{"id":149891,"date":"2021-01-08T13:01:00","date_gmt":"2021-01-08T10:01:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/heres-one-way-to-pay-down-debt-and-help-your-credit-score\/"},"modified":"2021-01-08T13:01:00","modified_gmt":"2021-01-08T10:01:00","slug":"heres-one-way-to-pay-down-debt-and-help-your-credit-score","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/heres-one-way-to-pay-down-debt-and-help-your-credit-score\/","title":{"rendered":"#\n  Here\u2019s one way to pay down debt and help your credit score"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_89 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6af4ca7c96f62\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6af4ca7c96f62\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/heres-one-way-to-pay-down-debt-and-help-your-credit-score\/#Find_the_right_debt_payoff_strategy_for_you\" >Find the right debt payoff strategy for you<\/a><ul class='ez-toc-list-level-6' ><li class='ez-toc-heading-level-6'><ul class='ez-toc-list-level-6' ><li class='ez-toc-heading-level-6'><ul class='ez-toc-list-level-6' ><li class='ez-toc-heading-level-6'><ul class='ez-toc-list-level-6' ><li class='ez-toc-heading-level-6'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/heres-one-way-to-pay-down-debt-and-help-your-credit-score\/#Tackle_high_credit_utilization\" >Tackle high credit utilization<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-6'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/heres-one-way-to-pay-down-debt-and-help-your-credit-score\/#Is_this_debt_payoff_method_for_you\" >Is this debt payoff method for you?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-6'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/buradabiliyorum.com\/en\/heres-one-way-to-pay-down-debt-and-help-your-credit-score\/#More_ways_to_improve_your_credit_profile_while_crushing_debt\" >More ways to improve your credit profile while crushing debt<\/a><\/li><\/ul><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/buradabiliyorum.com\/en\/heres-one-way-to-pay-down-debt-and-help-your-credit-score\/#Sean_Pyles\" >Sean Pyles<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong>#<br \/>\n  Here\u2019s one way to pay down debt and help your credit score<br \/>\n<\/strong>&#8221;<\/p>\n<h2 class=\"article__subhead\" itemprop=\"alternativeHeadline\"><span class=\"ez-toc-section\" id=\"Find_the_right_debt_payoff_strategy_for_you\"><\/span>\n  Find the right debt payoff strategy for you<br \/>\n<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><\/p>\n<div class=\"column column--full article__content\">\n<div id=\"js-article__body\" class=\"article__body article-wrap at16-col16 barrons-article-wrap\" itemprop=\"articleBody\" data-sbid=\"WP-MKTW-0000114606\">\n<div class=\"barrons-article-ad-wrapper\">\n<div data-track=\"barrons-article-ad-wrap\" class=\"barrons-article-ad sticky_item\">\n<div class=\"barrons-main-article-ad-target sticky_target body_ad\" aria-hidden=\"true\"><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p>       <em>This <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.nerdwallet.com\/blog\/finance\/the-debt-payoff-method-that-can-help-your-credit-too\/?utm_campaign=ct_prod&amp;utm_source=syndication&amp;utm_medium=wire&amp;utm_term=anne-stanleymarketwatch-com&amp;utm_content=727015\" class=\"icon none\">article<\/a> is reprinted by permission from <\/em><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.nerdwallet.com\/blog\/?utm_campaign=ct_prod&amp;utm_source=syndication&amp;utm_medium=wire&amp;utm_term=anne-stanleymarketwatch-com\" class=\"icon none\"><em>NerdWallet<\/em><\/a><em>.\u00a0<\/em><\/p>\n<p> Should you focus on paying off your credit card debt or building your credit score?<\/p>\n<p>Why not both?<\/p>\n<div class=\"paywall\">\n       While it might seem hard to better your score while you\u2019re paying down debt, multitasking here might be easier than you think. And a better score can open doors to credit products that help accelerate your debt payoff.