Struggling with a low credit score and don’t know where to start? In this episode of The Get Out of Debt Guy Podcast, Damon Day pulls back the curtain on the credit score improvement tips that actually work—no fluff, no gimmicks, and no shady “credit repair” schemes.
Whether you’re dealing with collections, maxed-out cards, or just trying to rebuild after a financial hit, this episode breaks down exactly how credit scores are calculated—and how to start improving yours today. You’ll hear real stories, like Carlos, who turned a 545 score into a 710 without falling for credit repair traps.
🎯 Inside This Episode About Credit Score Improvement Tips:
- Why paying off collections might not raise your score
- How to master your credit utilization for fast results
- The truth about auto-pay, old credit cards, and hard inquiries
- The simple steps you can take TODAY to start improving your score
- A breakdown of the real credit score formula (and how to work it in your favor)
💡 Plus: Damon shares the emotional side of rebuilding credit—and why your score doesn’t define you.
If you’re tired of the confusion and ready for real answers, this episode is your roadmap to credit clarity.
📍 Need personalized help, more credit score improvement tips, or want to build a custom strategy? Visit DamonDay.com — Damon offers hands-on support to help good people through bad debt situations.
🧭 For more free resources, credit guides, and tools to take back control of your money, check out GetOutOfDebt.org.
📢 Don’t forget to subscribe, leave a review, and share this episode with someone who needs it.
Transcript
[0:00] Hey there, friends. It’s Damon Day here, the new get-out-of-debt guy.
[0:04] Steve, the old get-out-of-debt guy, isn’t with me today, so you’ve got me writing solo for this one. If you’re a returning listener, welcome back. Seriously, I’m glad you’re here. And if it’s your first time tuning in, as Steve would say, don’t forget to subscribe and boop that like button. Doing so gives this episode a little love, and it helps people find this message. And hey, if you’ve got questions, if you’re stuck, or if you just need someone in your corner, head over to getoutofdebt.org. There’s a free show guide waiting for you there with deeper resources on today’s topic.
[0:43] So, let’s talk about something that affects almost every part of your financial life, but no one really teaches you how it works. I’m talking about your credit score. We treat it like a report card for adulthood. Want to rent an apartment? They check it. Want to get a decent interest rate on your car? Yep, they check it. Apply for a job in some cases? Uh-huh. They’re checking that too sometimes. But here’s the twist. Most people are trying to fix their credit score the wrong way. They’re paying off the wrong debts at the wrong time. They’re chasing points like it’s a video game, or worse, they’re falling for shady credit repair traps that don’t solve the actual problem. And here’s the surprising part. A good credit score doesn’t mean you’re good with money. It just means you’ve been good with debt. So today we’re going to unpack what really improves your credit score and what’s really just noise out there.
[1:41] So let me ask you something. Why does your credit score feel so emotional? Maybe it’s because it’s not just a number. It really feels more like it’s a verdict. I must be bad with money. No one’s ever going to approve me. I screwed up, and now I’m stuck. Yeah, I’ve heard all of those things from clients, from friends, from folks who are just trying to turn their lives around. But let me tell you, you are not your credit score. You are a whole human being who’s had to navigate life. Maybe there was a job loss, a medical bill, a divorce, Or hey, maybe a global pandemic? Huh? You know, life happens. The good news, you can bounce back and it doesn’t have to take years.
[2:33] So, let me introduce you to Carlos. Not his real name, by the way. Carlos was 28, had a 545 credit score. He’d maxed out a few cards and was trying to keep his small business afloat during COVID. He got behind on payments, and now every time he checked Credit Karma, it was like a punch to the gut. He told me that he feels like he’s always five steps behind. Sound familiar? Well, we built him a custom plan. We didn’t fall for the flashy credit repair ads. We used actual credit scoring logic. And today, Carlos is rocking a 700 and got approved for a lower interest rate auto loan. He told me that he finally feels like he can breathe again.
[3:16] So, let me break this down for you with some myth-busting truth bombs. That’s a mouthful from Steve if I ever heard one. Myth-busting truth bombs. Truth number one, paying off collections doesn’t always help your score. Yeah, once a collection hits your credit report, the damage is already done. Paying it off might stop the calls, but it won’t magically boost your score unless it’s removed from your report. Some lenders report it as paid, others don’t. Truth number two.
