Credit Score Struggling? Here’s How to Flip the Script
Your credit score can shape major parts of your life such as whether or not you qualify for a loan, what kind of apartment you can rent, and even how much you’ll pay for car insurance. If you’re working with bad credit, no credit, or you’re sitting in the “not-great” credit range, it can feel overwhelming but you’re not stuck. Here’s what’s going on and how to fix it.
What’s Dragging Your Credit Down? Let’s Break It Down
Your credit score is like a financial report card that needs to be checked frequently. And just like grades, it can drop when certain behaviors stack up. Common reasons for poor credit include:
Some of these might seem small in the moment, but over time they add up — and lenders take notice.
No Credit or Bad Credit? Here’s Why It Matters
Having bad credit and having no credit are two different situations — but both can make borrowing tough. Here’s how they stack up:
No credit is like showing up for a job interview with no resume. Bad credit is showing up with one full of red flags. Negative information on your report could sink your job prospects. If you are suddenly unable to pay your debt obligations, your credit score likely will suffer. Neither is ideal, but it’s easier to build something new than to undo past damage.
Stuck in Credit Limbo? You’re in Good Company
You don’t need to have a “bad” score to feel limited. If you’re not in the excellent range, you’re probably paying more than you should — or getting passed over for top-tier financial products. Instead of focusing on a specific number like 700, think in terms of credit bands:
- Excellent (700+): You’re golden.
- Good (650-699): Solid shape, but still room for better rates.
- Fair (600-649): You can qualify, but rates may be higher.
- Poor (below 600): You’ll likely need to rebuild before applying for most credit.
Progress might feel slow at first, but these habits build over time — and your score will reflect it.
Credit Myths That Aren’t Wrecking Your Score
Some things might seem like they’d impact your credit… but don’t. Here are a few myths to stop worrying about:
- Checking your own credit is a soft inquiry — it has zero impact.
- Income, job title, or savings aren’t part of your credit score.
- Paying rent or utilities won’t help unless you use a service that reports them.
- Closing a credit card only hurts your score if it raises your credit utilization or shortens your history.
Focus on the factors that do matter — not the ones that just sound like they should.
Brand-New to Credit? Here’s How to Build It Right
If you’ve never had credit before, your first goal is to prove you can use it responsibly. That means showing lenders a pattern of borrowing and repaying. Here are a few easy ways to get started:
- Apply for a secured credit card: You put down a deposit, and the issuer gives you a small limit.
- Become an authorized user: Someone adds you to their card, and their good payment history can boost your score.
- Try a credit-builder loan: These small loans are made specifically for credit newbies.
- Use a starter or student credit card: Just make sure to pay it off in full each month.
Avoid using more than 30% of your available limit and never miss a payment. Within 6 months, you’ll likely have a score — and after a year, a decent one.
Fast-Track Fixes Based on Your Credit Situation
Here’s a quick cheat sheet depending on where your credit currently stands:
Start by looking at your credit report. This will show you all of the information that has been reported to the credit bureaus. There are several ways that you can get a free copy of your credit report.
- The three credit bureaus – Equifax, Experian, and Transunion – can all give you a copy of your credit report.
- AnnualCreditReport.com is a website that allows you to access a free copy of your credit report once a year. This website also contains a lot of useful information about credit monitoring.
However, there are other companies that generate credit scores. VantageScore is one, and the Fair Isaac Corporation, a data analytics company, offers up the FICO Score. That’s based on the credit reports from the credit bureaus, and the FICO Score is often what many lenders will look at when deciding what your interest rate should be for personal loans, credit cards, and certainly your mortgage.
Don’t just assume that everything on your credit report is accurate either. In a Consumer Report study conducted in 2021, approximately 2,000 of the nearly 6,000 people that participated found at least one error on their credit report. Look for errors on your own report regularly. If you find one, contact the bureau that is reporting it and have them correct it.
Real Talk: Getting (and Staying) on Track
Improving your credit isn’t about chasing a perfect score. It’s about unlocking better options — lower interest rates, easier approvals, and more peace of mind.
Don’t get discouraged by where you are now. Whether you’ve made mistakes or you’re starting from zero, the path forward is the same: pay on time, keep balances low, and give it time.
Every smart move you make counts. Keep going — your credit comeback is already in motion.
Your Credit Questions Solved
Debt consolidation can make managing multiple debts easier by rolling them into one monthly payment. You might get a lower interest rate and reduce your risk of missing payments. But not all consolidation loans save money—some come with higher rates, fees, or “teaser” rates that rise later. And if you keep overspending, you may just pile on more debt. Always compare lenders and terms before applying. The best consolidation loans may make paying your debts more manageable.
Errors are common — about 1 in 5 people have one on their report. If you spot a mistake, report it to one of the three major credit bureaus (Experian, Equifax, or TransUnion). Include the account details and documentation and ask for corrections in writing. Once resolved, your score could improve.
No. Checking your own credit is a soft inquiry and has zero impact. However, applying for loans or credit cards triggers hard inquiries, which can slightly lower your score. Too many applications in a short time can hurt more.
Opening too many accounts quickly can make you look financially unstable. Each application creates a hard inquiry. Closing old or unused credit cards can also hurt by shrinking your available credit and raising your credit utilization ratio. Unless there’s a strong reason to close a card, it’s usually better to keep it open.
It takes about six months of activity to generate a FICO score if you’re starting with no credit. To build strong credit, plan for a year or more consistent on-time payments and low credit usage.
It depends on the issue.
High credit card balances: Paying them down can boost your score within a few months.
Late payments: A 30-day late mark can affect your score for up to a year.
More severe delinquencies: 90-day late payments or collections can remain on your report for up to seven years.
Bad credit is generally worse because it reflects a history of missed payments or defaults. No credit simply means there’s not enough data to generate a score. While both can limit borrowing options, lenders often see no credit as less risky than bad credit.
Yes. When you close a card, you reduce your available credit, which can increase your credit utilization ratio. That can lower your score, especially if your balances stay the same. If possible, keep older accounts open to maintain your credit history and total limit.
Start with the basics:
Make on-time payments every month
Pay down your credit card balances
Don’t apply for new credit unless necessary
Check your credit report for errors and dispute any inaccuracies
Whether you’re starting from scratch or bouncing back from past credit slip-ups, steady progress is what counts. Build smart habits — like paying bills on time, keeping your credit usage low, and reviewing your credit report — and you’ll be on the path to better financial opportunities. Need a boost? AmOne can help you explore personal loan options that match your credit journey and goals. Find the best personal loan lenders and compare rates on small personal loans. Start your credit comeback with confidence — and let AmOne guide the way.
