I Went From Late Payments to an 810 Credit Score. Here's How

An 810 credit score is considered an excellent credit score. I've earned this score over time, but my credit wasn't always so good. Years ago, when I was in school, I was juggling too many credit cards and I even had some missed payments.

At some point, though, I wanted to turn things around. I explored my options for improving my score and I made a plan to make it happen—and it paid off. Anyone can do what I did. 

Whether you’re struggling and need debt relief or you’re simply hoping to boost your score, it can be helpful to look at some tactics that could lead to big score improvements over time.

Here's how I went from paying late to a credit score that's only 40 points short of perfect. 

1. I Simplified My Borrowing Habits

One of the big reasons why I was paying my credit cards late is that I had too many cards. When I was in school, I juggled several cards, including store cards and general-purpose cards. Sometimes, one of the cards fell through the cracks, and I simply forgot to pay it because there were so many to keep track of. 

Since I didn't want to do more damage to my score, I opted not to cancel any of my credit cards. Instead, I committed to stop using several of them. I decided I would only use two cards total, and I'd pay off the rest and put them away in a drawer where I would only touch them once a year.

Keeping the cards open allowed me to keep the credit lines and the account history on my record, so I didn't hurt my credit utilization ratio or lower the average age of my accounts— important factors in the credit scoring formula. Using the cards once a year and immediately paying the balance also ensured the card companies didn't close the cards for inactivity.

Since I wasn't using them regularly, I didn't have to: 

• Remember to pay multiple different credit card balances every month 

• Keep track of spending limits, which is harder when the amounts are spread across multiple cards 

Instead, I could:

• Use my two cards

• Track spending easily 

• Earn generous rewards

• Forget about having to remember eight or nine monthly payments

2. I Consolidated Debt and Got Serious About Repayment

Having balances across multiple cards led to high monthly payments and a confusing repayment process. So I also decided I would consolidate my debt to make it easier to become debt-free.

Consolidating meant I combined all my credit card balances into a single debt loan. I chose a balance transfer, which allowed me to set my rate at 0% after paying a small 3% transfer fee to move debt from my other cards over. 

Using a balance transfer doesn't always work well for many people as a method of debt relief because you have a short time to pay back the money before the 0% rate ends. It worked for me, though, because I knew that if I repaid an affordable amount each month, I could become debt-free before the promotional rate ended. Also key to my success was:

• Having high motivation

• Doing the math to work out how much I’d have to pay

If you want to consolidate debt and need more time than a balance transfer offers, a personal loan is another option. No matter which approach you choose, moving the balance around doesn't deal with the debt itself. 

A loan or consolidation just makes it easier for you to deal with the debt. Moving your balance could simplify the repayment process and potentially make it more affordable if the card or loan you use to consolidate has a lower rate. But you still have to budget for the payments.

3. I Set Up Automatic Payments to Avoid Mistakes

Earning an 810 credit score means you need to make payments on time. That's because late payments heavily ding your credit. In fact, one late payment could send a good score down more than 100 points.

To make sure I never accidentally paid late again, I set up automatic payments on my credit cards. You can set your cards up to autopay the minimum or the full balance. Paying the full balance is better to avoid interest charges. However, if you aren't sure you'll always have enough in your bank account, automatically paying the minimum at least allows you to avoid accidental late payments. 

4. I Kept Borrowing in an Intentional Way

Finally, the last thing I did was to keep borrowing—but I did it intentionally and with some planning. To build your credit score, you need to use credit,  because you have to develop a positive payment history.

I was able to charge a small amount on my two cards each month. Then, I paid the balances and developed a good payment record. Eventually, this allowed me to get a mortgage. That mortgage helped my credit score even more by putting different kinds of credit on my credit report. 

If you want to improve your score, these steps can work for you, too. 

• Explore ways to pay back what you owe. 

• Limit yourself to using only a few cards regularly.

• Charge or borrow only what you can pay back.

• Set up autopay so you don't forget a payment.

It may take some time, depending on your starting point. But you can definitely earn a good or even great credit score with a little effort even if your current status is making a lot of late payments.