Tips to Cut Credit Card Debt.pdf by Lee_Gallig


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									Tips to Cut Credit Card Debt

Many individuals who make a commitment to get out of debt want to do so without harming
their credit in the process. This isn’t impossible, but having a general idea of how credit scores are
calculated can help. The following are three simple tips to eliminate debt without hurting credit.

1 – Continue to make payments on all debts: The best thing you can do for your credit is to make
payments on time. When you’re trying to eliminate debt, it can be tempting to concentrate on
one debt at a time and let the others fall to the wayside. To avoid hurting your credit, however, you
need to make at least the minimum payment on all debts in addition to applying extra payments to
one debt (often the one with the highest interest rate).

2 – Avoid applying for new credit: Every time you apply for new credit, it is recorded as an inquiry
on your credit report. Too many of these can drag down your score. If you’re interested in getting a
new card or line of credit so you can do a balance transfer or take advantage of a lower interest
rate, don’t apply for it unless you are fairly certain it will be approved. Signing up for numerous
cards in the hopes that one company will approve you can definitely hurt your credit.

3 – Don’t cancel existing credit: Once a balance has been fully paid, many people are tempted to
cut up the card and cancel the account. Doing that can actually hurt your credit, however, as the
length of time you have had credit is used to calculate your credit score. Cut the card up if you
want to, but leave the account open once the balance is paid off.

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