I had already unfolded the climax in my previous blog, on how I was being denied higher education due to my own credit mistakes. This blog is essentially the return of the hero who fights with bad credit and lives happily after with a great credit score.
850. That was the number printed on my latest CRIF Credit Report. Read ahead to know How I Raised My Credit Score By 250 Points.
Credit Score = Trust?
One of the premises of a civilization or society is its need for safety. It is because of this need for safety from the wild did the early human start forming communities. Humanity has evolved and advanced a lot from them, but the basic need for safety is perennial. It is very important to have those few trustable companions or entities who make us feel safe.
Since the age of the Kings and the Landlords, the practice of lending also pivoted around the similar element of trust. Lending has transformed from being a local, personal referral based activity now into a very large industry backed by digital systems and a sense of trust emanating from the use of data sciences. The industry allows instant lending and peers to digital peer-to-peer lending on basis of data-backed trust that the person taking the credit will pay back after the pre-defined time. This data-backed trust comes from the “credit scores” provided by the Credit Bureaus by understanding behavioral patterns from the millions of records of individuals such as you and me.
I realized that I had to improve my credit score from 500 so that a bank can begin trusting upon me to repay its money. In my quest to improve, I began analyzing my credit report against the five major factors that form the basis for a credit score. And voila, I had devised a clear plan of action to seize control of my credit situation-
- Payment History : my credit report clearly reflected my negligence around making payments towards my credit card dues. I would generally pay up money only after many follow-ups from the credit card companies, perhaps this was one of the most important factors barring me to pursue my dreams. I immediately cleared pending dues on all of my credit cards and vowed to now pay full dues at least 3 days prior to the due date.
- Age of Credit : I had 4 credit cards. Since now I have to pay on all cards in time, I decided to close 3 of these cards. I decided to maintain the oldest credit card I had, as the higher age of credit means a better credit score.
- Credit Utilization : The average spend on each of these 4 cards was nearly 80% of the assigned credit limit. This meant that the credit utilization ratio was 80%, which ideally should be 30-40%. The credit card I chose to retain was linked to my salary account. My banker helped me get the credit limit of this card increased. This enabled me to enjoy higher credit just with one card, but have a low utilization. I crossed my heart to not use above 25% of the allowed credit limit at any point.
- Type of Credit : I pledged to explore a car loan (secured loan) and diversify from just having credit cards (unsecured loans). And the next year when I had a slightly better credit score, I took two additional loans, one for buying a car and the other for buying a laptop and paid them off in the same year. This allowed me to add different types of credit as well as provide better evidence of my credit behavior.
- Number of Credit Inquiries : This did not seem to be a problem for me, however, I have since then avoided unnecessarily applying for credit cards or loans.
12 months of discipline had helped me improve my score from mid 500s to 670, it helped me get a car loan but it wasn’t enough to help me fulfill my dream. After another six months of care, my credit score was above 750 and I was packing my bags to leave for an MBA. All I needed was a basic understanding of credit score and discipline to follow my plan. Last month I repaid my education loan but still continue to follow the rules I set for myself 5 years ago. As you read my story, let me tell my credit score as of today stands above 850.
Today, in parts of the world, your credit score can stand in your way of getting accepted as a tenant, employee or even spouse. Hence it is becoming paramount to manage your credit score to maintain your credibility not just for getting loans but for fulfilling your dreams.Don’t let your ignorance hamper your dreams.
Get Educated and Educate Others. Journey to happy credit starts here CRIFHIGHMARK CREDIT REPORT
About the Author: Subhankar Mishra works as Service Delivery Manager at CRIF High Mark, India’s largest Credit Bureau database.
88 thoughts on “How I Raised My Credit Score By 250 Points”
Quest bars cheap fitnesstipsnew1 quest bars cheap 516999410492780544
quest bars cheap
Hi there, this weekend is pleasant in support of me, as
this moment i am reading this impressive informative piece of writing here at my home.
Quest bars cheap fitnesstipsnew1 quest bars cheap 516999410492780544 quest bars cheap
Quest bars cheap fitnesstipsnew1 quest bars cheap 516999410492780544 quest bars cheap
Hi there, just became alert to your blog through Google, and
found that it is really informative. I am gonna watch out for brussels.
I’ll appreciate if you continue this in future. A lot of people
will be benefited from your writing. Cheers! Quest bars cheap fitnesstipsnew1 quest bars cheap 516999410492780544 quest bars cheap
Hello! I simply would like to offer you a big thumbs up for your great info you have got here on this post.
I’ll be returning to your blog for more soon.
If you are going for best contents like me, just pay a quick visit this web site all
the time for the reason that it presents feature contents, thanks
Hi there, i read your blog occasionally and i own a similar one and i was just curious if you get a lot of spam remarks?
If so how do you protect against it, any
plugin or anything you can advise? I get so much lately
it’s driving me insane so any support is very
Thanks in favor of sharing such a good idea, paragraph is
fastidious, thats why i have read it completely
It’s amazing in support of me to have a web site, which is valuable in favor of my experience.
