How to Raise Your Credit Score by 200 Points | MoneyLion (2024)

Credit scores are a critical factor of financial health. While one mistake can cause your score to take a considerable dip, sometimes, seeing your score spike takes time. Your credit score has many factors, one of which is the length or age of your credit history. If you are looking to help raise your credit score, you’ll want to review the following guide to help:

What makes up your credit score?

First, it’s important to understand the factors that go into your score and who decides on it. Let’s take a closer look at where your credit score comes from.

Your credit score is a report of how you’ve used credit. It lets companies like lenders and credit card issuers predict how much risk they would be taking if they loaned you money. Your credit report shows if you’ve ever missed payments, the types of loans you’ve taken out and if you have filed for bankruptcy in the past.

The three major credit reporting bureaus are Experian, Equifax, and TransUnion. These companies collect, store, and organize the data on your credit reports. Then they each issue you 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.

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

  • Your payment history (35%): Your payment history is a record of how often you pay your bills on time. Missed or late 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 who have 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

Now that you know what goes into your score, let’s take a look at what lenders consider a good score and a bad or poor score. 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. You’re a much more appealing candidate for loans and credit cards if you have a credit score in this range.
  • Very good: 740-799 points. This range is typically considered above average.
  • Exceptional: 800-850 points. At times, lenders may see people with exceptional credit scores as very dependable borrowers.

The maximum credit score that you can have is 850. However, also keep in mind you might not need a perfect score to achieve your financial goals. In fact, in 2022 the average credit score was 714 according to Experian, so don’t feel too much pressure if you are not in the 800 club.

Why is my score different on different credit bureaus?

Depending on what 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 assesses your payment history, credit utilization, credit history, credit mix, and inquiries at a different weight, resulting in a slight deviation in score from each company. You might notice a variation depending on when you look too. Each credit bureau could be on a different rotation when receiving your credit updates. For example, Experian could be updated in 7 days, and TransUnion could be updated in 15 days. All three scores could be different and not in sync, depending on when you look. Lenders also have the choice to report to their preferred credit bureau(s), which can positively or negatively affect your credit score.

How long does it take to build credit?

Building credit takes time; essentially, it is a lifelong process. The amount of time it’ll take to see your score rise depends on what types of items are on your credit report, your current score, how long you’ve had your accounts, and what steps you’re taking to raise your credit.

Your credit score will take at least thirty days to change because credit reporting bureaus usually only collect payment data once a month. However, it’ll take much longer to reach your goal if you’re trying to raise your score by 200 points. Patience is key here! It may take anywhere from six months to a few years to help raise your score by 200 points depending on your financial habits. As long as you stick to your credit-rebuilding plan and stay patient, you’ll be able to help increase your credit score before you know it.

Increase your credit score by 200 points Over Time

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

Using your credit card and paying it off every month is an excellent way to help boost your score. However, creditors want to see that you have experience managing multiple types of credit.

A credit card is considered a revolving type of credit. Revolving credit “refills” after you pay it down and allows you to use it again and again. As for non-revolving credit lines, you can only use those once. As soon as you pay off a non-revolving account, your lender closes your account. Personal loans, mortgage loans, and student loans are all examples of non-revolving credit types.

2. Get a credit builder loan

Consider a credit builder loan if you want to add a little diversity to your credit portfolio and use a method proven to help build credit. Credit builder loans are small, low-interest loans that can help you improve your score.

With some loan providers, you’ll get a sum in cash and can spend that money on almost anything, from home updates to catching up on bills. Then, you pay back the loan and interest with monthly payments. Your loan provider reports the payments to the credit reporting bureau. As long as you don’t fall behind, on time payments can help build your credit score.

3. Report bills to the credit bureaus

Did you know you can boost your credit with all types of payments? Not all bills are automatically reported to credit bureaus. Get in touch with each of your providers to double check.

4. Use a finance tracking service

Using 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. Make sure to explore and research various finance tracking services before settling on a single pick.

