I Raised My Credit Score 87 Points in 4 Months — Here's Exactly How

Utilization is 30% of your score. Getting it under 10% can give you an immediate 30-50 point boost.

1. 1
   Calculate your total credit limit — Add up all your credit card limits. My total was $1,500 across two cards.
2. 2
   Aim for under 10% balance — That means carrying no more than $150 total across all cards. I paid my cards down to $50 each.
3. 3
   Pay your balance before the statement date — Most issuers report your balance on the statement closing date. Pay early so the reported balance is low. I set a calendar reminder for 3 days before closing.
4. 4
   Request a credit limit increase — Higher limit = lower utilization automatically. I called my issuer and asked for an increase from $500 to $1,500. They approved it in 5 minutes with a soft pull.
5. 5
   Never use more than 30% even if you pay in full — Even if you pay off the full balance monthly, if your statement shows high utilization, your score dips. Keep it low on paper.

Getting added to someone else's well-managed card instantly inherits their positive payment history.

1. 1
   Find someone with a long, clean credit history — A parent, spouse, or close friend who pays their card in full every month and has a low balance. I asked my mom — she'd had her card for 12 years.
2. 2
   Ask them to add you as an authorized user — They just need to call their issuer and give your name and Social Security number. You don't need the physical card.
3. 3
   Confirm the card reports to all three bureaus — Not all issuers report authorized users. Capital One and Chase do. Ask before adding.
4. 4
   Wait for the account to appear on your report — It can take 1-2 billing cycles. When my mom's card showed up, my average account age jumped from 1.2 years to 4.3 years.
5. 5
   Never charge anything on it unless you pay immediately — If you do use the card, pay the balance right away so you don't hurt the primary cardholder's utilization.

A secured card lets you build positive payment history when you can't qualify for an unsecured card.

1. 1
   Choose a secured card with no annual fee — I went with the Discover it Secured Card. No annual fee, 2% cash back on dining, and it graduates to unsecured after 8 months of on-time payments.
2. 2
   Deposit a refundable security deposit — Your deposit becomes your credit limit. I deposited $200, giving me a $200 limit. Discover returns the deposit when you graduate.
3. 3
   Use the card for one recurring bill only — I set mine to auto-pay Netflix ($13.99/month). That's it. Never use more than 10% of the limit.
4. 4
   Set up automatic payments in full — Never miss a payment. Autopay from your checking account ensures on-time payment history.
5. 5
   Wait for graduation to unsecured — After 8-12 months, most issuers return your deposit and convert the card. My limit went from $200 to $1,500.

Hard inquiries from new applications can drop your score 5-10 points each. Freezing prevents unauthorized checks.

1. 1
   Go to each bureau's freeze page — Equifax, Experian, and TransUnion all have a free 'security freeze' option online. I did all three in one sitting.
2. 2
   Create an account and set a PIN — You'll need a username, password, and PIN to lift the freeze later. Store the PIN somewhere safe — I used a password manager.
3. 3
   Confirm the freeze is active — Each bureau will confirm. Your credit is now locked. No one can open new accounts in your name without your permission.
4. 4
   Lift the freeze only when you apply for credit — When I applied for my car loan, I lifted the freeze temporarily (24 hours) at all three bureaus. It's instant.
5. 5
   Re-freeze after the application is processed — Don't leave it unfrozen. I re-froze mine the next day.

Paying a collection doesn't remove it — but a pay-for-delete agreement can get it deleted entirely.

1. 1
   Get the collection details in writing — Request validation of the debt. The agency must prove you owe it. I did this for an old medical bill of $340.
2. 2
   Call and ask for a pay-for-delete — Say: 'I'm willing to pay the full amount if you agree in writing to delete this account from all three credit bureaus.' Get everything in writing before you pay.
3. 3
   Negotiate the amount — Many agencies will settle for 50% or less. I offered $170 and they accepted. Get the deletion promise in the settlement letter.
4. 4
   Pay only after you have written agreement — Use a credit card or certified check. Never give electronic access to your bank account.
5. 5
   Follow up after 30 days — Check your credit reports to confirm deletion. If they don't delete, file a complaint with the CFPB.

Having both revolving (credit cards) and installment (loan) accounts shows you can manage different types of debt.

1. 1
   Check if you qualify for a credit-builder loan — Credit unions and online lenders like Self offer loans where the money is held in a CD and released after you pay it off. I used Self with a $500 loan.
2. 2
   Choose a loan with low fees — Self charges a $9 admin fee and $25 annual fee. The interest is low because the money is secured by your own deposit.
3. 3
   Make on-time payments for 12 months — Each payment is reported to all three bureaus. I set up autopay and never missed a month.
4. 4
   Receive the loan proceeds at the end — After 12 months, Self releases the $500 to you (minus fees). You've built credit and have a small savings.
5. 5
   Do not take out loans you don't need — Only use this if you need to build a thicker file. Don't pay interest just for credit. My score gained 9 points from the loan.