Did you know that nearly 40% of Americans have no clue what their credit score actually is? I used to be one of them! For years, I thought credit scores were just some mysterious number that banks used to torture people trying to buy cars or homes. Boy, was I wrong about that.

Here’s the thing—your credit score isn’t just some random number. It’s basically your financial reputation score, and trust me, it matters way more than I ever thought it would when I was younger.

My Wake-Up Call (aka The Embarrassing Car Dealership Incident)

So picture this: I’m at the dealership, all excited about getting my first decent car. The salesperson comes back from running my credit and gets this weird look on their face. My score was 542.

I’ll never forget how that felt. The interest rate they offered me was absolutely insane—like 18% or something ridiculous! That’s when I realized I needed to get serious about credit score improvement, because apparently being clueless about it was costing me real money.

What Actually Moves the Needle on Your Credit Score

After that embarrassing moment, I dove deep into understanding how this whole system works. Turns out, FICO uses five main factors to calculate your score, and some matter way more than others.

Payment history is the big kahuna—it’s 35% of your score! This one seems obvious now, but younger me didn’t really think missing a credit card payment by a few days was a big deal. Spoiler alert: it was.

Credit utilization comes in second at 30%, and this is where I made my biggest mistakes initially. I was maxing out my cards regularly, thinking as long as I paid them off eventually, everything was cool. Nope! Keeping your balances below 30% of your credit limit is what you’re supposed to do, and ideally even lower than that.

The Changes That Actually Worked For Me

Okay, so after doing my research, I started making some actual changes instead of just feeling sorry for myself. First thing was setting up autopay for everything—seriously, everything.

I know autopay sounds basic, but when you’ve got multiple cards and bills, it’s easy to space out on one. Missing payments was killing my score, and this one simple fix probably added 50 points over six months. Not even exaggerating!

Next, I tackled my credit utilization problem. Instead of waiting for my statement date to pay off my cards, I started making multiple payments throughout the month. This kept my reported balances way lower, even though I was spending roughly the same amount overall.

The Strategy Nobody Told Me About

Here’s something that helped me a ton: I called my credit card companies and asked for credit limit increases. At first, I thought this was sketchy or something, but it’s totally normal! When your limits go up but your spending stays the same, your utilization percentage drops automatically.

Within about three months of doing this, my score jumped from the low 600s to almost 700. I was pumped!

Mistakes I Made Along the Way (Learn From My Pain)

Real talk—I messed up a few times during my credit repair journey. The biggest mistake? Closing old credit cards that I wasn’t using anymore.

I thought I was being smart and responsible by getting rid of temptation. What I didn’t know was that closing accounts reduces your available credit and can shorten your credit history length. My score actually dropped about 20 points when I closed my oldest card. Face palm moment for sure!

Another thing that bit me was applying for too many new credit accounts at once. I got excited about cashback rewards and applied for like four cards in two months. Each application triggered a hard inquiry, and my score took another hit. Patience isn’t my strong suit, apparently, but I learned that lesson the hard way.

Monitoring Your Progress (Without Becoming Obsessed)

Once I started actively working on improving my credit, I became a bit obsessive about checking my score. Like, multiple times per day obsessive—which is totally unnecessary, by the way!

These days, I use a free monitoring service and check maybe once or twice a month. That’s plenty. Your score isn’t gonna change drastically overnight anyway, so constant checking just adds stress for no reason.

The important thing is catching any errors or fraud quickly. I actually did find one mistake on my report—a late payment that wasn’t mine—and disputing it was easier than I expected. Got it removed within about 30 days, and that alone added another 15-20 points to my score.

Your Turn to Level Up Your Financial Game

Look, improving your credit score isn’t rocket science, but it does take some patience and consistency. The strategies I’ve shared here worked for me, taking my score from embarrassingly low to actually pretty decent over about 18 months. Your mileage may vary depending on your starting point!

Remember that everyone’s financial situation is unique, so feel free to adapt these tips to what works for you. Just stay consistent with making on-time payments, keep those credit card balances low, and don’t close old accounts unless you really have to.

Want to learn more about taking control of your finances and building wealth? Head over to Money Mythos where we break down all kinds of money topics without the boring financial jargon. We’ve got tons of practical advice from real people who’ve been there!