How 20-Somethings Rebuilt Their Credit After Feeling Hopeless

When 20-somethings embark on their first journeys into the credit-card-holding world, many do it blindly. We might know we need to build credit and that something called a credit score exists, but how many of us are truly aware of the impact that the financial decisions we make might have on the rest of our lives?

If you feel like you’ve already ruined your credit before you had the chance to get it started, don’t fear. There are so many credit rebuilding programs that allow you to take back the reins on your finances. If you need a little inspiration, here are a few stories of how 20-somethings rebuilt their credit after having something go wrong.

The Confused College Student

I went my entire college career at Penn State without a credit card and never thought twice about it. After graduating, it took about a year to land a job that really stuck, and like many people, I lived with my parents. So, again, with very few expenses, a credit card still didn’t feel urgent. I was thinking, “No credit is better than bad credit.” Wrong. What I didn’t realize was that having no credit is essentially treated as bad credit.

I ended up landing my dream job in California and had just two weeks to move across the country, find an apartment, and get settled. That was the moment I was like, “OK, now I need a credit card.” Because of my credit history, or lack thereof, I couldn’t get an apartment and ended up living in a long-term Airbnb for two months. I had to buy everything needed to start a life from scratch, and I decided to put everything on my credit card.

It probably sounds a little unhinged, but there was a method to it. I had a $1,500 credit limit and never let my balance go over $350 without paying it off first. I’d pay the card every few days and sometimes even multiple times a week. I wasn’t spending money I didn’t have; I was just being extremely intentional and attentive. It worked because I was using the card regularly, but never extending my balance so much that it showed “bad faith.” And I always had the money to pay it back. Within three to four months, my credit score jumped from 590 to 730. It was tedious and required constant attention, but I honestly had no other choice than to try something and hope it worked. And it did. — Naomi, 24

My turning point came when I realized that avoiding credit wasn’t helping me build financial security.

From Fear To Fearless

I used to be afraid of using a credit card because I didn’t want to spend money I didn’t actually have. In college, not understanding how credit cards worked or how interest rates functioned made me feel hopeless and anxious about my finances. My turning point came when I realized that avoiding credit wasn’t helping me build financial security. Instead of fearing what I didn’t understand, I decided to take initiative and teach myself how credit scores work and how to use a credit card responsibly. I learned the importance of budgeting, paying balances in full early before the due date, and building financial responsibility on paper. I’ve now had a credit card for 10 months and have a 767 credit score. It isn’t perfect yet simply because my credit history is still new, but I know it will continue to improve because I pay everything in full early and stay within a budget. Learning how to use credit responsibly gave me confidence and control over my finances, and it shifted my mindset from fear to empowerment. — Ashleigh, 23

One day, I realized everything I ever wanted to know about finances was available to me on the Internet.

Social Media To The Rescue

I have experienced moments of hopelessness, but I now focus on not overwhelming myself with the future. The biggest thing that led to my debt was a lack of financial knowledge of my purchases and not understanding the long-term effects of what having credit card debt actually meant (like paying down added interest rates).

One day, I realized everything I ever wanted to know about finances was available to me on the Internet. Social media actually became a helpful educational tool for me. I started learning from financial content and also had conversations with older adults who shared their experiences and advice. Hearing real-life perspectives made everything feel more real and urgent. Now I take it one card at a time and pay more than the suggested minimum as I work toward becoming debt-free. I am much more aware of my finances now at 28 than I was in my late teens and early 20s, when I spent impulsively on concert tickets and various obsessions. Today, I am more selective about which events or trips I choose to fund, prioritizing experiences over material objects. — Liliana, 28

These interviews have been edited and condensed for clarity.