Why viewers still make use of to read news papers when in this
technological world everything is presented on web?
Thanks to my father who told me regarding this blog, this
weblog is genuinely awesome.
I have been surfing online more than 4 hours today, yet I never found any
interesting article like yours. It is pretty worth enough for me.
Personally, if all webmasters and bloggers made good content as you did,
the web will be much more useful than ever before.
Asking questions are really fastidious thing if you
are not understanding something completely, however this
piece of writing presents nice understanding yet.
Wow that was odd. I just wrote an really long comment
but after I clicked submit my comment didn’t show up. Grrrr…
well I’m not writing all that over again. Regardless,
just wanted to say fantastic blog!
Hello, I wish for to subscribe for this website to take most
up-to-date updates, therefore where can i do it please
help. Descargar facebook
I travel all around the world for work, and it used to be really lonely. Now I can go onto Tinder and have a date lined up in a new city before I even get out of the airport!
It’s an remarkable piece of writing designed for all the online people; they will get benefit from it I am sure.
You’ve made some decent points there. I looked on the net
to find out more about the issue and found most individuals will go along with your views on this website.
I think this is one of the most vital info for me.
And i am glad reading your article. But want to remark on few general
things, The website style is ideal, the articles is really nice : D.
Good job, cheers
Do you mind if I quote a few of your posts as long as I provide credit and sources back to your webpage?
My blog is in the exact same area of interest as
yours and my users would certainly benefit from some of the information you provide here.
Please let me know if this alright with you. Many thanks!
What’s Taking place i’m new to this, I stumbled upon this I’ve discovered It positively useful and it has helped me out loads.
I’m hoping to give a contribution & help other customers like its helped me.
I don’t even know how I ended up here, but I thought this post was
good. I don’t know who you are but certainly you’re going to
a famous blogger if you aren’t already 😉 Cheers!
It’s in fact very complex in this full of activity life to listen news on TV, so I simply use web for that reason, and take the latest news.
I’m really enjoying the design and layout of your site.
It’s a very easy on the eyes which makes it much more enjoyable
for me to come here and visit more often. Did you hire out a designer
to create your theme? Exceptional work!
Amazing blog! Is your theme custom made or did you download it from somewhere?
A design like yours with a few simple tweeks would really make my blog stand out.
Please let me know where you got your design. Thanks a lot
Hi there! I know this is kind of off topic but I was wondering if you knew where I could locate
a captcha plugin for my comment form? I’m using the same
blog platform as yours and I’m having problems finding one?
Thanks a lot!
Excellent blog! Do you have any tips for aspiring writers?
I’m planning to start my own website soon but I’m a little lost
on everything. Would you recommend starting with a free platform like WordPress or go for a paid
option? There are so many choices out there that I’m completely confused ..
Any tips? Many thanks!
Hi there, I discovered your website by the use of Google whilst searching for
a related topic, your site got here up, it looks great. I’ve bookmarked it in my google bookmarks.
Hello there, simply was alert to your blog thru Google, and
found that it is really informative. I am going to be careful for brussels.
I’ll be grateful in the event you continue this in future.
Lots of folks can be benefited from your writing. Cheers!
If some one wants expert view about blogging and site-building after that i propose
him/her to visit this blog, Keep up the fastidious job.
Hello, yeah this article is genuinely fastidious and I
have learned lot of things from it about blogging. thanks.
Hi to every , for the reason that I am actually keen of
reading this weblog’s post to be updated regularly. It
consists of fastidious data.
I am really impressed along with your writing talents and
also with the format to your blog. Is that this a paid theme or did you customize it your self?
Either way stay up the excellent high quality writing,
it’s rare to peer a nice weblog like this one today..
Does your blog have a contact page? I’m having trouble locating it but, I’d like to shoot you
an e-mail. I’ve got some ideas for your blog you might be interested in hearing.
Either way, great site and I look forward to seeing it improve
Hello mates, its great article about teachingand
fully explained, keep it up all the time.
You are so interesting! I do not think I’ve truly read a
single thing like this before. So nice to find somebody with some original thoughts on this issue.
Seriously.. many thanks for starting this up. This web site is something that is required on the internet,
someone with a bit of originality!
You need to be a part of a contest for one of the most useful sites on the web.
I’m going to highly recommend this website!
Hello, i think that i noticed you visited my
web site thus i got here to go back the desire?.I am attempting to find issues to improve my web site!I guess its ok to use a few of
This design is spectacular! You most certainly
know how to keep a reader entertained. Between your wit and your videos, I was almost moved
to start my own blog (well, almost…HaHa!) Excellent job.
I really loved what you had to say, and more than that, how you presented it.
What’s up, every time i used to check web site posts here in the early hours in the dawn, for the reason that i enjoy to learn more and more.
Comments are closed.