How I built up my credit score to nearly 800.

A Thread.

I had bad credit 4 years ago. It was somewhere in the mid 500s. I’m here to tell you that all credit can be repaired when you take the right steps.

Good Credit = More Leverage = More Purchasing Power

1) I got serious. I took out a secured credit card from my local bank, I put $500 on it. This started building my revolving credit. I made sure to only use up to 30% of the credit limit and pay it off each month.

2) I stayed away from installment debt (except a mortgage). Things like student loans, car notes, department store cards. Those don’t help your credit. I only stuck with revolving credit such as credit cards.

3) I got more unsecured credit cards that substantially increased my credit limit. Using the same principles I only used up to 30% and paid them off in full each month.

4) I paid off all of my collections from my youth. Didn’t have to do this but I did. It showed creditors I’m responsible now.

5) I paid on time every month. In other words I never missed a payment no matter what. That’s 35% of your score right there.

6) I just let time do it’s thing - never maxing out my cards. I only used my cards if I could actually pay for it in cash (three times over).

I also only applied for credit once or twice a year.

In 4 years it bumped up to nearly an 800.

With this type of score I’ll have no problem getting loans to acquire rental properties.

It’s not hard to get a decent credit score - you just have to have the right mix of credit, pay on time every month, and utilize less than 30% of your total credit limit.