<\/p>\n<h6><span class=\"ez-toc-section\" id=\"Tackle_high_credit_utilization\"><\/span><strong>Tackle high credit utilization<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h6>\n<p>Give your credit profile a boost by focusing on accounts with the highest\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.nerdwallet.com\/blog\/finance\/credit-utilization-improving-winning\/?utm_campaign=ct_prod&amp;utm_source=syndication&amp;utm_medium=wire&amp;utm_term=anne-stanleymarketwatch-com&amp;utm_content=727015\" class=\"icon none\">credit utilization<\/a>\u2014the ones where you\u2019re using the highest proportion of your credit limit. Utilization is one of the most important factors influencing your score, so while you\u2019re washing away your debt, you\u2019re also nurturing your credit.<\/p>\n<p><strong>Related:<\/strong> Does one late payment hurt my credit score?<\/p>\n<p>Credit experts advise using no more than 30% of the limit on any card, and lower is better for your score. Figure out your utilization by dividing an account\u2019s current balance by its limit, then multiplying by 100 to see it as a percentage. Or, sign up for a free credit score service that shows utilization. Many card issuers, banks and personal finance websites offer the information.<\/p>\n<p>\u201cSometimes paying off the debt is the best way to improve your credit score,\u201d says Tania Brown, a Georgia-based certified financial planner with SaverLife. \u201cFor every debt you pay, that is improving your utilization.\u201d<\/p>\n<p><strong>Also read:<\/strong> 5 credit mistakes that can come back to bite you<\/p>\n<p>Bettering your credit score can open doors to products that could help you wipe out debt faster and cheaper:<\/p>\n<div id=\"cx-membership-tile\"><\/div>\n<ul class=\"articleList\">\n<li>\n      <strong>Balance transfer credit cards:<\/strong>\u00a0Many of these products offer 0% APR promotional periods; that lets all of your payment go to principal, not interest. You\u2019ll likely need a good or excellent credit score to qualify for one. Make sure you can tackle your debt within the promotional period, before the interest rate kicks in, and figure in the costs of the transfer fee to confirm you\u2019ll save overall. Note that moving several debt balances to a new card could run up a high utilization on the account. But if you plan to wipe out the debt, your score will quickly recover as you pay it down.<\/p>\n<\/li>\n<li>\n      <strong>Personal loans:<\/strong>\u00a0These installment loans can help you consolidate credit card debt, and you don\u2019t need an excellent credit score to qualify. Moving high-interest credit card debt to a lower-interest loan can make paying it off easier. Further, if you have only revolving accounts on your credit report, like credit cards, the addition of an installment loan can help your credit by diversifying your profile.<\/p>\n<\/li>\n<\/ul>\n<h6><span class=\"ez-toc-section\" id=\"Is_this_debt_payoff_method_for_you\"><\/span><strong>Is this debt payoff method for you?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h6>\n<p>The\u00a0debt payoff\u00a0method that\u2019s right for you depends on your personality and money objectives.<\/p>\n<p>\u201cWhen considering payoff methods, it all starts with what\u2019s your goal,\u201d says Michelle Goeppner, director of credit product strategy at Alliant Credit Union. \u201cThink about your whole financial portrait to think about the best possible method to get there. If your utilization is too high, that can hinder goals.\u201d<\/p>\n<p>Here are a couple of other debt payoff strategies \u2014 and the goals they can help you achieve:<\/p>\n<ul class=\"articleList\">\n<li>\n      <strong>Debt snowball:<\/strong>\u00a0With this method, you focus all your extra payoff money on your smallest debt while paying minimums on your other accounts. When you pay off that account, roll that payment into your next-smallest debt. If your goal is to stay motivated during your payoff, this gets you the quickest \u201cwin\u201d of wiping out a debt.<\/p>\n<\/li>\n<li>\n      <strong>Debt avalanche:<\/strong>\u00a0Focus on paying off debts with the highest interest rates first if your goal is to pay as little interest as possible. This is best for those who can stay motivated over the long haul, without the early wins offered by debt snowball.