Pay down the card that's nearest its limit first
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Your credit score is not a judgment of you. It's a forecast built from behaviour, and behaviour can change.
The thing lenders consider most, after whether you pay on time, is how much of your available credit you're using. TransUnion tells South Africans to worry they’ve used up more than about 35% of their credit limit. A card sitting permanently near its limit signals financial strain, even when every payment is made.
So if you're paying off debt and you have a choice, put any extra money into the account closest to its limit.
That's usually your credit card, which is also where the interest is highest.
The thing lenders consider most, after whether you pay on time, is how much of your available credit you're using. TransUnion tells South Africans to worry they’ve used up more than about 35% of their credit limit. A card sitting permanently near its limit signals financial strain, even when every payment is made.
So if you're paying off debt and you have a choice, put any extra money into the account closest to its limit.
That's usually your credit card, which is also where the interest is highest.