[3:52] Your credit utilization matters a lot. This one’s big. If your credit cards are close to maxed out, even if you’re making the minimum payments on time, your score is getting hammered. You need to aim to keep your outstanding credit card balances below 30% of your limit. Below 10% is even better if you can do it. Truth number three. On-time payments are king. Well, thank you for that one, Captain Obvious. Seriously though, your payment history makes up about 35% of your score. That means every on-time payment is like laying a brick in your credit score comeback. It’s critical that you have all of your minimum credit card loan payments on auto pay. You can always pay more than the minimum, but at least the minimums need to be paid on time and setting them for auto pay every month is the best way to do that. Truth number four, old credit is good credit.
[4:58] Don’t close your oldest credit cards, even if you don’t use them. I see this and hear about it all the time. Your old accounts add age to the file, and that helps your score. It adds good positive history, assuming you have good positive history with those cards. Truth number five, stop applying for every credit card you see. Each hard inquiry can ding your score a few points. If you get too many, future lenders can get skittish. So be selective.
[5:32] All right. So you want to get nerdy? Here’s the credit score formula. 35% is your payment history.
[5:42] 30% of your FICO score is made up of the credit utilization. 15% is the length of your credit history. Talking about those old debts again, right? Those old accounts, keep them active. 10% is your credit mix, the type of cards you have, mortgage, credit cards, car loans, things like that. And then 10% is new credit. You know, how many hard inquiries do you have? How many new accounts have you opened recently? You have too many new accounts in a short period of time. It also makes the creditors a little bit skittish. What are you trying to get all this extra credit for, right? In school, extra credit was good. On the credit report, maybe not so much. It’s like baking a cake. You don’t need the fancy frosting. You just have to get the ingredients right. Okay. So.
[6:31] What is this really all about with this fictitious FICO score-y model thing, right? It’s just kind of out there. Everybody knows about it. Nobody really knows what it is or how it works. So here it is.
Do You Have a Question You'd Like Help With? Contact Debt Coach Damon Day. Click here to reach Damon.
[6:44] Improving your credit score is not about impressing banks. It’s about getting your life back. Being able to rent where you want. Get a better rate on a new car. Stop feeling like the system is against you. Remember Carlos? Carlos. His biggest win wasn’t the number. It was the night he told me that for the first time in years, he wasn’t afraid to check his mail.
[7:09] That’s the real win. That’s what I want for you.
[7:13] So, some quick wins you can do today. Number one, set all of your minimum payments to AutoPay. If they’re not already on AutoPay, do it now. Do it today. Number two call your credit card company ask for a credit limit increase now don’t spend it if they give it to you that will help lower your credit card utilization which remember was 30 of that fico score that’s why it’s so important to get those utilization rates down and that’s the utilization rate is the amount of outstanding you debt amount of outstanding debt you have compared to your credit available. So if your limit on your card is raised, that will lower your utilization rate as will paying down the debt. But I’m sure we can all agree that if your credit card company agrees to add $5,000 in additional credit to your card, that’s easier and faster than paying off $5,000, which if you did both would be even better.
[8:20] Okay, number three, pull your credit report for free at annualcreditreport.com. Check it for errors. Dispute them if you find them. Number four, pick one small account balance and try to pay it off this month. Right? Baby steps. Number five, stop ignoring it. Your score won’t get better by accident. You need to take positive actions.
[8:49] Okay, so, free help and final thoughts. Don’t go it alone. If you’re feeling overwhelmed, confused, or just want someone to walk you through the options, go to getoutofdebt.org. You’ll find guides, resources, and if you need a coach to help you create a plan, check out damonday.com. That’s me. I’ve got your back. Feel free to drop a comment below if you’ve ever struggled with this. We can talk about it. And before you go, again, boop that like button, subscribe, and check out getoutofdebt.org for free resources. Remember, your credit score doesn’t define you, but improving it, that’s a powerful way to take back control. So take a breath. You’re not stuck. You’re just getting started. Until next time, peace.
[9:41] Got a money question keeping you up at night? Well, don’t just Google it. Get real answers from real people who actually know what they’re talking about. Head to getoutofdebt.org slash podcast to ask your question and you might hear it on an upcoming episode. But hey, if you’d rather keep it private, Damon Day has your back. Visit d-a-m-o-n-d-a-y dot com because getting out of debt is easier with the right help. That’s getoutofdebt.org slash podcast, where smart money questions lead to smarter money moves.
