7 debt payoffs that boost your credit score the most

7 Debt Payoffs That Boost Your Credit Score the Most

Paying off debt is one of the smartest ways to improve your financial health and build a stronger credit score. The key is knowing which debts to focus on first. Here are seven debt payoffs that can make the biggest difference to your credit score.

1. Credit Card Balances

High credit card balances can hurt your score the most. Try to keep your usage below 30% of your limit — or even lower. Paying off these balances first gives your credit score a quick boost.

2. Past-Due Accounts

If you’ve missed payments, catching up as soon as possible can help. Late payments stay on your record, but bringing your account current shows lenders you’re responsible again.

3. Personal Loans

Paying off personal loans reduces your overall debt and improves your debt-to-income ratio — two key factors lenders look at when judging creditworthiness.

4. Store Cards

Store credit cards often have high interest rates and small limits. Paying them off helps reduce your credit utilization and keeps your score steady.

5. Car Loans

Car loans are installment debts, and paying them on time or clearing them early can help strengthen your credit mix and payment history.

6. Student Loans

If you have student loans, consistent payments matter more than early payoff. Making steady, on-time payments builds long-term credit trust.

7. Small Outstanding Bills or Collections

Sometimes small unpaid bills or collection accounts hold your score back. Paying them off — or negotiating a “paid in full” status — can improve your record

Final Tip

Paying off debt doesn’t just raise your credit score — it gives you peace of mind and more control over your money.

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