5. Make consistent payments

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

Missing payments can lower your score, so prioritize your payments with a new organization strategy. Sit down with all your loan and credit card statements and write down how much you owe on each account, your minimum payments, and your due dates.

Then, input the dates into your cell phone calendar or write them down on your desk calendar. You may also want to authorize autopay if your creditor allows it. Autopay automatically deducts your minimum payment on your account’s due date so you won’t have to remember it on your own.

6. Keep your utilization low

On top of keeping your payments low, you should also be mindful of keeping your credit 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%.

If this isn’t possible, consider asking your lender for a credit line increase. Increasing your total available credit automatically lowers your utilization rates. Be careful to avoid the “lifestyle creep” of overspending if you do get a credit line increase.

Improvements take time

Now that you understand the basics of credit, you can see that building it isn’t hard; it just takes time. Whether it is 200 points or 20, you won’t see results overnight while working to improve your credit score. Always pay your bills on time, keep your credit mixed and your utilization low, and be patient. Think of improving your score the same way as losing weight. You won’t lose ten pounds after a single day or even a week of eating right and exercising. Your credit score works the same way; it takes a pattern of positive habits to see results. While building your credit, remember that having an above-average score could help you get better rates on credit cards, mortgages, auto loans, and more.


How long will it take to raise my credit score?

Seeing your score raise can depend on when the credit bureaus update their records, how much debt you have, and your past payment history. The sooner you implement smart credit practices, the better of a position you’ll be to improve your score over time.

What are the biggest factors to improve my score?

Your payment history accounts for the largest percentage of your credit score. Making payments on time helps improve your credit score.

Why is my score different on different credit bureaus?

Each credit bureau uses a slightly different scoring system to determine your score and each updates their numbers at different times. These two factors can cause you to have different credit scores.

How to Raise Your Credit Score by 200 Points | MoneyLion (1)

Kaitlyn Wolf Kaitlyn Wolf is a freelance writer, among many other things. With a drive to build an incredible life, she is always looking for ways to make an impact and move her life forward. She currently manages spas and fitness centers, teaches hot pilates, creates social media ads, and does freelance content writing. In her free time, you'll find her working out, hanging with her dog, and adventuring outdoors.

How to Raise Your Credit Score by 200 Points | MoneyLion (2024)


How to Raise Your Credit Score by 200 Points | MoneyLion? ›

Pay Your Bills on Time: Consistently pay all your bills, including credit cards, loans, and utility bills, on time. Late payments have a significant negative impact on your credit score. Reduce Credit Card Balances: Aim to lower your credit card balances, ideally keeping them below 30% of your credit limit.

How to get credit score up 200 points fast? ›

With that in mind, here are seven ways to raise your credit score 200 points in less than five years.
  1. Learn How Credit Works and How To Use It. ...
  2. Always Pay Your Bills On Time. ...
  3. Pay Down Credit Card Debt. ...
  4. Avoid Closing Credit Cards Because It Will Lower Available Credit.
Dec 28, 2023

How to build a credit score of 200? ›

Increase your credit score by 200 points Over Time
  1. Use multiple types of credit. Using your credit card and paying it off every month is an excellent way to help boost your score. ...
  2. Get a credit builder loan. ...
  3. Report bills to the credit bureaus. ...
  4. Use a finance tracking service. ...
  5. Make consistent payments. ...
  6. Keep your utilization low.
Jun 30, 2023

How does credit score drop 200 points? ›

Credit scores can drop due to a variety of reasons, including late or missed payments, changes to your credit utilization rate, a change in your credit mix, closing older accounts (which may shorten your length of credit history overall), or applying for new credit accounts.

How to get a 700 credit score in 30 days? ›

15 steps to improve your credit scores
  1. Dispute items on your credit report. ...
  2. Make all payments on time. ...
  3. Avoid unnecessary credit inquiries. ...
  4. Apply for a new credit card. ...
  5. Increase your credit card limit. ...
  6. Pay down your credit card balances. ...
  7. Consolidate credit card debt with a term loan. ...
  8. Become an authorized user.
Jan 18, 2024

How can I raise my credit score 100 points overnight? ›

10 Ways to Boost Your Credit Score
  1. Review Your Credit Report. ...
  2. Pay Your Bills on Time. ...
  3. Ask for Late Payment Forgiveness. ...
  4. Keep Credit Card Balances Low. ...
  5. Keep Old Credit Cards Active. ...
  6. Become an Authorized User. ...
  7. Consider a Credit Builder Loan. ...
  8. Take Out a Secured Credit Card.

