How to Achieve an 800+ credit score
Even though I feel a little cheesy sharing my credit score with the world, I feel it necessary to share since many folks struggle with their credit. However, it hasn’t been a linear path, nor has it been easy. It’s taken a long time to get my credit score to where it is, so I do everything in my power to protect and preserve it. The good news is you can too!
My History and Length of Time
Let me start off by prefacing I got my first credit card at the age of 18. Colleges are prime spots for offering free swag for credit card sign-ups. I fell for it then and that started my credit journey. I had no clue what I was doing and yes my credit score suffered because of the minimum payments I was making when I couldn’t afford to pay the balance in full. In addition, the late payments I would make when I would forget to pay my department store bills tanked my new credit. All BIG NO-NO’s. So my credit journey is likely similar to many others: using credit as an extension of income – the worst way to use credit. Credit should be used as a tool, but more on that later.
The late payments really affected my credit, as it utilized most of the credit available. As a young 20 year old, I didn’t understand that to responsibly use my credit card I was supposed to keep the credit utilization ratio on revolving accounts low. It’s one of the many things I didn’t realize about how credit works.
For me, the biggest factors negatively impacting my credit score were:
Making minimum payments (it never helped lower the balance because the next month I was adding more debt)
Paying late
High debt to available credit ratio (used up most of my credit)
Luckily, I made some changes. I realized the importance of my credit and started to get it together.
I began to set reminders for payments or set automatic payments so that all my bills were paid on time.
I started paying off the entire balances, or as much as I could so I could keep my credit utilization ratio low
I didn’t acquire any credit cards for a long time (or any new form of credit)
Making all those changes started to make a difference. I signed up for Credit Karma and began checking my credit report consistently. I made it a habit to check my credit score at least once a year to make sure everything looked good. I slowly started to see progress in my score. It took years to finally make it past the 800 mark! Hooray, let’s celebrate! 🥳
Here is how I maintain my credit score now:
I use my credit cards like debit cards for their rewards. However, the balance is always paid off. I got into the habit of making payments every week and that keeps my outstanding balance at $0 most of the time. I am able to use my credit card as a debit card because I spend within my means. If I don’t have money for it I don’t buy it. That last part is very hard work when I want to go over my budget.
I pay ALL of my bills on time ALL the time. Consistency is key here. If you’re not consistently paying your bills on time it will impact your credit score. Even one late payment has brought mine down. Set up reminders or schedule a time to pay your bills. I pay all of my bills on payday.
If you open a credit card keep it open even if you don’t use it. I don’t recall ever purposefully closing any of my credit cards. Some were closed by lenders because I stopped using them, but I didn’t notice that affecting my score. If it did it might have been minimal.
I’ve kept my credit utilization at practically zero since I don’t have any debt. But if you do need to carry debt make sure you keep your credit utilization at about 10%. The lower your outstanding debt balance the better!
I don’t apply for new credit often. Every new moon I’ll apply for a new credit card if I feel their rewards program is better than what I currently use. I recommend sticking to just 2-3 credit cards and using those faithfully versus constantly seeking new credit which does affect your credit score because of the hard inquiries.
Lastly, be patient and consistent. Credit scores are not made overnight. It takes time and hard work! I’m here to tell you YOU CAN DO IT!
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