Many people think you can't improve your credit score while paying off debt, but that's not true. Here are proven strategies to boost your score during debt payoff:
1. Keep Credit Utilization Low
- Aim for under 30% utilization on each card
- Even better: keep it under 10%
- Pay down balances before statement dates
- Consider making multiple payments per month
2. Never Miss Payments
- Payment history is 35% of your score
- Set up automatic minimum payments
- Pay on time, every time
- Even $5 over minimum helps
3. Don't Close Old Credit Cards
- Keep accounts open to maintain credit history
- Older accounts boost your average account age
- Put small recurring charges on old cards
- Pay them off immediately
4. Strategic Debt Payoff Order
- Pay off cards with highest utilization first
- This has immediate score benefits
- Balance this with your debt strategy
5. Request Credit Limit Increases
- Call your card companies every 6 months
- Higher limits = lower utilization percentage
- Don't spend the extra credit
6. Monitor Your Credit Report
- Check for errors monthly
- Dispute any inaccuracies immediately
- Use free services like Credit Karma
Timeline Expectations:
- Utilization changes: 1-2 months
- Payment history improvements: 3-6 months
- Overall score increases: 6-12 months
Remember: A higher credit score saves you money on future loans and can help with employment and housing applications.