How Can I Raise My Credit Score by 200 Points?
Individuals interested in increasing their current credit score may want to learn more about how they can raise their credit score by 200 points. Luckily, there are a wide variety of methods individuals can use to begin increasing their credit score, including the following examples:
- Ensuring there is no contestable, disputable, or unfair information on their credit reports
- Decreasing or eliminating personal debt, including high credit card balances
- Keeping all existing credit cards at a low balance
- Paying all bills in full and on time every month
- Clearing bad credit history
- Limiting credit and loan applications
- Avoiding the accrual of debt
Why Are Credit Scores Important?
Credit scores are numbers that reflect an individual’s financial history. Bill payments, debt, credit cards, loans, and financial hardships can all affect an individual’s credit score. Mortgage providers use a home loan applicant’s credit score to determine their overall risk factor as a borrower, their borrowing power, and if they can become approved for the loan in question.
Potential borrowers with high credit scores will typically be seen as low-risk borrowers and can find themselves becoming approved for loan applications easily. Opposingly, potential borrowers with low credit scores will be seen as high-risk borrowers and may have trouble gaining approval for a loan.
In general, mortgage providers like their applicants to have credit scores between 500 and 700. The closer to 700 an individual’s credit score is, the better.