A veteran lived in his car with a credit score under 600. Six months later, he had a 756 score and keys to his own place — how he did it

“They’re asking me for three times the rent,” he told MarketWatch. “They’re asking the co-signer to make five times the rent.”

Adams hadn’t realized his credit score had dropped into the 500s — giving him a ‘poor’ rating. When shopping for a new car, he discovered that the women he had been in a relationship with at the time had been using his credit.

Fast forward to October, and Adams has a credit score of 756, bought a new car and signed a lease for his own place. Here’s how he did it.

Understanding your credit score

For Adams, the turning point came when he discovered Soldier On, a nonprofit that aims to end veteran homelessness. The organization put him in touch with Money Management International, where a financial counselor worked with him to repair his credit profile.

Part of this process involved finding a higher-paying job to boost his income. But the financial counselor also helped him dispute incorrect charges on his profile and link his accounts so on-time bill payments would be reported to the credit bureaus.

Six months later, he had a score of 756 — opening the door to more financial freedom.

There are three major credit bureaus in the U.S.: Equifax, Experian and TransUnion. Your credit score may be slightly different at each of the bureaus, since not all lenders report to all three bureaus.

Lenders use this information when deciding whether to approve you for financing such as credit cards, auto loans, mortgages, personal loans and student loans.

“Your credit report may also be used by insurance providers to help them determine policy rates, landlords for rental screening, and even employers for a background check when permitted by law,” according to TransUnion.

Basically, by analyzing your credit history, they’re weighing factors to determine how likely you are to pay back your loan. This not only affects whether you get a loan, but how much you’ll pay for it. And a lower score typically means a higher rate.

The FICO model ranks 579 or less as poor, 580 to 669 as fair, 670 to 739 as good, 740 to 799 as very good and 800+ as excellent.

A poor score means you’ve likely defaulted on past loans, which indicates you’re a higher risk for lenders. While a good score means you’re more likely to qualify for standard loans and competitive interest rates, a very good or excellent score gives you access to better rates and more favorable terms.

Why you should check your credit score

It’s a good idea to check your credit score regularly so you’re not caught off guard if there’s an issue. If you notice an error on your credit report, file a dispute with the credit bureau in question (it’s a bit of a process, but the credit bureaus are required to investigate and report back to you).

And it happens more often than you might think: a 2024 survey by Consumer Reports found that 44% of respondents found at least one error in their credit reports, including 27% who found an error relating to debt information.

Plus, it could help you spot identity theft, which could cause severe damage to your credit score. For example, if someone steals your identity, they could get a credit card in your name. Then, when they don’t pay the bill, the account is reported as delinquent — on your credit report.

You can review your credit reports for free through AnnualCreditReport.com.

If you’re unaware that your credit score has dropped, you may find yourself paying higher rates than you would otherwise qualify for — or, in a worst-case scenario, find yourself sleeping in your truck because landlords slam the door in your face.

How to boost your credit score

If your credit score is holding you back, there are steps you can take — like Adams did — to boost your score.

“You can’t be a passive passenger to your own credit story,” Adams told MarketWatch. “You have more power than you think.”

One way you can boost your score is by linking household bill payments — such as utility, cellphone, cable, internet, streaming, insurance and rent — to your credit file. Experian does this in-house through Experian Boost, while TransUnion uses the Credit Spark platform.

Normally those bill payments wouldn’t factor into your overall credit score, since they’re not traditionally reported to the credit bureaus. But if you link your accounts — and if you pay your bills on time — it could help to rebuild your credit score.