15 Things That Can Hurt Your Credit Score

andresr / Getty Images

13. You Pay Down the Wrong Debt First

Paying down your balances can improve your credit score. How much of an improvement you see depends on which debt you pay.

For example, you won’t see much of an increase in your score if you pay off an auto loan, Kelly said. That’s because the credit utilization on installment loans, such as car loans, isn’t weighed as heavily in credit scoring as your utilization of revolving credit.

How to avoid it: If you have a choice of which debt to tackle, “pay down credit cards first to boost your score,” Kelly said.

How to fix it: There isn’t harm done in paying off debt, just opportunities passed up. Pay off credit card debt at the next opportunity.

PREV1 ... 13 14 1516NEXT

Leave a Comment

Your email address will not be published. Required fields are marked *

related posts
from our network