How to get a 720 credit score in 6 months? ›

Make all payments on time, keep credit utilization low, and give it time. Kikoff's tools provide an easy framework, but your financial behavior is ultimately the cornerstone of improvement.

How to fix a bad credit score? ›

Here are seven steps you can take to begin improving your credit score.
  1. Check Your Credit Score And Credit Report. ...
  2. Fix or Dispute Any Errors. ...
  3. Always Pay Your Bills On Time. ...
  4. Keep Your Credit Utilization Ratio Below 30% ...
  5. Pay Down Other Debts. ...
  6. Keep Old Credit Cards Open. ...
  7. Don't Take Out Credit Unless You Need It.
Feb 8, 2024

How hard is it to raise your credit score 200 points? ›

Improvement in your credit score is directly related to your financial activities. However, if you keep paying your debts on time and in full, you may see a change in your credit score by 200 points within six months to a few years.

How can I raise my credit score 200 points in 30 days? ›

Try paying debts and maintaining your credit utilisation ratio of 30% or below. There are two ways through which you can pay off your debts, which are as follows: Start paying off older accounts from lowest to highest outstanding balances. Start paying off based on the highest to lowest rate of interest.

How to raise credit score? ›

If you want to improve your score, there are some things you can do, including:
  1. Paying your loans on time.
  2. Not getting too close to your credit limit.
  3. Having a long credit history.
  4. Making sure your credit report doesn't have errors.
Nov 7, 2023

Why is my credit score 1? ›

Also known as “NA” or “not applicable”. CIBIL score - 1 means that no information about the borrower's credit history whatsoever. There is no information to report, hence this score is also known as “NH” or “no history”.

How many points is a 30 day late? ›

Minimize Credit Score Damage From Late Payments. Paying 30 days or more past due could drop your score as much as 100 points.

How fast can credit score go up? ›

The length of time it will take to improve your credit scores depends on your unique financial situation, but you may see a change as soon as 30 to 45 days after you have taken steps to positively impact your credit reports.

How fast does credit score go up after paying off a credit card? ›

How long after paying off debt will my credit scores change? The three nationwide CRAs generally receive new information from your creditors and lenders every 30 to 45 days. If you've recently paid off a debt, it may take more than a month to see any changes in your credit scores.

Is 650 a good credit score? ›

As someone with a 650 credit score, you are firmly in the “fair” territory of credit. You can usually qualify for financial products like a mortgage or car loan, but you will likely pay higher interest rates than someone with a better credit score. The "good" credit range starts at 690.

How long does it take to improve credit score 200 points? ›

Improvement in your credit score is directly related to your financial activities. However, if you keep paying your debts on time and in full, you may see a change in your credit score by 200 points within six months to a few years.

Can my credit score go up 200 points in a month? ›

While you can improve your credit score by 200 points in 30 days, it is also essential to remember that the improvement is based on your current credit status and mix. Some might experience quicker improvements, while others may need more time based on their unique credit histories and financial situations.

Can I raise my credit score 100 points in 30 days? ›

In fact, some consumers may even see their credit scores rise as much as 100 points in 30 days. Steps you can take to raise your credit score quickly include: Lower your credit utilization rate. Ask for late payment forgiveness.

How fast can I add 100 points to my credit score? ›

Here are 10 ways to increase your credit score by 100 points - most often this can be done within 45 days.
  • Check your credit report. ...
  • Pay your bills on time. ...
  • Pay off any collections. ...
  • Get caught up on past-due bills. ...
  • Keep balances low on your credit cards. ...
  • Pay off debt rather than continually transferring it.

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