How improving my credit changed my life for the better

Photography by Getty Images; Illustration by Bankrate

After years of credit challenges, I recently signed an apartment lease — with only a $350 deposit and no co-signer. I’m proud of this achievement, which was only possible for two reasons: my 702 credit score, and the work I put in to achieve it.

That’s a big change from when I last signed a lease in January 2017. At the time, I was juggling a series of life changes, including the end of a nearly 20-year relationship and the launch of a full-time freelance writing career. Because I didn’t have a rental history and my credit score was below 600, I was forced to have my father co-sign the lease, and I had to pay a $1,200 deposit for the apartment.

By the summer of 2019, my finances were in good shape. But in the spring of 2024, a series of setbacks put me back in financial trouble, erasing my hard work and causing my credit score to plummet back down to 579.

I’m not the only one who’s been in this position. Almost 2 in 5 (37 percent) of credit card holders have either maxed out a card or come close since the Federal Reserve began raising rates in March 2022, according to Bankrate’s Credit Utilization Survey. If you’re facing the despair of growing credit card debt, the good news is you can fix it. Here’s how I dug myself out — yet again — and put myself in a better position when it came time to get my new apartment.

Getting back on track

To start rebuilding my credit again, the first thing I did was go to AnnualCreditReport.com to get my Equifax, Experian and TransUnion reports, which you can access for free every week. I pored over all three reports, disputed mistakes and incorrect information and then used this information to determine how much I owed on all my cards.

I also leaned heavily on lessons I learned working with Money Management International in the past, which allowed me to create a plan to tackle my debt on my own this time:

• I created a realistic budget and took out a personal loan to consolidate my bills. I then put at least $500 a month toward my loan to get it paid off faster.

• I used the secured Self Visa® Credit Card — which includes the Self Credit Builder Account — to cover expenses. I paid this card off every month, which helped raise my credit score.

• I also paid down my Capital One Platinum Credit Card with my personal loan so I could use it in case of emergencies.

• In October 2024, I inherited some money that allowed me to repay my loan (which would have been paid off in eight months otherwise). I also created separate savings accounts for emergencies and travel.

These actions brought my score back up to 702, allowing me to reap benefits including conditional approval for the American Express® Gold Card and the Capital One Venture Rewards Credit Card, as well as increased credit limits on my existing cards. I paid off my car, with its 20+ percent interest rate, using my inheritance money. I’m currently eligible for a 6.59 percent interest rate at my credit union if I decide to buy a new set of wheels, thanks to my higher credit score.

The bottom line

I won’t lie — my ongoing credit journey has not been easy, and the lessons I learned took a while to take hold. Life happens, and sometimes we find ourselves caught up in debt. There’s no shame in that.

What matters is that resources are available to help you dig out of debt. It may seem daunting in the beginning, but there is a light at the end of the tunnel — and that light is worth putting in the work.

It’s a great relief to no longer have the stress that comes with carrying debt, and the peace of mind of having savings to cover emergencies is priceless. Because of the changes I’ve made, I’m now able to put aside money for the better things in life. I can help my child with college expenses and, in the future, there’s money set aside to buy a home — none of which would have been possible if I hadn’t done the work to raise my credit score.