How to Raise Your Credit Score by 200 Points: Tips and Strategies

Your credit score is an important aspect of your financial life. A good credit score can help you get approved for loans, credit cards, and other financial products at favorable interest rates. However, if your credit score is low, it can make it difficult for you to access credit or result in high interest rates. In this blog post, we'll discuss some tips and strategies on how to raise your credit score by 200 points.

Tip 1: Credit Utilization

Credit utilization is the amount of credit you're using compared to the total amount of credit available to you. It's an important factor in determining your credit score. To improve your credit score, you should keep your credit utilization ratio below 30%. This means if you have a credit limit of $10,000, you should aim to use no more than $3,000.

One way to reduce your credit utilization is to pay down your balances. Another way is to request a limit increase from your credit card issuer. If you can get an increase in your limit, it will automatically lower your credit utilization ratio, which is beneficial for your credit score.

Tip 2: Authorized Users

Adding authorized users to your credit card account can also help raise your credit score. When you add an authorized user, their credit history and credit limit are reported to the credit bureaus. This can help boost your credit score, especially if the authorized user has a good credit history.

It's important to note that adding an authorized user should only be done with someone you trust and who will use the card responsibly. If the authorized user racks up a lot of debt or misses payments, it can hurt your credit score.

Tip 3: Disputing Negative Items

If there are negative items on your credit report, such as missed payments or collections, it can have a significant impact on your credit score. Disputing these negative items can help remove them from your credit report and improve your score.

To dispute a negative item, you'll need to contact the credit bureau that reported the item and provide evidence that it's incorrect or should be removed. This can be a time-consuming process, but it can be worth it to improve your credit score in the long run.

Bonus Tip: Unsecured Business Credit Cards

If you're a business owner, you may be interested in unsecured business credit cards. These credit cards offer a zero percent interest rate for the first six months to a year and do not affect personal credit scores. To qualify, you'll need to have good personal credit, but they can be a great way to obtain funding for your business without worrying about paying back borrowed money.

Conclusion

Raising your credit score by 200 points is not an easy task, but it's not impossible either. By following the tips and strategies outlined in this post, you can improve your credit utilization, add authorized users, dispute negative items, and even obtain unsecured business credit cards.

If you're interested in learning more about raising your credit score and other important financial topics, be sure to check out Broker Solutions. Our website features a wealth of content on a variety of topics, including the latest lending products, underwriting guidelines, marketing, sales, compliance, and technology. We provide valuable resources, tips, and strategies to help you grow your business and achieve greater success.

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