PICK ONE OR TWO ACCOUNTS YOU CAN PAY OFF NOW

     Now that you have raised some extra cash through cutting costs, selling old junk, or earning some money on the side you should completely pay off as many credit accounts as you can. Paying off just one loan in its entirety will boost your score as it will count as a satisfied account. Typically, in order to get started, you would pick the account that you owe the least amount of money on. That way you can get it done quickly and start getting the benefit of a satisfied account on your credit record!

     Real Life Story: In elementary school I was not that great at math. It was a hard subject for me. I remember my 5^th grade teacher, Miss Beverly, always told me to answer the easy questions first on my math test. The reason was that when you quickly get the easy stuff out of the way you get a rhythm going that makes it easier to work on the harder stuff. The same theory can apply to paying off your loans.

     One note about paying off your debt: at this particular point you do not want to close the account, just pay it off. You receive two benefits: you show that you have available credit again and you are showing a satisfied account. Both of these help your credit score.  I can also tell you from experience it is a great motivator. You will feel good about yourself when the account is paid in full.

     Also remember that there are more things to be looking for other than just credit card accounts. Things like utility bills, tax liens, and back taxes can show up on your credit report as negatives. It is just as important to clean up those outstanding balances as it is credit accounts.