Increase Your Credit Score

Credit card debt makes up 30% of your Fico Score.

Credit Score Credit Card Debt Team Jefferson

How Credit Score is Calculated

 

One of the best ways to increase your credit score is to start paying off your credit card debt? The “amounts owed” makes up 30% of your Fico score. To begin making a dent on the credit card balances start by making bigger payments on the card with the highest annual percentage rate. If possible double up on your monthly payment. Once that card is paid off you can then begin to pay on the second highest annual percentage rate card. Add the monthly payment money from the first card (now that it is paid off) and put it towards making an even larger payment on the second card.  You will then gain momentum as you work towards paying off your credit card debt, and save a TON of money in interest rates. Resist the urge to charge on the credit cards again unnecessarily and don’t close them and you will see an increase in your credit score.

 

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