Credit Score Hacked: 3 Rules to Automatic, Low-Stress Credit
Credit Scores Feel Rigged, Right? Good.
Credit scores definitely feel like some mystical number from an unfair test. You’re telling me I need to go into debt just to show that I’m good with money? Doesn't make much sense.
In reality, you need a high credit score to do a lot of things financially—whether it’s that sweet apartment or a low car payment. It feels rigged, like something only Wall Street pros understand. Well, that is not the case.
The good news? It is super predictable and simple. The FICO score is about being boring and consistent. Forget the complicated jargon. You only need to master three simple habits, and the best part is: you can automate most of them!
Rule #1: The ‘Pay Your Bills On Time’ Mandate (35% of Your Score)
This is the single biggest factor, accounting for 35% of your entire score. The easy thing to do with this is to keep EVERYTHING on auto-pay. Having one late payment can impact your score for years to come. That’s why we make it automatic: Link your credit card to your bank account and set it to automatically pay the full balance every single month. Also set up auto-pay for your phone bill, streaming services, and rent (if your landlord offers it). All of these on-time payments apply to your credit score. So, make it easy and don’t miss a payment. Make it automatic.
Rule #2: The ‘Keep It Empty’ Challenge (30% of Your Score)
This makes up 30% of your score and is all about your utilization rate. This is the percentage of debt you have outstanding versus how much you are allowed to borrow. You want to keep this percentage under 10% at all times. Credit companies want to see that you can use credit, but that you don’t need to use it. If your limit is $1,000, don’t let the balance get over $100 before paying it off. Treat your credit card like a debit card. Use it only for small, necessary expenses like gas or that streaming service. Pay the card off completely before the statement date, not just the due date, to ensure that low balance is reported to the credit bureaus. Keeping on top of this will keep your utilization rate low and always keep your credit score high.
Rule #3: The ‘Time Traveler’ Secret (15% of Your Score)
The length of your credit history and the average age of all your accounts makes up 15% of the total score. The score loves history! The older your average account age is, the better. Start building credit now and never close your old accounts. Your first, tiny credit card will be your most valuable account in 10 years. Open a safe, entry-level credit card or a secured card now. Use it once a month for a small item, then pay it off. Never close it. This is the ultimate “set it and forget it” wealth-building move. I personally still have my old credit cards from back in college over 10 years ago, and my score is doing well. Make this the easy part and hold onto that history.
What The Lazy Investor Avoids (Red Flags)
Some things you absolutely must avoid on your credit journey:
Applying for Too Much Credit: Applying for five credit cards in six months is silly. Every application creates a hard inquiry which impacts your score. The less you look desperate for credit, the better.
Co-Signing a Loan: Do not co-sign a loan for a friend. They are already unable to get the financing on their own. If they default or stop paying, you will be the one on the hook. Congratulations, you’ve inherited their problems and increased your own risk.
Remember that this is all about consistency. A 750 credit score is not built in a day. It’s built by three easy, automatic habits done over a few years. Keep going with it, and you will be much better off when the time comes to get a new-to-you car or a house.
Automate Rule #1 Before You Log Off
Financial success is boring, but boring is good. Be the automatic investor and the consistent player. Check your credit report right now using any free service like Credit Karma or your banking app. Automate Rule #1 before you log off. And before you go, check out the other posts on saf-finance.com.
