Prioritizing paying off debt is important in improving your credit score. One way is to use a highest-interest-first plan.
List your debts by interest rate from highest to lowest. Focus extra money on the debt with the highest interest rate.
Another way is to pay off debts that most affect your credit score. This can help you qualify for better loan terms.
Additionally, you can also apply for and use a personal loan to build your credit score in several ways.
Debt consolidation loans and credit-builder loans can help you pay off the balances of your credit cards.
Using these types of loans can also lower your credit utilization ratio, a key determining factor in your credit score.
It's important to remember that any loan that you take out is also more debt that you take on.
Therefore, you should limit any spending behavior that would add more debt while you're paying off your debt.
When you control your spending habits, you will be able to pay back your debt faster and manage your finances better.