How to Pay Off Credit Card Debt Without Killing Your Credit Score
Introduction Struggling with credit card debt can feel overwhelming, but paying it off doesn’t have to harm your credit score. In fact, with the right strategies, you can eliminate debt while maintaining or even improving your credit health. This guide will walk you through actionable steps to pay off credit card debt effectively, protect your credit score, and achieve financial freedom. Whether you’re dealing with high interest rates or mounting balances, these tips will help you take control without sacrificing your creditworthiness. Why Paying Off Credit Card Debt Matters for Your Credit Score Credit card debt impacts your credit score in several ways, primarily through your credit utilization ratio , payment history, and overall debt load. Your credit utilization ratio—the percentage of available credit you’re using—accounts for about 30% of your FICO score. High balances can signal risk to lenders, lowering your score. Late payments, which make up 35% of your score, can also...
