How 3 Millennials Drastically Improved Their Credit Scores in Under a Year

Millennials get a bad rap for their credit scores. A recent study by Experian shows that they have an average score of 625, below the national average of 667 and the lowest of any generation.

But many millennials are defying stereotypes, taking charge of their scores and building a solid credit history by educating themselves and establishing good credit behaviors. NerdWallet talked to three millennials who made drastic improvements to their credit scores in just months. Here’s how they did it.

Ross Christensen

Credit score: 530 to 660 in four months

Ross Christensen almost gave up on improving his credit. The 28-year-old home security service professional from Anchorage, Alaska, took the first hit to his credit when he went through a divorce. His troubles were later compounded by some collection accounts and an IRS debt that arose from an address mix-up.

“I was getting so sick and tired of the credit game,” he says. “I’ve always had good jobs and good salaries, but … my credit was holding me back in life.”

At first, Christensen did nothing. But with ambitions to own a home and start a business someday, “I realized I couldn’t accomplish my goals if I didn’t play the game,” he says.

Christensen believes that what held him back was an understanding of how credit works. He signed up for a few services that boasted free credit score monitoring, only to find out that they weren’t free after all. In June 2015, he signed up at Credit Karma, an online credit information company, where he could learn about and monitor his credit.

The first thing Christensen did was pay off most of his collection accounts and the IRS debt. He then applied for a secured credit card. “I was meticulous in making sure that I paid off my credit card each and every week without fail,” he says. “I didn’t risk paying it off monthly — no, I wanted to pay it off weekly. I made it a thing of habit.”

After Christensen dealt with the major negative marks on his credit report and developed some good habits, his credit score responded quickly, breaking the 600 mark in a matter of weeks. In October 2015, it reached 660.

“For eight years, I paid someone else’s mortgage [in the form of renting] because of my bad credit,” Christensen says. After just a few months of education and dedication, he applied and was approved for a mortgage of his own.

“The feeling was insane,” he says. “For years I have felt held back by my credit, and all of a sudden the ball was in my court.”

How he’s continuing to build his credit: Christensen took the first steps to rebuilding his credit by understanding how his actions affect his credit. Now, it’s no different. He checks his credit card statement and credit score regularly. He’s also more conscious of what constitutes a credit check.

“I make sure I’m aware every time someone runs my credit,” he says. “I double and triple check to make sure I understand the credit check they are doing … and I make sure they tell me exactly what’s happening.” He plans to continue using his secured credit card to establish a good payment history while keeping his spending in control, and will likely replace it with an unsecured credit card in the future.