Is debt overload hurting your credit?
Learn how to handle your financial situation.
For most of us, debt is an everyday part of life. Too much debt can hurt your Credit Score, but not using any credit can be equally damaging. Learning how to manage your debt is the first step towards good credit.
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Managing your finances
Somewhere along the line, “debt” got a bad name. In reality, without debt you’ll never be able to create a strong Credit Score, and effectively managing that debt is key!
Yes! Credit Matters: Using Your Report for Debt Management
Managing your debt can be a challenge during the best of times. Yet, repaying your debt now can help you reach financial goals even faster. The first step towards getting out of debt is knowing how much you owe. Using your Credit Report to see all of your debts in one place is a great way to start. Review your Report, and order your debts from smallest to largest. Tackle the smallest debts first. Once a debt is paid off, add that monthly payment amount to the next smallest debt until eventually everything is paid off.
Yes! Credit Matters: When to Consider Bankruptcy
To most of us, bankruptcy is a scary word. Yet, for some of us it remains a viable option when our debt is spiraling out of control. Before considering bankruptcy, it’s a good idea to ask creditors to work with you by reducing your interest rates, waiving late fees, or accepting smaller payments until your situation improves. You might also try consolidating your debts to reduce the amount paid in interest. If your debts are still unmanageable, it may be time to contact a bankruptcy attorney.
See how different events might impact your Credit Score. The Score Planner is available to both members and non-members.
Types of questions you'll see:
- What if I pay off that card?
- What if I apply for a loan?
- What if I have a late payment?
Question: Should I cancel my credit card?
Answer: Canceling your cards isn't always the best option since it changes your balance-to-limit ratio, which could hurt your Credit Score. On the other hand, canceling credit cards could actually help your Score if you have too many open accounts on file since many lenders see this as a high potential for debt.
Taking good care of your credit can help you get the things you want. Get started now!Get My Score