I've been reading up on ways to boost my credit and it seems like there are two main strategies that pop up everywhere—either paying down existing debt or getting your credit limits raised to lower your utilization. I'm kinda leaning toward paying down debt first since it feels more responsible, you know, but raising limits sounds easier and quicker. Wondering what others have tried and what's worked better for folks around here?
I've tried both, and here's my two cents from personal experience:
- Paying down debt definitely feels better psychologically. It's satisfying to watch balances shrink, and it actually tackles the root of the issue—owing money. Plus, lenders love seeing shrinking balances over time, so it can help long-term too.
- Getting limits raised is quicker for sure, but it's kind of a temporary fix. Your utilization drops immediately (which boosts your score short-term), but if you're still carrying high balances, you're not really solving much...just kinda kicking the can down the road.
Personally, I prefer paying debt first because it's more sustainable in the long run. But hey, there's nothing wrong with doing both strategically—paying down some debt while occasionally requesting credit line bumps to speed things up a bit. Just don't go wild with new credit limits (temptation is real, trust me 😅).
Good points there, especially about the psychological boost from paying down debt. I remember when I first bought my house, my credit utilization was pretty high from all the furniture and appliances I had to buy. At first, I tried just raising my limits to quickly lower the utilization percentage. It worked short-term, but honestly, it felt like a band-aid solution. The balances were still there, staring me down every month.
Eventually, I shifted gears and focused on aggressively paying down the debt instead. It took longer, sure, but it felt way more satisfying seeing those balances actually disappear. Plus, when I refinanced my mortgage later on, the lender specifically mentioned how good it looked that I'd steadily reduced my debt over time.
So yeah, raising limits can help in a pinch, but tackling the debt head-on is definitely the smarter long-term play. Just gotta resist the urge to celebrate your shrinking balances by splurging on something new... easier said than done sometimes, haha.
