How Can I Raise My Credit Score 200 Points in 30 Days: 8 Expert Tips

Making the minimum monthly payments on time every month is the biggest thing you can do to improve your credit score. So, while there are more suggestions on seeing a massive improvement in your score, keep the details of this strategy from passing you by. Always pay your bills on time. And if you have some extra cash left over at the end of the month, apply the snowball approach to paying down debt and pay a bit extra to help reduce the interest you will pay over time. Remember, too, that late payments can cause your credit score to drop by 180 points and remain on your credit report for seven years. 

Set up autopay with your bank or the applicable credit cards to ensure you never miss a payment. However, pay attention to your utilization so that the automatic payment amount is enough to meet the minimum and keep your balance-to-credit limit ratio under 30% each month. 

2. Control Your Credit Utilization 

Credit utilization refers to the amount you owe on a credit card compared to your credit limit. Creditors want a credit balance to credit limit ratio of 30% or below. Maxing out your credit limits can negatively impact your score. Borrowers should reduce their credit usage to less than 30%. So, before you make a purchase, ensure you can cover your minimum monthly payment increase. Being mindful of how much credit you use can build your credit score both in the utilization factor and in new credit.

If you are not presently managing your utilization this way and want to improve the ratio, you can do one of three things:

• Stop spending on that credit card
• Pay down the balance so that your utilization is under 30%
• Ask for a credit limit increase on an existing card or apply for a new one.

3. Go After Your Debt 

The amounts you owe across all your loans and credit cards is important when a lender considers you for credit. Your debt-to-income ratio is calculated by lenders using the information you provide on your credit report, even though the utilization of your loans are not factored into your credit score. For this reason, getting control of your debts makes you more creditworthy and can also play into your credit score. Meeting your minimum monthly payment commitments can be harder if your debt gets out of control. 

Tried and true strategies to tackle your debt

When paying off your debt quickly, there are two tried-and-true strategies. The snowball method suggests you pay off the smallest of your loans as quickly as possible. Then, move on to the next one and follow the same approach. The avalanche approach focuses on paying the loan with the highest interest rate first. Both methods are highly effective and can help you pay off debt and save on interest.

Debt repayment strategies can be highly effective

You can also consider other debt repayments strategies, such as balance transfer credit cards, a debt consolidation loan, or a debt management plan through a credit counselor.

Don’t ignore accounts in collections

This all said, we want to include some insight regarding accounts that might be in collections. Please don't ignore these types of debts, as they can seriously hurt your credit score, causing it to go in the opposite direction that you desire. So if you have an account in collections, know that fixing it can help your credit score. One of the best ways to pay off a debt in collections is to contact your creditor and ask for assistance in developing a repayment plan. You can successfully negotiate away some of that debt by making a lump-sum payment or committing to a long-term payment plan.

4. Apply for a Credit-Builder Loan 

Credit-builder loans are different from traditional loans in that they are designed specifically to help you build your credit. This type of loan is usually for a small amount with a relatively short repayment period, six to 24 months. The money you borrow is put aside in an account while you make payments, and you receive the money back once you make all of the payments with interest. So essentially, you are borrowing from yourself for the purpose of building credit.

Paying off a credit builder loan helps build your history of on-time payments, positively impacting your credit score by about 35%. 

5. Apply for a Secured Credit Card 

It can be hard to build your credit fast, let alone get credit to begin with if you don’t have credit established in the first place. But you have to start somewhere, a secured credit card is a great way to build your credit score. These types of credit cards work just like a regular credit card but require an upfront deposit that serves as collateral for any purchases you make using the card. But not all secured credit cards are the same. Check for the following before you apply:

• Does the creditor report your payment activity back to the bureau?
• Is the required deposit one that you can afford?
• Are there any hidden fees or an early payoff penalty?
• Does the card allow you to upgrade to a traditional card once you have successfully met the initial commitment?
• What is the grace period if you are unable to pay the full balance shown on your statement?
• Overall, getting a secured credit card is a smart way to help you build credit. 

6. Become an Authorized Credit Card User

Asking a trusted family member if they can add you as an authorized user and signer on their credit card can help you build a credit score fast if you need more time to open your credit card account. They must contact their bank or card issuer to request to add you to the account. But before they pull the trigger, have them confirm with their bank that they will report the card's payment history. 

To ensure you build a good credit history and don’t get yourself into a worse financial situation, do the following:

• Work together to keep the account in good standing. 
• Don't spend more than you can reimburse the primary account holder for your purchases and any associated interest.
• Agree to a spending limit that ensures you can make consistent on-time payments. 
• Don’t borrow over 30% of the available credit line.

