credit history limits your access to credit, becoming an authorized user on another person’s account could give your credit score a bump.
Typically, this only works if the cardholder is a responsible borrower, maintaining a low balance and making on-time payments.
Additionally, it’s better if the card has been open for a significant amount of time, as the average age of your accounts is a factor in your credit score (with a higher number of years being better than a lower one).
So, if all of that applies, then their good habits will show on your credit report, causing your score to increase.
5. Request Missed Payment Forgiveness
If a missed payment is dragging your score down and it happened recently, you may be able to convince the lender to remove it from your credit report.
In most cases, this only works if you’ve previously shown reliability, and this is a rare misstep on your part. Additionally, you need to pay what’s owed either before making the request or during the discussion about removing the negative mark.
The reason this step is worthwhile if it’s a factor is that on-time payments are the largest credit score factor. A single negative remark can wreak havoc on your credit score, so getting it removed can restore what you previously built.
Do you have any tips that can help people figure out how to raise their credit score by 200 points, even if it takes more than 30 days to see the increase? Share your thoughts in the comments below.
Read More:
- Is It Possible to Raise Your Credit Score 100 Points Overnight?
- What Are the Best Ways to Repair Your Credit Score?
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