My previous credit score was 697, now it’s 762. Woooo hoooo! In case you didn’t already know, I went bankrupt 10 years ago. It was a stupid thing to do and I’ve been carrying this burden around ever since then.
I was young, uninformed and trying to find a quick solution to what I thought was a huge problem. Never again. The one thing I learned from going bankrupt was that it isn’t an easy way out. It might get the phone to stop ringing, but it follows you around and haunts you. My credit haunt is finally over, and now I can see all the hard work over the last few years really pay off.
My credit score might not be in the 800’s, but it’s still pretty good. With more time and hard work, it’ll get even better. I figured it might be a good idea to share some of the things I’ve been doing that have contributed to my credit score, because a few years ago, I was hoping to get to the 600’s.
- I’ve been paying at least the minimum payment due on all of my payments, every time. Usually, I try to pay more than the minimum—even if it’s only a few extra bucks.
- Making on time payments every month. I make sure to pay them early as well, that way there will never be a late payment. I actually have 100% of on-time payments. This actually makes up the largest percentage of determining your credit score; 35% of your score is based on your payment history.
- Using as little credit as possible. Sure we might have X amount of credit available to us, but not using it really helps your credit score. Keeping a low percentage of the amount of credit you are using compared to the amount of credit you have available is the second largest factor in determining your credit score (30%). Right now, I’m currently using 9% of my available credit; I actually think it’s a bit lower than that since I just made another payment on the credit card. People range from saying to keep your credit utilization between 10-40%. Honestly, I figure the lower you keep it…the better your credit score will be.
- Not applying for more new credit cards or loans. I have plenty of credit cards and no matter what they say about it not having an impact on your credit score, I’d prefer to not find out. I’m really tempted now, since my credit score shot up, to get a better credit card with some great rewards—especially since my Best Buy MasterCard is out to get me. I’m not really concerned with getting lower interest rates since I’m into paying it off right away. If I don’t carry a balance, then the interest rate doesn’t really matter to me.
If you’re curious about your credit score, you can always go to Credit Sesame and get it for free.
Have you checked your credit score lately?