7. Put All of Your Payments to Work 

Homeowners and apartment tenants are responsible for far more expenses than just credit card and loan payments each month. We must pay for our mobile phone subscriptions, utility bills, and streaming services. But most of these activities don't get reported to the credit bureaus, which is a shame, especially if you manage each of these monthly expenses. Thankfully, it is possible to put all those payments to work.

To get credit for all of those monthly payments, there are two things you can do.

• One way to raise your credit score in 30 days is to sign up for a service such as Experian Boost that lets you get credit for paying monthly utility, cell phone, and streaming service bills on time. You can even get credit for streaming payments on Netflix, HBO, Hulu, Disney+, and Starz. You can also see if you can use your credit cards to pay your bills. This allows you to maximize any credit card perks and rewards. Just ensure your utilization stays the same.
• Start using your credit card to pay your utility bills, rent payments, etc. This can help demonstrate good payment history, driving up your credit score. However, be cautious so that the monthly amounts you add to your credit card balances are paid off each month and you don't inadvertently increase your utilization.

8. Hunt Down Credit Report Errors 

Per the Consumer Financial Protection Bureau, borrowers can obtain free access to their credit report once per year. Checking your credit report for errors is a great way to raise your credit score, not to mention be a responsible borrower. To obtain your free credit report, visit annualcreditreport.com. You can also sign up for a credit monitoring service through any of the three credit bureaus; Experian, Equifax, and TransUnion.

Once you access your credit report, be on the lookout for errors. Common credit report errors include things like:

• Inaccurate missed payment dates
• Incorrect dates of late payments
• Inaccurate balances on the account
• Inaccurate dates the account was opened or closed
• Accounts belonging to another person with the same or a similar name as yours (this mixing of two consumers’ information in a single file is called a mixed file)
• You may even find that a bureau has mistakenly listed you as deceased

Errors on your credit reports can lower your credit score, thus impacting your ability to get new lines of credit and favorable terms.

What Matters Most for Your Credit Score

FICO credit scores are calculated using the following criteria:

• Payment history: 35%
• Amounts owed: 30%
• Length of credit history: 15%
• Credit mix: 10%
• New credit: 10% 

Note that the majority of lenders use your FICO credit score. However, the VantageScore was developed in tandem by the three credit bureaus (Experian, Equifax, and TransUnion) to provide lenders with an alternate option vs. the FICO score. According to VantageScore, nine of the ten largest banks and 43 of the 100 largest credit unions use VantageScore credit scores in one or more lines of business.

The VantageScores (4.0 model) is calculated just a bit differently, looking at the following factors when determining your credit score:

• Payment history: 40%
• Depth of credit: 21%
• Credit utilization: 20%
• Balances: 11%
• Recent credit: 5%
• Available credit: 3% 

How Often Does Your Credit Score Update?

Your credit score updates every 30 to 45 days, based on when your creditors report information to the bureaus. However, your score can update more frequently if you have multiple credit cards, loans, etc. For this reason, borrowers should develop the habit of checking their credit scores more frequently. Many banks and creditors provide free access to credit scores as one of their perks. So, check to see if your financial institution gives you access. If not, sign up for a credit score service through one of the bureaus. 

Remember, however, especially if you want to increase your credit score by 200 points in 30 days, that your credit score will always fluctuate. A drop of a few points here or there, or an increase of the same, is not something to be alarmed about. Instead, watch for sizeable changes to your credit score, especially when they happen month after month. A large drop in your credit score indicates you should review your credit report for errors.

How Many Credit Points Do You Gain a Month?

So let’s determine whether your score can increase by 200 points in just a month. The average FICO Score in the U.S. was 714 in 2022, unchanged from 2021. So, you can see that there is quite a gap between the 850-point ceiling and where borrowers are today. And the truth is that it’s a pretty difficult feat to close that gap, let alone improve your score by 200 points. The closer you get to an excellent score of 850, the harder it will be to close the gap. So, if it were that easy to improve your score by that much so quickly, more borrowers would be doing it.

However, there are things you can do to get your credit score to rise fast.

• A credit builder loan could increase your score by as much as 60 points over the course of one or two points.
• If bankruptcy rolls off your credit, it can improve your score by 30 to 100 points.
• Hard credit inquiries sit on your credit report for one to two years. When these roll off, your score can improve by five to ten points each time.
• Signing up for Experian Boost can improve your score by 12 points.

The key to improving your credit lies in patience. If you pay your bills on time each month, keep utilization under 30%, and stay mindful of new credit, your score will start to climb.

