How I Raised My Credit Score By 168 Points

How I Raised My Credit Score By 168 PointsMy debt repayment plan officially started again in January 2015. I vowed to get current on all my bills and begin the process of eliminating my debt. So far it has been an interesting journey. Besides seeing the numbers get a little smaller each month, something else happened. My credit score went up by 168 points in only eight months. That was amazing. When I checked my score last August I was in complete shock to see that much improvement. In today’s post, I want to share with you some things that I did when I raised my credit score.

Get Current

The first thing that I did was get current on every bill that I had. It didn’t matter if it was a student loan or credit card bill. I made sure that I got up to date with each and every one of them. I also set up automatic payments for a couple of my bills. That was huge for me. I’ve never had the discipline to do that in the past, but I was focused on making this happen. 35% of your credit score is your payment history. I had to make sure that my payment history was getting better.

Stopped Using My Credit Cards

The next thing that I did was that I stopped using my credit cards. By just paying on them, my credit utilization ratio started going down. I’m not at the recommended 30% yet, but I am damn sure lower than the 90% that I was last year at this time. With hard work, I should be under 50% by the end of the year.

Add Extra Money

I also started adding extra money to all my debts. I’m not sure how much that helped, but it was something that I had to do. Side hustles were the main way that I was able to get extra money. If you need some ideas, check out this post titled 40+ ways to make extra money this month.

I’m still amped at how much I raised my credit score in 8 months. I’m proof that even if you have thousands of dollars of debt, you can still increase your score. If you have a low credit score, I want you to realize that you can raise your score too. You just need to create a plan. Remember, 65% of your credit score consists of your payment history and the amounts owed.

Credit Sesame

One tool that I use when I’m looking at my credit score is credit sesame. Credit Sesame has a financial debt analysis tool that shows you your total debt. It then breaks the debt down into categories such as credit card debt, student loans, and others.

Credit Sesame also goes into detail about your credit score and credit report. They also give you several credit recommendations. Those recommendations could be credit cards that you can sign up for or personal loans that can help you pay off high-interest debt. Did I mention that credit sesame is free to use? All you have to do is sign up.

If you’re interested in getting your credit score in order click here

What is the most that your credit score has gone up in a relatively short time? Do you wish your score was higher?

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  1. Congratulations Jason!! Hard work+discipline=results. I wonder how things will look by December?

  2. You are on a roll Jason!

    I applaud your commitment and dedication. It will pay off one day soon.

    In the UK, many students leave university in debt. Not the ideal way to start out but what is the alternative – refrain from attending university and limit their opportunities?
    Phoenicia recently posted…How much do you utilise apps/systems to assist with planning?My Profile

    • There are a few alternatives. One is going to a community college for two years to lower the debt. Another is to make the best grades possible in high school so that you are able to get multiple scholarships.

  3. Well done Jason, thanks for sharing
    You have worked hard I guess.
    I really like your well-structured approach to everything
    Kristina Rylova recently posted…Inspiring young female leaders to followMy Profile

  4. Congratulations Jason – that takes a lot of discipline. I hope you’ll update us by the end of the year, that should prove interesting. What a motivator you are.
    lenie recently posted…Lavender Seasonings, A Gourmet’s DelightMy Profile

  5. You are kicking butt, Jason! I admire your dedication and perseverance to make this happen! Yahoo on the new credit score!
    Rose Mary Griffith recently posted…Blaming Your Evil Twin & Other Fun EscapesMy Profile

  6. Congratulations on improving your credit score like that. I’m sure there’s a lot of people out there who would do well to follow your advice.
    Ken Dowell recently posted…(Nearly) Live at SXSW: Is This What the Future of Media Looks Like?My Profile

  7. Congratulations on having a plan to reduce your debt and sticking to it. The credit bureaus can be very finicky about how they calculate your score. I don’t have credit card debt, but my credit score went down slightly because I had too many inquiries about my credit rating in the past 12 months. That’s because I moved to a new state and your credit gets checked by your new landlord, your bank, utilities, etc. That I have no control over and it seems like a very arbitrary reason for the credit bureaus to lower your score.

    • The credit score knock for credit checks is only temporary. Although you can see the credit checks for the next two years, the credit checks only count against your score for the first year. In that time frame, the first six months will have the largest impact.