How to Raise Your Credit Score 200 Points in 6 Months<\/p><\/div>\n
Reducing sky high credit card and revolving credit balances can quickly lift scores 50 points or more by improving this key utilization metric that accounts for 30% of your rating.<\/p>\n
<\/span>List All Cards and Balances<\/span><\/h3>\nMake a list of every open credit card and account along with balances owed, credit limits and interest rates. This total utilization snapshot allows you to create a focused paydown plan targeting cards closest to maxing out first.<\/p>\n
<\/span>Strategically Direct Payments<\/span><\/h3>\nBased on your balances breakdown, direct as much money as possible monthly toward paying down the accounts closest to 90% or more of the limit first, while paying minimums on the rest. As you free up credit room under limits, your utilization metric lifts.<\/p>\n
<\/span>Transfer High Rate Balances<\/span><\/h3>\nConsider shifting particularly large credit card balances from high interest rate cards to introductory 0% balance transfer cards if you qualify, allowing much bigger share of payments to dent principal balances first 6-12 months without accruing new interest. Watch for balance transfer fees.<\/p>\n
<\/span>Increase Credit Limits<\/span><\/h3>\nIf your maxed out cards won\u2019t approve you for enough of a credit line increase on their own to make an impact, call the issuer\u2019s reconsideration line to request an exception review. Provide any documentation needed to get approved for higher limits and utilization room.<\/p>