How I Raised My Credit Score From 585 To 700 In 12 Months On A $30K Salary
I don't remember the exact moment that YOLO began to define my credit score. Maybe it was the time I bought that $400 game system for my brother that he stopped using after a month. Or the shopping spree I went on every other week because I “needed" new interview clothes, concert clothes, traveling clothes, brushing my teeth clothes and everything in between clothes.
Every time I headed to pay for these things, a ball of guilt formed in my throat. I knew I shouldn't have been spending money. I had JUST paid my card minimum to get my credit balance back to $32. Nevertheless, I shrugged my shoulders, yelled “WHY NOT?" and dug myself deeper into the debt pit of hell.
Living paycheck to paycheck sucks but it was a reality I had accepted after getting my first real job after college. Claiming I had no money, I still managed to travel, eat out, shop, enjoy concerts, and get my nails done regularly. But last year, I decided enough was enough.
Through the loans, the credit cards, and bad habits, a massive debt amount of $86,411.27 stared back at me.
Yes. You read that correctly. This financial burden had also left me with a piss poor credit score of 585.
So, after a major breakdown in my car when I watched my paycheck go to nothing, my best friend ordered Dave Ramsey's The Total Money Makeover for me. After reading it, my edges were not only snatched, they disappeared.
For the first time, I had a vision.
I wasn't becoming disciplined because it was responsible or fun (although it was eventually), but I was choosing to change a pattern in my family. I wanted to be free of dodging bill collectors, attracting high interest rates, and throwing away my check to four maxed out credit cards. I wanted to know what it was like to go into H&M without frantically checking my bank statement to see if I had enough. I wanted to stop the broke and boujee cycle. I wanted financial freedom.
With these new goals in mind, after 12 months, I was able to raise my credit score from 585 to over 700. This was all while earning $30K from my first real job. I had to struggle. I sacrificed the turn ups, girl trips, and even moved in with family to save on rent.
But I pushed myself to break free of a generational habit of “I'm bad with money" syndrome. This is what I learned along my journey from a credit score of 585 to over 700:
I Got Clear On What Happened To My Credit
If I wanted to create a plan, I had to know what I was working with. I realized that I had to face my debt head-on and truly understand my credit score.
Before I started The Total Money Makeover with Dave Ramsey, I sat down and saw what I had been spending most of my money on. The site I used was Credit Karma, which tracked all my credit, loans, and transactions. Can you guess where most of my money was actually going? After credit card bills, it was fast food and shopping.
This brought me to the realization that “paycheck to paycheck" was a choice that I was making because I somehow found coins for other expenses – not necessarily a reality I had to settle for. This helped me cut my budget down to include just the things I needed and pay fast food and shopping to dust.
I Put An End To Credit Limit Increases
This was one of my biggest mistakes ever. When I couldn't keep up with my bills, I would call the bank and ask them to extend my credit line.
Little by little, this dug me in my biggest hole. I thought by receiving more money, I would manage it better, but I was just wrapping more chains around my wrists. Those were truly moments of desperation and I knew I couldn't continue to put myself in a place that forced me to beg for more credit.
This meant I needed a tight budget so that I knew where every penny went. I even cut up my credit cards altogether. This physically forced me to stop depending on them.
I Accepted That Debt Could Not Be Conquered In A Day
Once I totaled all my debt and realized how huge of a mountain I had to climb, I knew I couldn't conquer it all in a day. Instead, I decided to try the debt snowball that money guru Dave Ramsey talks about.
Listing out ALL my debts from largest to smallest, I came face-to-face with this monster I had created.
I picked the smallest debt and just attacked it. That required some missed happy hours and trips to the mall, though. But once I paid off one debt, it created confidence and momentum for me to move on and keep going with paying off the other debts.
Closing Accounts Hurt Credit More Than It Helps
When I actually started knocking out my debt, I wanted to close EVERYTHING. “Just get those demon cards out my sight," I said.
But I learned that closing the accounts would only prove to hurt my credit. What you might not know is credit reports love when you've kept accounts for a long time. It shows that they can trust you.
So even when I began to pay off a credit card, I kept it open to help positively impact my score.
Know That Broke Friends Won't Be Very Supportive
Look, getting your credit score up is HARD. And I hate to say it, but my broke friends did not understand why I was "so serious" about getting in a better financial situation. I had to stop discussing my finances with my deeply-in-debt friends because I often got answers like:
"One purchase isn't gonna hurt anything."
"You have your entire life to pay back your loans."
"It's time to enjoy yourself."
They were like the Hooded Kermit advocating for staying in debt. They didn't mean any harm, but I knew that I didn't have peace. I was tired of going from check to check. I was tired of barely pulling enough pennies together to go on a sub-par vacation.
I had to avoid money conversations with the people who discouraged me from getting my life together. On the flip side, I found some accountable people who walked alongside me during the days I really wanted to quit.
