Guides / Know your debt
Debt and your credit score
Paying on time and paying down balances both help.
Paying off debt usually helps your credit over time, especially paying on time and lowering credit card balances.
What matters most
- Payment history: on-time payments are the biggest factor
- Credit utilization: how much of your card limits you're using
- Length of credit history
- New credit applications
Good to know
- Set up automatic minimum payments so you're never late
- Paying off a card and keeping it open (if there's no annual fee) can keep utilization low
- Check your credit reports for errors and dispute them for free with the credit bureaus
General educational information, not financial or legal advice. Nickel Keepers isn't paid by any lender, card company or debt relief company.