How I Improved My Credit Score in 6 Months: A Personal Journey | FR Molniya
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How I Improved My Credit Score in 6 Months: A Personal Journey

Introduction

When I first checked my credit score six months ago, I was shocked to see how low it was. I had been neglecting my finances for years, and it finally caught up with me. Determined to improve my financial health, I set a goal to raise my credit score by at least 100 points. Here’s how I did it.

Step 1: Understanding My Credit Report

The first thing I did was get a copy of my credit report from all three major bureaus: Equifax, Experian, and TransUnion. To my surprise, I found several errors that were negatively impacting my score. I disputed these inaccuracies, and within a month, some of them were corrected, giving my score a small boost.

 

Step 2: Reducing Debt

Next, I tackled my outstanding debts. I prioritized paying off high-interest credit cards while making minimum payments on other loans. Using the debt avalanche method, I paid extra on the card with the highest interest rate, then moved on to the next. This helped me reduce the overall amount owed and positively impacted my credit utilization ratio.

 

Step 3: Paying Bills on Time

To avoid any further hits to my credit, I made sure to pay all my bills on time. I set up automatic payments for my utilities and credit card bills, so I wouldn’t miss any due dates. Each month of timely payments added a few more points to my score.

 

Step 4: Limit New Credit Applications

Although I was tempted to apply for new credit to improve my utilization rate, I knew that hard inquiries could temporarily lower my score. I avoided applying for any new loans or credit cards during this period to maintain stability.

 

Conclusion

After six months of consistent effort, my credit score increased by over 120 points. It wasn’t an easy journey, but it was worth it. The lessons I learned along the way not only improved my score but also gave me better financial habits. If you’re in a similar situation, start by understanding your credit report and making a plan to improve it step by step.



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