<\/div>\n\n\n\n
If you’re ready to start wiping out debt, the top three items are your number one concern. For those who need to rapidly raise their score, once the bills are getting paid on time, the fourth item in the list above is critical.<\/p>\n\n\n\n
There are two pay-off processes you can use to wipe out debt. The first is the snowball. To use the snowball method, rank your debt from smallest to largest. Make the minimum on all payments but the smallest debt while piling everything you can spare on that top item. When you wipe out the littlest debt, roll the payment amount onto the next one. An avalanche is similar, but you rank the debt from highest interest rate to lowest and pay off in that order.<\/p>\n\n\n\n
If you need to free up cash quickly, rank your total loan payment from largest to smallest. For example, if you’re planning a move or saving for a down payment, wiping out the big payments and freeing up cash for savings can change your financial picture.<\/p>\n\n\n\n
Finally, track what’s owed against the total credit cap for each account. Getting your credit utilization in order really won’t make that much of a difference to your bill-paying process, but it will help your score almost as quickly as paying bills on time.<\/p>\n\n\n\n
A Word on Consolidation Loans<\/h2>\n\n\n\n
A consolidation loan is a big patch for your sinking financial ship. However, it’s easy to get into a lot of trouble with a poorly managed consolidation loan. If you have multiple credit cards to pay off with your consolidation loan, retire the cards, or at least put them away so they’re hard to get to and a hassle to use.<\/p>\n\n\n\n
Remember that consolidation loans report to credit bureaus just like credit cards and utilities do. If you’re not able to make these payments on time, you can actually do your credit more damage over time.<\/p>\n\n\n\n
If you are fully able to make the payments, consider asking for help, such as a co-sign, from a friend or family member that has good credit. Do not do this if there’s a risk of default; you can destroy relationships this way and it’s just not worth the wreckage. Should you have someone in your life who will co-sign for you, get in the habit of paying the bill early and notifying them that you’re staying on top of it. Your debt will impact their ability to borrow, and if you default on the loan, you will hurt their credit too.<\/p>\n\n\n\n
In Conclusion<\/h2>\n\n\n\n
Improving your credit score will take months. Sign up for free monitoring so you get a notification of changes, especially payoffs, and check your score after the first of the month to note your progress. Once you know what factors to tackle, you can raise that number<\/p>","protected":false},"excerpt":{"rendered":"
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