How Can I Raise My Credit Score 200 Points?
While raising your credit score by 200 points is possible, it won’t happen overnight. Improving your credit score takes a lot of patience and dedication on your part. Here are some of the best ways to improve your credit score and maintain that score over time.
Pay Bills on Time and Regularly
The most significant factor determining your credit score is whether or not you pay your bills on time. Not only do missed repayments affect your credit score, but they can also decrease your value as a borrower. Therefore, paying your bills on time every month can improve your credit score and help you maintain a good credit score.
Pay Off Debt to Reduce Credit Card Balances
Making extra repayments to reduce your credit card debt can quickly improve your credit score. In addition, having low balances on your credit cards shows potential lenders you are not dependent on credit cards to live every month and that you can afford to make loan repayments.
Build a Credit History
Opening a credit card, even if you don’t use it, can improve your credit score. For example, having a credit card with a larger limit to use only in emergencies is an excellent way to develop a credit history and practice good repayment habits.
Be Selective When Applying for New Loans or Credit
Every time you apply for a new credit card or a loan, an enquiry will show up on your credit file, impacting your credit score. The more enquiries you have in a short time, the lower your score and the higher risk you are to lenders. If you need to apply for a new loan (such as a home loan) or a credit card, do your research to find the best lender for you. Limiting your application to lenders who are likely to approve your loan will decrease the number of enquiries on your credit report.
Raising your credit scores is possible as long as you are willing to put in the time and work to do so. In the meantime, if you need a home loan or a personal loan, the brokers at Mortgage House can help. Our bad credit loans offer competitive interest rates and are designed to fit your financial situation. We won’t approve you for a loan larger than your means.