checking credit score on mobile phone

How to Raise Your Credit Score: I Went from 584 to 696 in 8 Months

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Disclaimer: This article is for educational purposes only and does not constitute financial advice. Investing involves risk, including the potential loss of principal.

As of March last year, my credit score was 584.

While it wasn’t low enough to completely get denied for credit, it was low enough to get denied for apartment applications and get stuck with high interest rates.

By November, my score improved to 696. Now, it was pretty good.

No credit repair companies involved. No one had to pay $99 a month for them to dispute things. Just actions taken that truly impact credit scores.

I’d like to tell you how I improved my score and how I wasted my time.

Finding Why My Score Sucked

I started by pulling my credit report (it’s free at annualcreditreport.com; ignore the paid sites that try to scam you).

I found the following problems:

  • One 60-day late payment (ouch) from 8 months ago
  • 87% credit utilization
  • One collection account for $230 (old medical bill I forgot about)
  • Two years of credit history (this one can’t be fixed, unfortunately)
  • A recent credit application (this one sucks; it hurts your score temporarily)

Although I couldn’t fix them all, I was able to fix most of them.

credit cards in wallet representing credit usage
Managing credit cards responsibly

What Really Improved My Score

Getting Credit Utilization Under 30% (Biggest Impact: +48 Points)

Credit utilisation means the percentage of total available credit that you are using. As of last year, I had credit card balances totalling $3,200 and total credit card limits of $3,700, making for an 87% utilisation.

Utilisation under 30% is good, and under 10% is excellent.

What I did: I aggressively paid down my balances for 3 months, and I got my total credit card balance down to $980 (26% utilisation).

My score increased from 584 to 632, which is an increase of 48 points over a 3-month span, just due to lowering my credit card utilisation. I called my credit card company to increase the limit on my oldest card, and they increased it from $1,500 to $2,500. I also didn’t need to spend anything on the new credit; just having a higher limit added more available credit, which lowered my utilisation percentage.

Getting Added As An Authorized User On My Mom’s Card (+22 Points)

My mother added me as an authorised user on a card that she has had for 15 years with a perfect payment history, and she has great credit.

I was able to get 15 years of perfect payment history on my credit report overnight just because my mother is an authorised user on that card, and she is not even using the card because she didn’t need to give me a physical card. My score increased by 22 points in 6 weeks because I got added to one of my mum’s authorised user cards.

Trying to hack credit scores for better ones can be strange, but it can also be effective. Something you can try is to ask a partner or parent with really good credit to make you an authorised user. They can make you an authorised user and not even give you access to the card, which is sweet.

Paid Off the Collection Account (Smaller Impact Than Expected: +12 Points)

That $230 medical collection was hurting me.

I negotiated “pay for delete” with the collection agency over the phone, which meant that in exchange for the full amount, they would completely remove it from my credit report. Before I paid, I received it in writing.

I paid it. They removed it. And my score increased by 12 points.

I was honestly expecting more impact. I thought the score would be higher after a collection was removed. Apparently, paying off an existing collection doesn’t help as much as just avoiding the collection in the first place.

Set Up Autopay on Everything (+15 Points Over Time)

That 60-day late payment from 8 months ago? I couldn’t remove it. It will just stay on my report for seven years.

But I could make sure I never did that again. I set up autopay for at least the minimum payment on every credit card and loan.

That alone helped me make sure I never missed payments again.

After 5 months, my score increased by 15 points. I really just needed to give it time so all my new perfect payments would outweigh that old late payment.

No New Credit App (+15 Points by Not Losing Points)

You get a “hard enquiry” every time you apply for credit, which impacts your score by 3-5 points.

When I checked my score, I had applied for two cards and a car loan in the previous 6 months. Those enquiries hurt my score.

So I just stopped applying for credit. Let the enquiries age off.

Then, after 5 months, the impact was minimal, and my score had recovered those 15 points.

A strong credit profile is easier to maintain when emergency expenses are no longer handled with debt.

credit report document for credit score review
Reviewing a credit report to understand credit health

What Didn’t Help

Disputing Accurate Information

Read online that you could dispute negative items even if they’re accurate, and sometimes they get removed if the creditor doesn’t respond.

I tried disputing that late payment. The creditor responded with the documentation, and the dispute was denied. Late payment stayed.

You only dispute actual mistakes. Negative info with no mistakes is a waste of time.

Closing Paid-Off Credit Cards

I paid off one credit card and closed it right away because I was so proud.

Then, after that, I could not open a new credit line for 6 months. That decreased my total credit available (upped my utilisation) and decreased my average account age.

That scored hit was 8 points, and I had to call them and reopen the account. I was so embarrassed.

It is okay to keep cards if you are not using them. Just put them in a drawer. Just don‘t close them.

Obsessive Score Checking

Week after week, I would check my score in hopes of seeing movement.

It does not hurt to check your score, but that does not mean you should obsess over it. Your score updates monthly, not daily.

I stopped checking my score more often than once a month.

The Timeline: What Happened When

  • Months 1-2: Aggressive credit card payments. The score went from 584 to 615. (+31 points)
  • Month 3: Got added to Mum’s card as an authorised user. The score went from 615 to 637. (+22 points)
  • Month 4: Continued to pay down balances. The score went from 637 to 651. (+14 points)
  • Month 5: Paid off the collection account. The score went from 651 to 663. (+12 points)
  • Months 6-8: Continued to make perfect payments. The score went from 663 to 696. (+33 points)

Final Score: 584 to 696. Total points gained: +112 points in 8 months.

What I’d Do Differently

A single late payment cost me months of rebuilding. I should have set up autopay a long time ago.

Earlier on, I should have asked for credit limit increases. Just for asking, I could have got free points.

I should have gotten added as an authorised user sooner. I would have added that perfect payment history, but years earlier.

As the saying goes, the best time to learn is when you start doing and embrace the saying, “better late than never”.

Let’s discuss the concept of “average” vs. “good” vs. “excellent” when it comes to credit scores.

Let’s Work Towards 740+

Going from 584 to 696 is a larger deal than going from 696 and beyond because that initial jump gets you out of the area of constant denial and into the area of general approvals.

You can absolutely do this on your own. Those credit repair companies charge a monthly fee to do what you can do for free, which is to request modifications to your credit report.

You can do this for free, aside from paying any actual debts you owe.

Just do it, seriously. It’s not difficult, and you won’t have to pay $99 a month to some company for the privilege of doing what you can do on your own. It might be because you have no money. But it could be because you pay on time and have no large outstanding debts.

Be Patient. By November, my score had increased over 100 points – just from consistent actions taken over 8 months. Work your own clock, and you might achieve the same.
There’s no reason to wait, so start today.

Reducing debt through structured payoff methods often leads to gradual improvements in your credit score.

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