If you’ve ever felt frustrated by a low credit score, you’re not alone. Credit scores can seem like a mysterious number that controls your financial life. Whether you’re denied for loans, slapped with high-interest rates, or missing out on job opportunities, a poor credit score can hold you back in more ways than one.
But what if I told you that a single, often-overlooked trick could help transform your credit score from a disappointing 500 to an impressive 750? Yes, it’s possible—and today, I’m sharing the key strategy that worked wonders for me and can work for you too!
Let’s dive into my credit journey and how I turned my score around using one simple trick that financial experts don’t always advertise.
- My Credit Struggle: The Start of a Tough Journey
Like many people, my credit troubles began with a few poor financial decisions. Missing a couple of credit card payments, maxing out my available credit, and taking out personal loans to cover unexpected expenses pushed my score down to a low 500. To make things worse, I wasn’t aware of how credit utilization and payment history worked, and I didn’t check my credit report regularly.
Living with a 500 credit score was difficult:
- Credit cards had sky-high interest rates, making it impossible to pay down the balance.
- Loan applications were denied left and right.
- Even utility companies required deposits because of my low score.
That’s when I knew I had to take action. But like many others in my situation, I didn’t know where to start. I tried budgeting, made sure to pay my bills on time, and even cut unnecessary expenses—but the improvements to my credit score were minimal. I needed something that could make a bigger impact.
- The Simple Trick: Becoming an Authorized User on Someone Else’s Credit Card
The turning point in my credit journey came when I learned about becoming an authorized user on someone else’s credit card. It sounded too good to be true, but I decided to give it a shot—and it made all the difference.
Here’s how it works:
When you’re added as an authorized user to someone’s credit card account, their good credit habits can be reflected on your credit report. If they have a long-standing account with an excellent payment history, low credit utilization, and a high credit limit, you essentially get to “piggyback” off their positive credit behavior.
I was fortunate enough to have a close family member with a stellar credit score who was willing to help me out. They added me as an authorized user on one of their older credit cards, which had:
- A low credit utilization rate (they only used about 10% of their available credit).
- A long payment history (they never missed a payment in over 10 years).
- A high credit limit ($20,000, which made my small credit limits pale in comparison).
- Why This Trick Works So Well
You might be wondering how this simple trick could create such a dramatic change in my credit score. Let me explain why becoming an authorized user can have such a powerful impact:
- Instant Boost to Payment History: Payment history makes up about 35% of your credit score. When you’re added as an authorized user, the primary cardholder’s excellent payment history is reflected on your credit report. This helped me immediately improve the most significant factor in my credit score.
- Lower Credit Utilization: Credit utilization is another critical factor, accounting for about 30% of your score. I had been using a significant portion of my available credit, but the addition of a card with a $20,000 limit immediately lowered my utilization ratio. Since utilization is calculated across all your revolving accounts, adding the new high-limit card gave me breathing room, which bumped my score.
- Length of Credit History: The age of credit accounts plays a role in about 15% of your score. Since I was added to an older account, my average account age increased, making me look like a more responsible borrower in the eyes of creditors.
- Increased Credit Mix: While credit mix only accounts for 10% of your score, having a healthy mix of revolving credit (credit cards) and installment loans (like car loans or mortgages) can show that you can handle different types of credit. In my case, being added to the account diversified my credit mix.
- The Results: From 500 to 750 in a Matter of Months
After being added as an authorized user, I started to see changes in my credit score almost immediately. Within the first month, my score jumped by over 80 points! As the months went by, I noticed continuous improvements, and within 6 months, my credit score had soared from a dismal 500 to an incredible 750.
Here’s how this transformation positively impacted my life:
- Lower interest rates: My improved score meant I could refinance some of my existing loans at much better interest rates, saving me hundreds of dollars every month.
- More credit card offers: I started receiving offers for credit cards with better rewards programs and lower annual fees.
- Financial confidence: Most importantly, I felt empowered and in control of my financial life again. I was no longer held back by a poor credit score.
- Can This Trick Work for You?
Becoming an authorized user isn’t a guaranteed fix for everyone. While it worked wonders for me, there are a few things to consider:
- Choose the right person: You’ll need someone with a strong credit history who is willing to add you as an authorized user. This person must be financially responsible, as their actions on that account will affect your credit as well.
- Make sure the credit card company reports authorized users: Not all credit card issuers report authorized user information to the credit bureaus. Before going through the process, make sure the account will be reflected on your credit report.
- It’s not a free pass: While becoming an authorized user can provide a quick boost, it’s not a long-term solution if you don’t also take steps to manage your own credit responsibly. Continue making on-time payments, keep your own credit utilization low, and avoid taking on new debt unnecessarily.
- Other Steps to Maintain and Improve Your Credit Score
While becoming an authorized user was the game-changing trick for me, it’s just one piece of the puzzle. Here are some additional steps that helped me maintain my 750 score and continue building credit:
- Monitor your credit regularly: Use free tools like Credit Karma or AnnualCreditReport.com to keep an eye on your credit report. Look out for errors and dispute any inaccuracies immediately.
- Pay all bills on time: Your payment history is crucial, so set up automatic payments or reminders to ensure you never miss a due date.
- Keep your credit utilization low: Aim to use no more than 30% of your available credit across all your credit cards. Ideally, keep it under 10% for the best results.
- Limit hard inquiries: Each hard inquiry (e.g., applying for new credit) can temporarily lower your score, so avoid applying for too many accounts in a short period.
- Final Thoughts: A Simple Trick That Makes a Big Impact
Raising your credit score may feel like an uphill battle, but as my story shows, one simple trick can make a massive difference. Becoming an authorized user allowed me to repair my credit faster than I ever thought possible, and it could work for you, too.
If you’re struggling with a low credit score, don’t lose hope. Take advantage of every tool at your disposal, including the power of becoming an authorized user, and start making the positive changes that will improve your financial life. Remember, improving your credit is a journey, but with the right strategies, you can transform your score—and your financial future.