Many consumers across the country often wonder how they can improve their credit while reducing their credit card debt.
This can be a confusing process, because many consumers are unsure whether paying off their credit card debt will actually help or hurt their credit score. A new report from the Washington Post says that consumers should always be confident that paying off their debt and not accumulating more of it is always going to boost their score.
The best way to do this, the Post’s report says, is to pay bills on time. This is because payment history comprises 35 percent of an individual’s credit report, and the more on-time payments a consumer makes, the better their score will be. Paying when a bill is due is also a way to save money because it lowers the total amount due, and therefore how much interest the consumer pays, as well as eliminating any threat of late fees.
A recent report in the New York Times said that reducing credit card debt is important because more lenders are taking greater steps to verify the finances of those that apply for loans.