Do you need to raise your credit score by 200 points?
Do you have a low credit score? In fact, you may not even know your credit score number, but chances are if you haven’t been paying your bills on time your credit has been affected.
Your credit score is important, yet many ignore this number and don’t check their credit score or take advantage of their annual free credit report. Like most things in life, it is best to be knowledgable about your credit history and use this information to help raise your credit score if needed.
Therefore, it is essential to find out your credit score and improve your number. You can raise your credit score by 200 points with some simple tips and a little time.
Know Your Credit Score Number
Although your credit score may be on the bottom of your favorite number’s list, it is an important number for the average person. Nonetheless, according to CNN Money over half of Americans do not frequently check their credit annually and only find out their actual number when applying for a loan. This can be detrimental for some, especially if your credit score is low or if there is fraudulent activity on your account.
Your credit score can affect many aspects of your financial life and it is best to be in the know, so you can make your score work in your favor.
Are you in need of a loan soon or looking for an apartment? These are the reasons you should be concerned about your credit score because you could end up paying more if you have a low credit score. Once you find your number, you may need to work on raising your credit score by 200 points or more to help you secure your loan and get better rates on bills.
What is Your Credit Score?
First things first, you must know your number. There are several ways to do this. You request a free credit report once per year from the three major credit companies listed below:
Also, click here to get your free credit score
What is Considered a Good Score?
According to Experian.com, A score above 700 is considered good; however, above 800 is considered excellent. Nonetheless, the average person’s score is somewhere between 600-750. Yet, if your score falls below 579 this is considered very low and you may be at risk of losing opportunities and paying more interest if you fall within the low range.
Why Is Your Credit Score Important?
A credit score is important because it is used in determining if you qualify for a loan. Loans are important to the average person wanting to buy a car or a house. If your credit score is low, you may not get the loan you want or only qualify for loans with high-interest rates.
Generally, the higher your credit score, the more financial integrity, and trustworthiness you have.
In short, you may end up paying more because businesses see you as untrustworthy. The following companies may raise your rates due to a low credit score:
- cell phone
Your home loan and interest rate can also be affected and your credit may be decreased due to a low credit score. Typically, the lower the credit score, the higher your loan interest will be.
How Is Your Credit Score Calculated?
Your credit score is an accumulation of your credit history and is based on five factors that are weighted differently.
- payment history
- amount owed
- length of credit history
- how many types of credit in use
- account inquiries
Why Try to Raise Your Credit score by 200 points?
If you have a low credit score, you will end up paying more for loans and other bills. If you are able to raise your credit score, you will be in a better financial position to do what you want in life. You will not be subject to high interests and feel low confidence when applying for loans and you will have a better chance of being approved.
Request a Free Copy of Your Credit Report
Also, click here to get your free credit score
What Does My Credit Score Mean?
So you found your credit score, now what? It helps to understand what the numbers actually mean. So if your credit score is below 580 it is time to start fixing your credit.
And if you have a score of 580-640 your credit score is low and in need of repair.
Nonetheless, if you have a score of 640-720 you have a fair credit score, but it will still help to raise your credit score by 200 points.
Fortunately, If you have a credit score of 720-780 you have a good credit score.
And f you have a credit score of 780-850 you have an excellent credit score and do not need credit repair.
Click here for credit repair help
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- How to Budget and Still Have What You Want
- What is Frugal Living and Is It for You?
- What is Financial Discipline
Other Placed to Find your Credit Report
Credit Sesame – Credit Sesame is free for the first 30 days and can help you get your credit under control. You can monitor your credit score and et goals to raise your credit score. Credit Sesame also offers a free service to help monitor your score. The company will send alerts to notify you if something negative is reflected on your credit report.
Fixing Inaccurate Credit Report
How to Fix Inaccurate Credit Report
According to a study done by the FTC, 26% of people have an error on their credit report. One way to improve your credit score is to find errors and dispute them.
To fix your credit report, contact the credit agency and the organization the provided the misinformation.
You can also dispute an error online:
Pay off Debt Balances and Make it Automatic
If you have debt, paying it off will help boost your credit score. So make a plan to pay off debt and stick with it. It is key to pay more than the minimum on your debts or you may never pay them off. Try the debt snowball method and pay your smallest debt first and then add that payment amount to your next debt and so on until you have paid everything off. This will improve your credit score and you will feel a sense of accomplishment after paying down debt.
I recommend setting up automatic payments. Even if you input the minimum as your automatic payment, at least you will not be charged a late fee if you forget to pay. Setting up automatic payments is easy and usually can be done from your online account. If there is no option to pay automatically, check with your billing provider.
Keep Your Utilization Score Low
After you have paid off debt, make sure to keep your utilization low. Only charge what you need, and make sure to pay off your balance. Try using your credit cards to pay off bills automatically. In this way, you will not miss a payment, you can accumulate credit card points and you can build credit. However, make sure to pay the credit card bill to avoid more debt and late fees.
Only open a credit card as needed. Do not fall for the store sales such as 20% off if you open a store credit card. Pay cash for these types of purchases and avoid opening more credit cards, which can hurt your credit score.
Improve Payment History
One of the major factors of your credit score is how you pay your bills. Creditors look at your payment history. Do you pay your bills on time?
If you have payments in collections or have gone through a bankruptcy, your credit will be damaged.
If not, start by making a list of bills and when they are due. Post this on your refrigerator and check it daily. Use this free bill tracker to help you remember to pay your bills. Other ideas to help pay bills on time.
- bill payment alerts
- set a timer on your phone
- simplify and pay with a credit card so you only have one bill for utilities
How Long do Late Payments Stay on Your Credit?
- Late payments stay on your credit score according to the type of late payment.
- Late payments stay on your credit for seven years
- Public records stay on your credit for seven years, although some bankruptcies may stay on for ten years
- Credit inquiries may stay on your credit for up to two years.
Limit Credit Inquiries
Limiting hard credit inquiries can help your credit score. Too many credit inquiries can ding your credit score so it is best to avoid opening new credit cards or applying for a loan, unless you are ready.
Get a Secured Credit Card to help raise your credit score by 200 points
Getting a secured credit card can help build credit. Also being added to someone else’s credit card (as long as they have good credit) can help build your score.
Credit Score Improvement for Weak Credit
If you have weak credit, don’t worry. It is still possible to raise your credit score by 200 points. It will take time, but it is possible. Start by making a plan to pay off debt and stick with it. Consider a side hustle for extra money until you are able to pay off at least some of your debt. Your “on-time” payments will help improve your credit score so it is extremely important to pay all of your bills on time. Try to stop using credit cards and pay cash so your credit ratio is low.
How to Raise Your Credit Score by 200 Points Conclusion
Raising your credit score by 200 points will take time. There is no fast fix so don’t feel frustrated. Most importantly, be in the know as to what your score is. Don’t miss payments and use your credit cards wisely. If you follow these tips, you will be able to raise your credit score by 200 points and stop paying more than you have too.