The Benefits of Boosting Your Credit 

Improving your credit score can greatly improve your spending ability. An improvement over time of 200 points can move your credit score into a new ranking, making you look more favorable to creditors. 

The FICO credit score ranges are: 

• 300 to 580: Poor
• 580 to 669: Fair
• 670 to 739: Good
• 740 to 799: Very good
• 800 to 850: Exceptional 

You can see that the average score of 714 that we mentioned earlier falls nicely in the middle of the good score range. If you have a credit score in the poor range, you will not enjoy the same lower interest rates, higher borrowing limits, or rewards and perks as someone whose credit score falls in the exceptional range. 

Better Interest Rates

Your better credit score will also give you access to better interest rates. For example, consider personal loans for fair credit with the caveat that interest rates can fluctuate depending on the state of the economy. Compare those same rates for personal loans with good credit. With fair credit, you are far more likely to pay a higher interest rate than good or excellent credit.

As you can see, the better your credit score, the lower (better) your interest rates will be.

Higher Credit Limits 

Just as a better credit score will make you eligible for lower interest rates, you may also be able to borrow more. When lenders look at good and excellent scores, they believe you have proven that you are financially secure and creditworthy. As such, they'll review your debt-to-income (DTI) ratio, and if they believe you have the capacity in your budget, they'll approve you for a higher credit card limit or line of credit.

This doesn't mean, however, that you should always accept a higher credit limit. In You can request a lower credit limit if it makes sense for you. Lowering the limit on a credit card might also make sense if you want to open a new credit account with the same card issuer. In some cases, your card issuers will want to limit the total available credit they'll extend to you. You also might want to lower your credit card limit to reduce your temptation to spend more money. If you decide to lower your credit limit, however, just be aware that lowering your credit limit on your credit card increases your utilization rate.

More Housing Opportunities 

Landlords look at credit scores and your credit report as part of the screening process. Your credit history can show them how you've managed money in the past and help them determine whether you might be a responsible tenant.

Your credit score can also directly impact the interest rate you could get on a mortgage, car loan, personal loan, or credit card. Let’s take mortgage interest rates as another example. 

Insurance Options 

A higher credit score decreases your car insurance rate, often significantly, in almost every state and with almost every insurance company. Insurance companies want to understand your credit score because a higher score gives them more confidence that you will pay your insurance premiums on time.

Getting a quote, however, does not affect your credit. This said, when quoting you insurance rates, insurance companies look at more than just your credit score. They will also consider:

• Your driving record
• Where you live (and where the car is kept when not in use)
• Your age, gender, and marital status
• The type of vehicle you're insuring (luxury vehicles can cost more to insure, yet various safety features on cars can help lower the amount you pay)
• The types of insurance you want, coverage amounts, and deductibles

Better First Impression 

The last time you applied for a job, you might have been surprised to find out that your prospective employer checked your credit score. Employers conduct background checks during the hiring process to protect their employees and customers. Not only do employers want to eliminate candidates with criminal histories such as a background of theft or embezzlement, but they also look at your credit score as it is a reliable snapshot of how a potential candidate handles their responsibilities.

Get Help with Improving Your Credit 

As we have indicated, boosting your credit overnight or raising your credit score by 200 points in 30 days is a pretty big feat. Rather than focusing on a specific number, it may be better to focus on the various strategies and tactics that are proven to improve your credit score. If you are focused on seeing that credit score increase, try these approaches.

• Never miss a payment
• Pay more than the minimum due whenever possible. 
• Don’t spend anywhere close to your credit limit. Keep your balance at 30% or less than your credit limit.
• Develop a long credit history. The longer you have credit, the stronger your credit score can be
• Only apply for credit when you need it. 
• Pay attention to your credit mix. Having too many credit cards or multiple personal loans doesn’t look too good to future creditors. 
• Keep an eye on your credit reports by checking it annually. And, check your credit score once a month if you can.
• Keep credit lines open after they are paid off. Keeping a credit line open, even with a low or zero balance, can help you protect that credit utilization.

If you are feeling overwhelmed, consider credit counseling to help you get your finances in order. Credit counselors can advise you on your debts, help you develop a budget, and provide money management workshops to set you on a path toward financial success. 

Final Word

We're not going to sugarcoat it for you. A credit improvement of 200 points in 30 days may or may not be possible, depending on your situation. Committing to good financial habits can make the sustainable changes you need to improve your credit score. Pay your bills on time, manage your utilization, and don't bite off more than you can chew. One of the best ways to achieve a better credit score is to practice diligence and patience. 

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