How Paying Off Debt Can Improve Your Credit Score

How paying off debt can help repair your credit and improve your credit score.It’s perfectly normal to be worried about your credit score. After all, you’re constantly told that having a good credit score is important for a huge variety of reasons, and it’s a point of pride for many people. So what do you do when your scores are sinking like the Titanic because you’ve hit the “debt iceberg?”

Instead of letting your credit score sink to the ocean floor, or paying people to do credit “repair”, there’s a simple solution that will greatly benefit both your credit AND you: focus on paying off your debt.

Making consistent, on-time payments that reduce your balance is a surefire way to help repair & improve your credit score.

What is a credit score, and how is it calculated?

Before we get into why paying off debt works to help repair your credit, let’s talk about the kinds of things that make up a credit score. It’s important to know that to understand just how paying off debt can help.
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Thinking of Credit Repair? Think Twice

Thinking of credit repair? Think twice

You’ve probably heard ads promising to fix bad credit. The thing is, some credit repair agencies use tactics that are just plain illegal, that don’t work, or both — leaving you out hundreds or thousands of dollars; the last thing you need when you’re having money trouble.

No one can remove “accurate and timely” negative information from anyone’s credit report, but sometimes people claim that they can. So how do you tell if a credit repair offer is a scam?
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Debunking the “Never Close Your Oldest Credit Card” Myth

In this video, I interviewed John Ulzheimer (who is a nationally recognized expert — and expert witness — on credit reporting, credit scoring and identity theft) about one of the biggest credit score myths out there: the idea that closing a credit card is bad because it causes you to lose the value of the card’s age. Click the video above to hear what he has to say, or continue on to read the transcript if you prefer that.
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