How to Raise Your Credit Score by 200 Points or More
Financing a car in St. Louis with poor credit is certainly possible, but having good credit makes the process a lot easier. Raising a credit score 200 points can move you from “Bad” credit to “Good” credit, which translates to much lower monthly payments and lower interest rates! But, how long does it take to raise your credit score, and what do you need to do to put your best foot forward? Let’s go into the process of how to raise a credit score by 200 points.
Credit Scores 101
Before we go into how to raise your credit score by 200 points, let’s start out with how you got your current credit score. Your credit report tells potential lenders how responsible you have been with your previous credit allowances. If you’ve been prompt with payments, your credit score will be much higher than someone who has skipped payments. If you’ve been prompt with your payments, your credit score will be much higher than that of someone who has skipped payments. You’ll also have an easier time achieving a credit score of 800 or higher. Take a look at the typical FICO scoring ranges:
- Exceptional: 800-850
- Very Good: 740-799
- Good: 670-739
- Fair: 580-669
- Very Poor: 300-579
Raising a credit score 200 points could move you from “Very Poor” to “Very Good” — and that leads to better financial opportunities for you.
How Long Does it Take to Raise Your Credit Score?
How long does it take to raise your credit score to the good credit range? Typically, it takes a full month to make any changes at all. A large change could take anywhere from 6 months to several years. While the following tips will help to put you on the right track, remember that slow and steady will win this race.
- Building Credit: Your payment history plays a big role in your credit score, so demonstrating responsibility on a credit building loan can boost your score. Consider both revolving and non-revolving types of credit for a well-rounded package.
- Staying Consistent: Don’t leave any room for error when it comes to repaying those bills. Stay prompt on your payments by writing reminders on your calendar, setting cell phone reminders, or enabling autopay on your bills.
- Reducing Utilization: Credit utilization also factors into your credit score, and lenders prefer you to use less than 30% of your available credit – but 10% or less is even better. If you can’t reduce utilization, ask your lender for a credit increase to bring your total down.
Find Out More with Green Light Auto Credit
We’ve gone through the basics, but do you want personalized recommendations on how to raise your credit score by 200 points? The experts at Green Light Auto Credit can help Herculaneum and Florissant drivers find the right options for their unique needs. Contact us to get started today.
