I Knew Nothing About Credit
When I turned 18, I got my first Capital One credit card. I was excited to finally have access to money that didn’t require a paycheck. The problem? I had no clue how credit actually worked. I thought paying the minimum was fine. I thought interest was just a few bucks here and there. I had no idea that carrying a balance meant paying 20% or more on everything I bought. I didn't realize that interest compounds monthly when you don’t pay your statement in full.
So I made minimum payments, didn’t think twice, and eventually thought I had "paid it off" when I stopped using the card and switched to cash. But the balance was still there, interest was still racking up, and I completely forgot about it. There's a little more to this story I'll share another time.
The Slap in the Face: My First Car Loan
Fast forward a few years, I went to buy my first car—a used Dodge Neon. Not the fancy trim, not even a mid-level package. Just the base model. And yet, I was stuck paying about $600/month, if I recall correctly. Why? Because of my bad credit from those credit cards I opened when 18 and didn't actually pay off and keep current. That was the first time credit really smacked me in the face.
I couldn’t believe how expensive it was to finance a used car. I was paying more in interest than the car was worth. But that’s when I had the aha moment: I needed to learn what was actually on my credit report and how to fix it.
Getting My Hands Dirty with the Credit Bureaus
I pulled my credit report from all three bureaus. It was like looking at a messy breakup—a bunch of missed payments, closed accounts, and collections I barely remembered. So I started calling. One by one, I chipped away at the debts, asked for settlements, and requested that accounts be marked as "paid" or even removed when possible.
I thought that would be enough. But it wasn’t.
The Medical Bill Spiral
In my mid 20s, medical bills hit me hard. Collections started calling again. My score tanked. I felt like I was back at square one, even though I wasn’t living recklessly. That was the moment I realized: managing credit wasn’t about being perfect, it was about being proactive.
If I wanted to play the credit card points game—which I do now, with premium cards like the Chase Sapphire Reserve and various Amex Cards —I needed a clean slate.
How I Finally Took Control
I started negotiating medical bills. I made calls, wrote letters, asked for pay-for-delete arrangements. And when I hit a wall with some of the stubborn entries, I got help.
A high school friend of mine, Dr. Derricka Harwell, had started a company called Beautify Credit. Her team helps people clean up and rebuild their credit while educating them along the way. That was the final boost I needed to go from "doing okay" to having excellent credit.
Time, consistency, and informed action are what did it. I stayed on top of my bills, avoided unnecessary debt, and kept my utilization low. Even when a car loan company made an error that temporarily dropped my score by 30+ points, I was still above 800 and got approved for my next vehicle with the best rate—not the "top" bad one.
What Makes Up Your Credit Score
Want to improve your credit? First, understand what goes into it:
- Payment History (35%): Pay on time, every time.
- Credit Utilization (30%): Keep your usage under 30% of your limits (under 10% if possible).
- Credit History Length (15%): Older accounts boost your score.
- Credit Mix (10%): A mix of credit cards, loans, etc., is a plus.
- New Credit Inquiries (10%): Too many applications can ding you.
FICO vs. VantageScore
Most lenders use FICO scores, but free credit apps often show you your VantageScore. They can differ by dozens of points. Don’t panic if what you see on Credit Karma doesn’t match what your lender pulls. I personally use myFICO to track all three FICO scores monthly and monitor my reports.
My Real Talk Credit Tips
- Don’t just pay the minimum. Interest compounds fast and builds quickly if left unchecked.
- Set alerts for due dates and enable auto-pay for at least the minimum to avoid late payments.
- Use credit cards like debit cards: only spend what you can afford to pay off in full.
- Don’t close your oldest cards. When you close a credit card, you lose the available credit limit from your total utilization calculation. This can spike your utilization percentage and lower your score.
- Both individual card utilization and overall utilization matter. Keeping your usage under 10% (ideally) helps your score stay strong.
- If a card has no annual fee—or has one low enough that you can afford to keep it open—don’t cancel it. Make a small purchase every 6-9 months to keep it active.
- Learn your card’s closing date. This is when your balance gets reported to the credit bureaus. If you make a big purchase, pay it down before the closing date to keep your utilization low when it reports. You can still pay the statement balance before the due date to avoid interest.
- Check your reports every year from all three bureaus (Experian, Equifax, TransUnion).
- Don’t be afraid to ask for help—whether from a friend, a reputable service, or someone like Beautify Credit.
Need Help? Beautify Credit Has Your Back
If your credit feels like a mess and you don’t know where to start, Dr. Derricka Harwell and her team at Beautify Credit can help. They specialize in credit education, repair, and empowerment.
This isn’t just about your score. It’s about your future.
Final Thought
Credit doesn’t define your worth. But it does impact your options. Learn it. Own it. Fix it. Then leverage it like the tool it is—not the trap it can be.