My Journey to a Good Credit Score: Lessons, Struggles, and Winning Strategies

I still remember the day I checked my credit score for the first time. My heart raced as I opened the app, unsure of what to expect. Would it be excellent? Average? Or a complete disaster? Well, let’s just say it wasn’t great. That three-digit number stared back at me, reminding me of all the times I had ignored my finances, paid bills late, or simply didn’t understand how credit worked. It was a wake-up call I didn’t know I needed.

The Wake-Up Call

Back then, I had no idea what a good credit score even meant. I thought, “As long as I’m paying my bills, I’m good, right?” Wrong. A good credit score isn’t just about paying bills—it’s about how you manage debt, credit history, and financial discipline.

So, I did my research. Here’s how the range breaks down:

• 300-579: Poor (Uh-oh, that’s trouble.)

  
  

• 580-669: Fair (Not the best, but manageable.)

• 670-739: Good (Banks start trusting you here.)

• 740-799: Very Good (You’re in the elite club.)

• 800-850: Excellent (VIP treatment from lenders!)

At that time, my score was sitting in the fair range, which wasn’t the worst but wasn’t great either. I knew I had to take control of my finances and build a strong credit profile.

The Struggles and Lessons

Fixing my credit wasn’t easy. I faced several challenges along the way, each teaching me an important lesson.

1. Late Payments Haunted Me

A few missed payments from the past were dragging my score down. I had a habit of forgetting due dates, and each late payment left a mark on my credit history. I realized that timely payments are the biggest factor in your credit score—accounting for 35% of your total score. So, I set up auto-pay for all my bills to ensure I never missed another due date.

2. High Credit Utilization

I had a credit card with a ₹1,00,000 limit, but my balance was around ₹70,000. That’s 70% utilization, which lenders don’t like. Ideally, you should keep it below 30%. The problem was, I wasn’t just overspending—I was relying on my credit card for things I couldn’t afford. I focused on paying off debt aggressively and reducing unnecessary expenses. Slowly, my utilization dropped to under 30%, and my score started improving.

3. No Credit Mix

I only had one credit card, and that was it. I learned that having a mix of credit—like a credit card, personal loan, or EMI plan—helps boost your score. I took out a small secured loan and repaid it on time, which improved my score over the next few months.

4. Too Many Credit Inquiries

I used to apply for credit cards randomly, thinking it would help my financial flexibility. I didn’t realize that every time I applied, the bank did a hard inquiry, which slightly lowered my score. Too many inquiries in a short time make you look credit-hungry, and lenders see it as risky behavior. So, I stopped applying for unnecessary credit and focused on managing what I had.

The Turning Point

After six months of consistent efforts, my score jumped from fair to good. Here’s what worked for me:✔ Timely Payments – No more missed due dates.✔ Lower Credit Utilization – I paid off a chunk of my balance and kept spending in check.✔ Smart Credit Use – I started using my card only for essential purchases and paying it off in full each month.✔ Checking My Credit Report – I found one mistake on my report (a bill I had paid but was marked overdue). I disputed it and got it fixed.

The Reward

One year later, my credit score crossed 750. It felt like a superpower—I now had access to better loans, lower interest rates, and a stronger financial future. I even got a credit card with great rewards and perks, something I couldn’t qualify for before. The stress of worrying about loan approvals was gone.

More Challenges Along the Way

Improving my credit score wasn’t just about getting to a good number—it was about maintaining it. Here are some additional challenges I faced:

1. The Temptation to Overspend Again

Once my credit card limit increased, I felt the urge to spend more. It was a constant battle to remind myself that just because I have credit doesn’t mean I should use it all. I developed a budget and followed the 50/30/20 rule (50% needs, 30% wants, 20% savings) to stay on track.

2. Understanding Interest Rates

I used to ignore interest rates, assuming they didn’t matter if I paid my bills. But I realized that different cards have different APRs (Annual Percentage Rates). I switched to a low-interest card and started paying my balance in full every month to avoid interest charges.

3. Credit Age Matters

One mistake I almost made was closing an old credit card that I didn’t use anymore. Luckily, I learned that credit age plays a role in your score—the longer your credit history, the better. Instead of closing the account, I used it for small purchases and paid them off immediately.

Final Credit Tips

If you want a good credit score, here’s my advice:

• Always pay bills on time – Even one late payment can hurt your score.

• Keep your credit utilization low – Ideally below 30%, but under 10% is even better.

• Don’t apply for too many loans or credit cards – It makes you look desperate for credit.

• Check your credit report regularly – Mistakes happen, and they can be fixed.

• Be patient and consistent – Building a good score takes time, but the rewards are worth it.

• Use credit wisely – Treat your credit card like a debit card—don’t spend money you don’t have.

• Diversify your credit – If possible, have a mix of credit types (credit card, loan, etc.) to show responsible usage.

• Negotiate with lenders – If you ever miss a payment, call the lender and ask if they can remove the late fee—it works sometimes!

If I could turn my credit score around, so can you. Start today, stay disciplined, and watch your credit score climb! 🚀