How to Raise Your Credit Score By 200 Points

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How to Raise Your Credit Score By 200 Points

Tired of getting turned down for credit? Your past financial habits affect your ability to borrow money. Establishing a solid credit history can take months or years. Yet, it only takes one late payment to see your score drop. When your credit isn’t where you want it to be, learn how to raise your credit score by 200 points.

MoneyLion offers a free and convenient way to find offers from our trusted partners to help you improve your credit — such as credit monitoring, credit report disputes, and getting credit by paying bills. A good credit score can lead to lower interest rates and increased borrowing power on loans and credit cards.

What makes up your credit score?

Your credit report shows your payment history, the types of loans you’ve taken out, and whether you have a past bankruptcy. Three major credit reporting bureaus — Experian, Equifax, and TransUnion — collect and report your credit data.

Each credit bureau calculates a credit score from the information contained in your report. Credit scores are important because they allow creditors to see a snapshot of your credit history without spending time reading your report.

Credit reporting bureaus can use a few different methods to calculate your score. One popular model is the FICO model. The factors that go into your credit score include:

  • Your payment history (35%): Missed or overdue payments affect your score negatively, while on-time payments result in a higher credit score.
  • Your credit utilization (30%): Your credit utilization is the percentage of the total available credit you use every month.
  • Length of your credit history (15%): Typically, creditors trust borrowers with a long history of managing their credit. Keeping your accounts open longer could help raise your score.
  • Your credit mix (10%): Most creditors like to see that you have experience managing a few different types of credit. Diversifying your credit types could help raise your score.
  • New credit inquiries (10%): Borrowing a ton of money at once could be a red flag for some lenders. 

Five levels of credit scores

The FICO scoring ranges are as follows: 

  • Very poor: 300-579 points. Obtaining a credit card or loan with very poor credit is more challenging. 
  • Fair: 580-669 points. Lenders consider borrowers with a “fair” score to be higher risk. 
  • Good: 670-739 points. With a credit score in this range, you’re a much more appealing candidate for loans and credit cards.
  • Very good: 740-799 points. Scores in this range are above average.
  • Exceptional: 800-850 points. Lenders typically view people with exceptional credit scores as very dependable borrowers.

The maximum credit score is 850, but you don’t need a perfect score to reach your financial goals. In fact, Experian reports that the average credit score in 2023 was 715.

Why is my score different on different credit bureaus?

Depending on the type of loan you are applying for, the lender can use many companies that access risk. FICO, Experian, TransUnion, and Equifax are some of the most used bureaus. 

Each bureau evaluates your payment history, credit utilization, credit history, credit mix, and inquiries according to its own guidelines. So, credit scores vary based on the bureau. 

How long does it take to build credit?

Building credit takes time; in fact, it is a lifelong process. The time it takes to see your score rise depends on what’s listed in your credit report, your current score, how long you’ve had your accounts, and what steps you’re taking to raise your credit.

Increase your credit score by 200 points over time: 7 tips

Are you ready to start improving your credit score? Use these tips to help your credit score rise month after month.

1. Use multiple types of credit

Creditors want to see that you have experience managing multiple types of credit. You could boost your score when your report shows different installment and revolving credit accounts, such as auto loans, mortgages, personal loans and credit cards. 

2. Get a credit builder loan

A credit builder loan can add diversity to your credit portfolio and help build credit. Credit builder loans are small, low-interest loans that can help you improve your score. 

Make timely payments as your loan provider reports the payments to the credit reporting bureau. 

3. Report bills to the credit bureaus

Your credit report usually shows only payments made toward loans, credit cards, and other debts. However, paying other bills, like rent or utilities, could boost your credit score. 

4. Use a finance tracking service

A financial tracking service can help you stay on top of your finances. From banking to debt to credit scores, financial tracking services can make it easy to get a comprehensive overview in one place. 

5. Make consistent payments

Your payment history makes up about 35% of your FICO credit score. One of the best ways to improve your score is to build up a history of positive payments.

Late payments can lower your score. Be sure you know how much you owe on each account, your minimum payments, and your due dates. To avoid late payments, set your accounts up for autopay. 

6. Keep your utilization low

Credit utilization refers to how much of your available credit you use. Maxing out your credit cards could lower your score. A good rule of thumb is to keep your credit utilization below 30%. If it’s possible, make it a goal to keep it around 10%.

7. Dispute errors on your credit report

It’s frustrating when a mistake on your credit report causes your score to fall. Review your credit report to prevent any unnecessary decreases in your score.

Under the Fair Credit Reporting Act (FCRA), you can get a free copy of your credit report from each reporting agency — Equifax, Experian, and TransUnion. You can also submit a dispute for errors or incorrect information. If you are successful in getting these errors fixed, your score may improve. 

Take Steps to Raise Your Credit Score

Being denied credit is frustrating. Yet, even if your credit is in bad shape, you can take action to fix it. Decisive steps like paying bills timely or taking out a credit builder loan and repaying it on time can help raise your score over time.


How long will it take to raise my credit score?

Everyone’s credit situation is different, so there is no exact answer to how long it takes to raise your credit score. Depending on your credit history, it could take anywhere from one month to several years to improve your score.

What are the biggest factors to improve my score?

Payment history and credit utilization carry the biggest weight when calculating your credit score. Making timely payments accounts for 35% of your score. You can bump your score by keeping your credit card debt under 30% of your limit. 

Can I raise my credit score by 200 points in a year?

While you could raise your score by 200 points, nailing down the timeline can be nearly impossible. However, you can see a boost to your score over time when you take actionable steps, like limiting credit card usage and paying bills on time. 

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