Question about paying down credit card debt

I used to only pay the minimum on my $4,500 balance, which kept my score stuck at 620. After six months of paying $300 a month, my score jumped 40 points. Has anyone else seen a big jump from focusing on utilization?

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2 Comments

laura_lane5mo ago

Oh, I learned that the hard way. My score was in the basement for years because I just chipped away at the minimum. Once I finally buckled down and paid more than the interest, it was like my score woke up from a long nap. Seeing that number climb almost makes up for all the takeout I skipped.

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avery3895mo ago

Yeah, that "woke up from a long nap" feeling is real. Something I noticed that nobody talks about is how it can mess with your credit limits. After my score jumped from paying down a card, the issuer actually lowered my limit, which tanked my utilization ratio again. It felt like a punishment for doing the right thing.

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