How I Raised My Credit Score By 250 Points

How I Raised My Credit Score By 250 Points

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.

Facebooktwittergoogle_plusredditpinterestlinkedintumblrmail
youtube

88 thoughts on “How I Raised My Credit Score By 250 Points”

  1. 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

  2. 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

  3. 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
    much appreciated.

  4. 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.

  5. 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!

  6. 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!

  7. 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!

  8. 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

  9. 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!

  10. 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!

  11. 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!

  12. 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..

  13. 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
    over time.

  14. 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!

  15. 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.
    Too cool!

Leave a Reply

Your email address will not be published. Required fields are marked *