Improving Credit Scores Through Credit Card Payments

Paying off credit card debt is one of the best ways to raise your credit score. However, if you have a lot of debt, just figuring out how to pay off your credit cards can be a daunting task. Paying off credit cards should be completed one step at a time, and as you continue to pay off your credit cards, you'll see your credit score rise over time, even as your debt eventually dwindles down to nothing.

Instructions

1

Gather all of your credit card bills together. Use them to figure out how much money you owe, and on what cards. If you have any questions about the amount you owe, contact the credit card company via the contact information on your statement.

2

Figure out a plan for paying off your debt. The best method to use is the snowball method. To use this method, choose either the card with the smallest balance, or the one with the largest interest rate. Send in a larger payment on this card until you pay it off, and pay the minimum balance on all your other cards. When the card you chose is paid off, combine that card's payment with the minimum payment on the next card. Every time you pay off a card, combine that card's payment with the next card's minimum payment, until all your cards are paid off.

3

Check your credit report after six weeks of making consistent credit card payments with the snowball method. Look at how much available credit you have versus how much debt you have, and make sure that all of your personal information is correct. If your information is incorrect or outdated, or you suspect fraudulent activity, call the credit bureaus immediately to correct it.

4

Continue to pay off your credit cards using the snowball method. As you pay each card off, cut it up, or put it away so you aren't tempted to use it. Don't cancel the credit card, as this can have a negative effect on your credit score.

5

Remember to check your credit score every six weeks to see your progress. As you pay down your credit cards and the amount of available credit expands, you will see your credit score improve dramatically.