#3: Actively Use One or Two of Your Best Cards, Forget the Rest (but don’t close them out) If you are have a low credit score and are having debt problems, this will require a great deal of willpower to change your habits. Don’t spend anymore on those additional cards. And if the cards that you are actively using are reaching their limits, that means one thing – you need to spend less and budget your money better – and starting paying in cash. This will be temporary until you can get out your bad spending habits.
#4: Don’t Push Your Cards to Their Credit Limits If you are having an issue maxing out a particular card with a lower limit, try to spread your spending out across another card. It’s better to keep the utilization down on each card to help improve your credit rating. Shoot for 25%-30% or lower with your utilization rate, even if you are consistently paying them off in full every month.
#5: Reduce Your Credit Card Balances All You Can A recap of a detail in Point #1 but important to mention again. The more you can pay down those balances, the less interest will accrue for your debt management issues and the lower your credit utilization will be. As stated above, lower utilization should help increase your credit score quickly.
Managing your financial future is as important as anything else. Make sure to stay on top of it.