If you’re looking to improve your credit score, one of the best things you can do is pay down your debt. But with so many different types of debt, it can be hard to know where to start.
First, let’s talk about why paying down debt is so important for your credit score. When you have a lot of debt, it can hurt your credit utilization ratio, which is a big factor in your credit score. Your credit utilization ratio is the amount of credit you’re using compared to the amount of credit you have available. Experts recommend keeping your credit utilization ratio below 30% to maintain a good credit score.
With that in mind, here are the debts you should focus on paying down first:
Of course, these are just general guidelines. Your individual situation may be different, and you should always consult with a financial advisor before making any big financial decisions. But if you’re looking to improve your credit score, paying down your credit card debt should be your first priority.
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