ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

3 Easy Ways You Can Pay off Debt Faster While Raising Your Credit Score Immediately.

Updated on July 11, 2017

The Path To Good Credit

Credit Scores Are A Mystery.

Staying on top of your personal finances can be a chore. Keeping out of debt, while paying off the debt we have and trying to save for the future can be impossible without a plan in place.

We all want to get out of debt faster and most of us would like our credit scores to be higher because we know that by increasing our credit scores, we have access to better interest rates and more financing power in general.

However keeping your score high is a puzzle for most of us. So let me ask you a question.

How much do you owe on your credit cards and what is your available credit? When you have a lot of credit being used compared to your available credit it can hurt your score.

This is called your credit utilization ratio, and it has the largest impact on your credit score out of any factor that you can actively manage, except for a bankruptcy.

So how is your credit utilization ratio calculated? Simple, take the amount you owe and divide by the total amount of credit you have available.

Like this; if you have two credit cards with a combined credit limit of $5,000 and you have $1,200 charged between both cards your utilization rate is 24%.

Total Debt Owed / Total Credit Available = Credit Utilization Ratio

$1,200 / $5,000 = 24%

What Is A Good Ratio?

There are a lot of factors that affect your score, and you utilization rate may have less affect than someone else’s. But a simple rule of thumb is that a higher utilization rate equals a lower score.

So if you continuously pay down your credit amounts you will raise your score by leaps and bounds when you lower the utilization rate. Plus you gain points for making your payments on time and keeping your accounts current.

For a goal, try to keep your credit utilization under 25%, this should minimize any negative effects on your credit score.

How Long Does Credit Utilization Impact My Credit Score?

This is some really good news, credit scoring agencies, like FICO, monitor this rate in live time. This means that if you pay off a significant portion of your credit cards your score will likely increase the next time they report your balances.

This is great for you since I am about to show you some ways you can pay down your debt quickly and raise your score faster than you knew possible.

Zero Percent Interest Transfer

Take advantage of a new credit card offer if your credit is in decent health. Many new cards have an introductory rate of 0% interest for 6 to 18 months. While you have the introductory rate you can transfer your current balances to the new card.

This may cost about 3% in transfer fees, but the advantage is that while you are not being charged interest all the payments that you make will push your balances lower at a much faster rate. This will help lower your utilization ratio more efficiently and in turn raise your credit score much faster.

Be careful with this option however, since you can easily slip right back into your old habits and max the new card out as well as the old ones. Make sure you are committed to getting out of debt before you take this option

Also this is not a good habit to get into, you should never think you can do this repeatedly and benefit every time. Eventually you will have to pay everything back, so this should be a "one and done" tactic.

Personal Loans

This may be a good option to help you tackle credit card debt. This strategy involves getting a small personal loan from your bank, and using the money received to pay off your credit card debts.

This option probably won’t save you as much as a zero percent interest transfer but it will give your credit score an almost immediate boost. This boost will come when your credit card reports your new balance of zero and your credit utilization goes down to nothing.

This is a grade A way to raise your credit score swiftly, but again, be sure you don’t slip into old habits and start charging those cards with new purchases. That’s not the way to keep your score high or stay out of debt.

Remember to that you will have interest on the personal loan, this interest should be less than the interest that was on your credit card so that you can save money over the course of the loan.

Aggressive Repayment Plan

Target your debts in order from least to greatest. Pay the first debt off and roll the payments into the next debt on your list. Keep doing this and you will be debt free faster than you ever thought possible.

Best of all is that while you are aggressively paying down your balances your score will increase on an almost monthly basis.

This is probably the best way you can pay down your debt in the long run, because paying your debt this way can save you tens of thousands of dollars a month once you’ve finished. In fact, I can show you how to put almost a year’s worth of wages back into your pockets here.

Managing Your Personal Finances

These are some ways you can boost your score and pay down your debt more effectively. You can even use my 4 Step Plan with the other strategies on this list to save yourself even more money.

Managing your debt is one of the most important things you can do for your personal finances. In almost every case when your debt goes down your wealth goes up.

Debt can cripple even the strongest families, and the the highest earners; it can keep you from living the life you want. Make the decision to get of debt and stay debt free, because this decision is one of the best ways for you to improve your life.

Tell Me What You Think!

What Strategy Is Most Appealing To You?

See results


    0 of 8192 characters used
    Post Comment

    • profile image

      Martha hines 

      2 months ago

      I started with MASTERCREDIT last week and they removed 12 negative items on my credit reports they are great and well worth the money!!! Thank you MASTERCREDIT. I totally refer their services to any one seeking credit restoration and rebuilding.



    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at:

    Show Details
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the or domains, for performance and efficiency reasons. (Privacy Policy)
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)