5 Milestones That Will Trash, Test and Top Up Your Credit Score

1. Getting your first credit card

Getting your first piece of plastic is a lot of responsibility, whether it happens in your teens or later in life. You might not be too focused on building your credit score when you’re young, but an early start will help you hit the rest of the milestones on this list.

The length of your credit history accounts for 15% of your score, and it’s not something you can really fix down the line. Keep in mind, it will take some time before you see results; you need to have an account open for at least six months before you get your first score.

Unfortunately, we don’t all make good decisions when we’re young, and an early start won’t matter much if you don’t use your card responsibly. Your history of punctual payments is the biggest influence on your score, making up 35% of the final number.

Luckily, there are a few ways to take back control if you start spiraling into debt.

Anyone struggling with minimum payments should consider credit card refinancing or credit card consolidation. If you can switch to a loan or credit card with a lower interest rate, you can save money and pay down your balance quicker.

A lower balance will also help your credit score by reducing your credit utilization ratio — that is, how much credit you’re using compared to how much you have available. The credit bureaus frown on ratios above 30%, but if you can pay down your debt and get it to 10% or lower, your score should tick up.

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2. Graduating from college (or not)

The period in your life immediately after leaving college can be critical, both professionally and personally.

Whether you graduated with honors or fell several credits shy of receiving your diploma, your academic record won’t impact your credit score — that’s the good news.

Your student loans, on the other hand, will influence your score.

That can be a good thing. For some people, it may be one of their first opportunities to build credit.

While other financial obligations — like rent or car insurance — aren’t typically reported to the credit bureaus, student loan payments are. And this new type of credit will add to your credit mix, which accounts for about 10% of your score.

Just make sure you’re making your payments on time and you’re not suffering more than you have to.

3. Getting married (or divorced)

What’s more exciting than your wedding night? The eager bride and groom can finally get down to business — and talk about their credit history.

Being single is easy. You only have to keep tabs on your own credit score. But when you tie the knot and open joint accounts, they’ll show up on both of your credit reports.

Now you’re not the only person responsible for your debt, and how well you manage it will impact both of your credit scores.

The situation can get pretty delicate if the marriage ends. When you go through a divorce, you’re still responsible for shared credit cards and loans you opened when you were married, at least until they’re closed or you have your name legally removed from the accounts.

Closing shared credit cards could very well impact your score, so make sure to keep that in mind.

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4. Buying your first home

Sure, it’s the American dream — but to make that dream come true, you’ll be taking out the largest loan of your life.

You’ll need a solid credit score if you want to qualify and a great credit score if you want to take advantage of the lowest interest rates available to you.

You’re likely to get a small ding on your score when you apply for a mortgage, as the lender will make a “hard” inquiry that will show up on your credit report. But you’ll erase that blip soon enough, simply by making your payments on time and adding a home loan to your credit mix.

The real concern is missing payments; your big monthly commitment can suddenly become a liability if you lose your job or face some unexpected medical bills.

If you’re having trouble, don’t wait for it to crash your score. Look into forbearance to put your bills on pause — or, better yet, compare refinance options for your mortgage online through a company like Homewise to take advantage of today’s record-low rates. You could save hundreds of dollars a month.

5. Retiring

Though you’re unlikely to need a new student loan in your 60s and 70s, your credit score will still be relevant in retirement. Many people treat themselves in their golden years, finally getting that vintage car or cottage by the lake.

A solid credit score will make those loans more affordable — which is more important than ever now that you’ve shifted from collecting paychecks to using your retirement savings and pension.

One easy way to keep your score high as you age? Keep your old accounts active to preserve your credit history. If you have a longtime account in good standing without annual fees, don’t be hasty to close it when you pay off your balance.

You might also want to sign up for a free credit monitoring service, which will inform you if your score ever drops due to a missed payment, fraud or an error on your credit report.