Fix Bad Credit - Pay Down Your Debts
If you’re carrying a large debt load, your credit score will suffer. Paying down your debts to a minimum will help boost your credit score.
For example, if you have a $1,000 limit on your credit card and you regularly carry a balance of $900, you’ll be a less attractive credit risk to lenders than someone who has the same credit card but carries a smaller balance of $100 or so.
If you’re serious about elevating your credit score, then start with the largest debt you have and start paying it down so that you’re using a lesser percentage of your credit total.
Generally, try to make sure that you use no more than 50% of your total credit.
For example, if your credit card has a limit of $5,000, make sure that you pay it down to at least $2,500, and work at carrying no larger balance for that card. If possible, reduce the debt even further.
If you can pay off your monthly credit card balance in full… that’s even better. What counts here is what percentage of your total credit limit you are using - the lower the better.
fix bad credit