Having a low credit score can be detrimental to your financial health. Getting a loan, buying a car or a house can become more difficult if you don’t have good credit. You can increase credit score by 200 points or more if you follow the long-term strategies highlighted below.
Obtain a Copy of Your Credit Report
This is one of the most important steps when trying to increase credit score by 200 points. Obtain a comprehensive credit report for your account so you can have the data to conduct a deep dive into what’s hurting your score.
A 3-in-1 report is one of the most popular credit score reports that shows you your FICO score between a range of 300 and 850. Ideally, you want to keep your score above 700, as anything under 500 indicates that you’re not a trustworthy borrower.
Lenders like banks and credit card companies may not offer you favorable rates, and might even reject your application.
Look Out For Inaccurate Details in the Report
You need to find and fix the holes that make up your score. Many people find inaccuracies and mistakes when they evaluate their comprehensive report. Draft a letter to the agencies, or schedule an in-person meeting with a consultant who can help you resolve your errors.
If gone unnoticed for too long, your credit score may drop even more! That’s why it’s important to challenge erroneous information on your credit report and take action now.
Work With a Credit Score Consultant
A credit score consultant like Go Clean Credit can help you figure out what steps you need to take in order to increase your score. These could include restructuring your debt, making payments on time, or managing your savings vs. expenses on your account.
Consultants provide customized insights to help with your individual case. They can increase credit score by 200 points over time and provide real-world strategies that work.
Pay Off Your Debts on Time
Before taking on more debt, you should pay off your existing ones and make all payments on time. Frequently delayed payments can burn a hole right through your credit score. If you don’t fix this now, this could prevent you from obtaining a good rate on your next loan.
Paying off your credit cards, loans, car payments, etc. on time is the best way to increase your score significantly.
Get a Credit Booster Card
This is a smart way to boost your score long term. Get a credit card on your account and start making smaller monthly payments on it. Some good examples include things like rent, electric bills, etc. that can be paid monthly without much hassle.
You may not qualify for a regular card with a low score. However, you can easily obtain a prepaid credit card if you’re willing to make a small financial investment.