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How quickly will paying off credit cards improve your score?

If you’re looking to improve your credit score, one of the quickest ways to do so is by paying off your credit cards. Here’s why:

  1. Lower Credit Utilization Ratio: Your credit utilization ratio is the amount of credit you’re using compared to the amount of credit you have available. To improve your credit score, you’ll want to keep your credit utilization ratio below 30%. 
  2. Positive Payment History: Your payment history is the most important factor in your credit score. By making on-time payments every month, you establish a positive payment history. By paying off your credit cards, you not only lower your credit utilization ratio but also show lenders that you’re a responsible borrower.
  3. Lower Interest Charges: If you have credit card debt, you’re likely paying interest charges each month. By paying off your credit cards, you’ll eliminate those interest charges and save money in the long run.
  4. Quicker Improvements: Unlike other factors that take time to improve, such as length of credit history, paying off your credit cards can have an immediate impact on your credit score. You can see improvements within a few weeks of paying off your credit cards.

To pay off your credit cards quickly, consider using the debt snowball method. This involves paying off your smallest debt first and then moving on to your larger debts. By paying off smaller debts first, you gain momentum and motivation to tackle your larger debts.

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