<\/p>\n<\/li>\n<\/ul>\n<h6><span class=\"ez-toc-section\" id=\"More_ways_to_improve_your_credit_profile_while_crushing_debt\"><\/span><strong>More ways to improve your credit profile while crushing debt<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h6>\n<p>No matter which payoff method you choose, you can layer on some simple tactics to help improve your credit profile while you wipe out debt:<\/p>\n<ul class=\"articleList\">\n<li>\n      <strong>Make multiple credit card payments a month:<\/strong>\u00a0This can help you manage your balances and keep overall utilization low throughout the billing cycle. Try treating your credit card like a debit card by covering charges once they post on your account.<\/p>\n<\/li>\n<li>\n      <strong>Make on-time payments:<\/strong>\u00a0Payment history has the\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.nerdwallet.com\/blog\/finance\/what-makes-up-credit-score\/?utm_campaign=ct_prod&amp;utm_source=syndication&amp;utm_medium=wire&amp;utm_term=anne-stanleymarketwatch-com&amp;utm_content=727015\" class=\"icon none\">biggest influence on your credit score<\/a>, so hitting payment deadlines is important. You can make this easier for yourself by automating payments or setting up reminders about due dates.<\/p>\n<\/li>\n<li>\n      <strong>Scrub your credit report:\u00a0<\/strong>Errors in credit reports aren\u2019t uncommon. Be sure to\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.nerdwallet.com\/blog\/finance\/how-to-use-annualcreditreport-com\/?utm_campaign=ct_prod&amp;utm_source=syndication&amp;utm_medium=wire&amp;utm_term=anne-stanleymarketwatch-com&amp;utm_content=727015\" class=\"icon none\">read through your credit reports<\/a>\u00a0at least annually to check for wrong or outdated information that may be dragging down your score. Dispute any errors you find.<\/p>\n<\/li>\n<\/ul>\n<p><strong>More From NerdWallet<\/strong><\/p>\n<ul class=\"articleList\">\n<li>\n      <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.nerdwallet.com\/blog\/finance\/raise-credit-score-fast\/?utm_campaign=ct_prod&amp;utm_source=syndication&amp;utm_medium=wire&amp;utm_term=anne-stanleymarketwatch-com&amp;utm_content=727015\" class=\"icon none\">8 ways to build credit fast<\/a><\/p>\n<\/li>\n<li>\n      <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.nerdwallet.com\/blog\/finance\/credit-score-ranges-and-how-to-improve\/?utm_campaign=ct_prod&amp;utm_source=syndication&amp;utm_medium=wire&amp;utm_term=anne-stanleymarketwatch-com&amp;utm_content=727015\" class=\"icon none\">Credit score ranges: How do you compare?<\/a><\/p>\n<\/li>\n<li>\n      <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.nerdwallet.com\/blog\/finance\/how-to-manage-debt\/?utm_campaign=ct_prod&amp;utm_source=syndication&amp;utm_medium=wire&amp;utm_term=anne-stanleymarketwatch-com&amp;utm_content=727015\" class=\"icon none\">Different ways to zap your debt: Which is for you?<\/a><\/p>\n<\/li>\n<\/ul>\n<p><em>Sean Pyles is a writer at NerdWallet. Email: spyles@nerdwallet.com. <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Twitter<\/a>: @SeanPyles.<\/em><\/p><\/div>\n<\/div><\/div>\n<p><\/p>\n<div class=\"byline article__byline\">\n<p>      <span>By<\/span><\/p>\n<div class=\"author  hasMenu\" data-scrim='{\"type\":\"author\",\"header\":\"Sean Pyles\",\"subhead\":\"The Wall Street Journal\",\"list\":[]}' itemscope itemprop=\"author\" itemtype=\"http:\/\/schema.org\/Person\">\n<h4 itemprop=\"name\"><span class=\"ez-toc-section\" id=\"Sean_Pyles\"><\/span>Sean Pyles<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/p><\/div>\n<\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"http:\/\/www.marketwatch.com\/news\/story.asp?guid=%7B21005575-02D4-D4B5-4572-D1BFAED7B2EB%7D&#038;siteid=rss&#038;rss=1\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# Here\u2019s one way to pay down debt and help your credit score &#8221; Find the right debt payoff strategy for you This article is reprinted by permission from NerdWallet.\u00a0 Should you focus on paying off your credit card debt or building your credit score? Why not both? 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