A Financially Free Debt-Free Life Is Truly Possible
When I saw how low my credit score was, I realized that if I wanted to get control, I had to be all in on this financial commitment.
Getting out of debt can be so overwhelming and seem nearly impossible, but as I created a plan and prayed to God, I realized that this was something I could do on my own. Even if it took some time. I had to trust that the process would continually remind me of why financial freedom is something I deserved.
Conquering your credit score is a mindset and it isn't for everybody and I still have a long way to go. But with a budget, a vision, and some sacrifice, I am now able to breathe easier knowing that I'm setting myself up for success.
And I wouldn't change a thing.
Did you know that xoNecole has a new podcast? Hear more about this story and how xoNecole founder Necole Kane, along with co-hosts Sheriden Chanel and Amer Woods, are working to tackle their credit scores and debt on the latest episode of xoNecole's Happy Hour podcast. Listen now on Itunes and Spotify.
Featured image by Getty Images
Originally published on December 29, 2017
- how can i raise my credit score 100 points in 6 months | Credit Karma ›
- 7 Ways To Improve Your Credit Score | Bankrate.com ›
- 3 Steps Could Improve Your Credit by 100 Points — Fast - NerdWallet ›
- How can I raise my credit score fast? | Experian ›
- Boost Your Credit Score Fast With These 7 Moves | Money Talks News ›
- 11 Ways to Improve Your Credit Score | Credit.com ›
- 5 sneaky ways to increase your credit score | Clark Howard ›
- 11 Ways To Raise Your Credit Score, Fast ›
- How to Improve Your Credit Score | Experian ›
Alaina is a Las Vegas freelance writer and founder of the website GlowSZN, a post-grad survival blog for the lit and educated. Embracing the raggedy moments of adulthood, she is always looking to push the narrative of growth in God, becoming financially free and owning your truth in your 20's. You can follow her on Instagram or Twitter at @hotlaina_.
ItGirl 100 Honors Black Women Who Create Culture & Put On For Their Cities
As they say, create the change you want to see in this world, besties. That’s why xoNecole linked up with Hyundai for the inaugural ItGirl 100 List, a celebration of 100 Genzennial women who aren’t afraid to pull up their own seats to the table. Across regions and industries, these women embody the essence of discovering self-value through purpose, honey! They're fierce, they’re ultra-creative, and we know they make their cities proud.
VIEW THE FULL ITGIRL 100 LIST HERE.
Don’t forget to also check out the ItGirl Directory, featuring 50 Black-woman-owned marketing and branding agencies, photographers and videographers, publicists, and more.
THE ITGIRL MEMO
I. An ItGirl puts on for her city and masters her self-worth through purpose.
II. An ItGirl celebrates all the things that make her unique.
III. An ItGirl empowers others to become the best versions of themselves.
IV. An ItGirl leads by example, inspiring others through her actions and integrity.
V. An ItGirl paves the way for authenticity and diversity in all aspects of life.
VI. An ItGirl uses the power of her voice to advocate for positive change in the world.
Let’s make things inbox official! Sign up for the xoNecole newsletter for daily love, wellness, career, and exclusive content delivered straight to your inbox.
Rihanna Talks Shedding Expectations And Finding Balance As A Mother
Since becoming a mother in 2022, Rihanna has defined parenthood by her terms and hopes to pass that sense of autonomy on to her children.
For Vogue China’s April cover story, Rihanna shared her perspective on raising her two sons with A$AP Rocky, and how she hopes to preserve her children’s uniqueness, devoid of societal expectations.
"The most beautiful thing...is that [children] come into the world with their own individuality and sincerity, without any logic or conformity,” she told the publication. “Which usually makes you feel that you must fit into a certain group."
The “Work” artist, known for her trendsetting style and captivating persona, expressed her desire to support children in fully embracing their individuality and encouraging them to be whoever they want to be. "It's really beautiful to see and I want to continue to help them navigate that and make sure that they know they can be whoever they want to be,” she says.
She continues, “They should embrace it completely, because it's beautiful, and it's unique. I love them just that way."
From shattering music charts to shaking up the beauty industry, Rihanna has forged a path that has since created the “dream” life we see today. One that she says has made her parents proud of.
“I’m living my dream,” she continued. “My parents were very proud of that because they just wanted me to be happy and successful. So, I think the key thing is to find some kind of balance. Yes, balance is important. Do this and you get the best of both worlds. You can write your own life the way you want, and it will be beautiful. Sometimes, you just need to let go of everyone’s expectations and start living your own story.”
Rihanna, who shares sons, RZA, 23 months, and Riot, 8 months, with rapper A$AP Rocky, recently shared her vision for expanding her family in the future in Interview Magazine.
When stylist Mel Ottenberg asked about the number of additional children she hoped to have, Rihanna replied, "As many as God wants me to have.”
"I don't know what God wants, but I would go for more than two. I would try for my girl,” she adds. “But of course, if it's another boy, it's another boy."
Featured image by Neil MockfordWireImage