
Throughout my life I’ve seen credit scores make or break dreams. They can determine whether or not you can afford your college tuition at your dream school, pay for that perfect house in the perfect neighborhood you want to live in, start a business that you know will change the world, or buy the ring you want to give to your dream spouse.
There are 9 ways that may help increase your credit score and odds to live the life you desire. You don’t need to know the exact formula of a credit score, but by effectively managing your life habits and the debt you take on, you will have the right tools to be successful. This guide is not a substitute for professional financial advice in times of crisis, but it could assist you make your next life purchase. Let’s start discussing.
Creative Ways to Improve Your Credit Score
Now, in the below part I would deeply discuss the top nine ways to assist you in increasing your overall credit score.
1. Analyze The Terrain (The Credit System)
Always know the terrain before you start anything. In this case, we’re talking about the credit system. A credit reporting system is made up of three main players: consumers, credit bureaus, and financial companies.
The three main Credit Bureaus are TransUnion, Equifax, and Experian. Use the chart below to see how the game works. Half of the battle in creativity is knowing the rules. I like this quote from Dalai Lama XIV “Know the rules well, so you can break them effectively.” By “break,” he means bending the rules to your advantage (not breaking the law, but working strategically within legal boundaries).
2. The Credit Pie
A credit score position is based on five main components called the FICO Credit Scores. They are:
- 30% Available credit: Credit limit minus the amount you owe for each account.
- 10% Number of inquiries: records of inquiries logged when you apply for credit.
- 10% Type of credit: student loans, installment loans, revolving accounts, mortgages, etc.
- 35% Payment history: the record of your on-time and late payments.
- 15% Length of history: the time elapsed since each account was opened.

3. Clear The Clutter
Statistics show over 44 percent of consumer’s credit reports have errors. These errors can significantly damage credit scores. In order to be creative, you need to understand the errors and the risk of them being there unchecked, and then removing them through the proper means. Take advantage of the annual free credit reports all the three major creditors provide.
Take advantage of free annual credit reports from Experian, Equifax, and TransUnion, as mandated by the government. You don’t need to use all three at one time so you can spread them out throughout the year. This should be the only “free” source that you use. If you want to get additional reports, you need to pay a nominal fee through each credit bureau for each report.
4. Limit Your Debt
Certain types of debt are can be beneficial. Some examples would be buying a house or college tuition.
This kind of debt should be seen as an investment in your life. However, the amount of debt you take on, along with the interest rates, should guide your decisions. If you can’t reasonably pay off the debt, avoid it altogether. If you don’t think you will be able to pay off the debt in a reasonable amount of time, then don’t take it on in the first place.
Pay off debts quickly by exceeding minimum payments to reduce interest charges. Credit cards have a higher interest rate than other types of loans so make sure to pay off the balance every month and don’t spend beyond your means. Start looking at cutting out unnecessary expenditures and watch your debt go down and your credit score slowly climb to where it should be.
5. Card Discipline
Do whatever it takes to decrease the probability of finding yourself in major problems, like debt. When you get a credit card, it isn’t a blank check to spend, spend, spend. You are playing with your own money and not the credit card company’s. Use your credit card wisely. A high credit limit doesn’t mean you should max it out.
Like I said previously, your revolving debt to credit limit ratio affects your credit score. Keep that in mind when you make a purchase. When you buy something, it should be seen as an investment rather than an expense. If the value of your investment is smaller than the cost of the purchase, you are paying for an expense rather than something that benefits you.
6. Accountability
Not paying your bills on time is one of the most common reasons credits scores are hitting the floor for so many people. Loans and credit cards should be paid at least the minimum before due dates. You can save a lot on interest by paying more than the minimum. So borrow less.
A simple way to stay on track is to use an accountability partner, your calendar, or an app to remind yourself your bill is due. Rely on your accountability partner and backup with the latter options. Being accountable to another person is one the most ancient ways to be productive and on time. Being accountable to someone else is one of the oldest and most effective productivity methods
7. Put It All On the Card
Once you’ve established a disciplined method for holding yourself accountable, and you have cut out unnecessary expenses, you can cut yourself some more slack. When you pay off your credit card in full every month without fail, you are showing the banks and the credit bureaus you are financially responsible
Be patient but not complacent. You demonstrate financial responsibility by paying off the balance each month. You’ll be happier paying off more than you should if you’re in debt than buying a useless item. Act wisely. Make something. And achieve your goals.
8. Save Creatively
Bradley Cooper only learned one new skill in the movie “Limitless.” This skill was creativity. Being creative is what allows us to seize opportunities. Whether that means coming out of a ditch you’ve fallen into or learning how to fly higher and faster. We are now in the Creative Age where creativity is the new currency. Raising your credit score will come from you being creative in ways that only you will know.
Be creative by cutting out meaningless purchases that you make on a day-to-day basis in order to save money. One can save $10–$20 weekly if they forwent snacking on a daily basis. Familiarize yourself with common financial pitfalls and find innovative ways to improve your savings. Treat every paycheck as an opportunity to pay yourself first and build a financial cushion.
9. Lend A Helping Hand
Young people are put in a unique situation with credit scores. They have a hard time getting money lent to them because they usually haven’t raised their credit score. Parents and guardians can help with this. If you look after a young person, one way to increase their credit score is by allowing them to be associated with your credit card. In other words, your young adults can build their credit score by being authorized users on your credit card (sounds scary)…
If you are that young person, ask a trusted family member to help you out. Just make sure not to go crazy with the card, because both of your credit scores will be affected. They keep you accountable rather than be permissive so you can learn how to be a fiscally responsible adult. Think of how that debt could affect that trusted family member and limit it.
Final Words
Creativity is how you raise your credit score, come up with an idea for a new company, or say a witty joke to make a girl smile. Creativity is the key to rising from the ashes.
If you’re making a lot of decisions out of desperation there’s no need to be hard on yourself, just notice it. Then begin to take small steps to make more decisions out of inspiration. This is the difference between moving towards where you want to go and moving away from where you don’t want to be. Small subtle, big difference.