Manage your credit cards debt to improve credit score

It’s very important to manage debt to improve your credit score. One of the major factor of credit score is how much of your available credit limit you are actually using. It’s better to have lower balances compared to total credit limit you have. The total credit limit is the limit for all credit cards and limit on the revolving accounts together.

Paying down your debt overtime is good for credit score. That shows the consistency and responsibility for credit handling in long term. It helps in improving your score over time.

You need to reduce your debt instead of transfering you balances around. Sometimes credit card companies offer attractive offer to attract new customer like providing no interest on balance transfer. But remember the interest rate is very high after the promotional offer period. If you are transfering the balances you are going to hurt your score more. Better be paid down your debt and increase the available balance.

You may work on paying off the debt. Prioritize paying off the credit cards first  that have balances close to the credit limit. Your goal is to pay off the debt and you should prioritze the way it will help your score.  The most important thing is to control your spending.