My Credit Journey - Starting at Rock Bottom

Without a care in the world

When I was growing up, I could care less about credit. I didn't understand credit cards or loans - all I really wanted to do was buy cool clothes and go out a lot. College came, I went for the student loan route, I dropped out of school...and that's when the real-world credit education began.

Six months after I left school, the student loan company started calling. I had plenty of early 20-something drama going on in my life, so I blew it off, never expecting to screw my future self up so badly.

Trying to get ahead

Two years passed with a payment record so full of holes that you could call it swiss cheese. I was a bit older, a bit wiser, and in a stable and steady relationship. It was time to think about the future - we needed to get a car, a house, all that fun stuff.

By that time, I had at least straightened myself out to the point where I was paying all of my bills on time. I didn't really think that student loan issue was going to be all that bothersome - and then I started trying to get a credit card.

Every single credit card application I put through was declined.

I didn't even know there were people with 400 FICOs

I'm web and research savvy enough to start doing some research, going around to various credit forums and information sites. I had been pulling my free yearly report: There were a few collections from the fallout with a prior boyfriend, and also the student loan lates. I was getting the sinking feeling that finding out my actual credit score was something I was not about to look forward to - especially after finding out that a fair amount of people made sure to never be late on bills. The FICO came up - I don't recall the exact number at this point, but it was in the 400s. I was completely and utterly devastated, embarrassed, and angry at myself for not caring when I was younger.

The payout

I started researching my options. The student loan was my only active account on my credit report, and the first thing I learned was how big of an impact revolving credit lines (credit cards and store cards) had on your credit score. I spent six more months making sure that my student loan was paid on time and that I had settled every collection that I owed. Just when I was getting ready to settle for a secured card, I got it. My first, golden credit card approval. It only had a $300 limit, but when it finally came through it was like $300,000 for me. The next challenge was continuing to build positive tradelines - but that's a post for another day.

__________________

This guest post was contributed by Tiffany Garden. Tiffany is a freelance writer who has a love / hate relationship with credit, and isn't afraid to say so. Check out the second installment of her credit journey here. 

If you are interested in guest blogging for SpendOnLife.com, visit our Write For Us page for details.