Explore different ways to pay down debt
We have options to help make your payments more manageable and may help to pay off your debt faster.
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Repaying your debt can often feel challenging. That’s why making a plan to manage your payments and balances can help. Take a look at these tips and discover some small steps you can take today to make managing your debt easier.
Payment history makes up 35% of your credit score. If you’ve missed a payment, pay as soon possible — it makes a difference. Credit reports will track if you are 30, 60, or 90 days late on payments.
Make sure you stay on top of your credit activity. Check all three national credit bureaus annually to verify there are no errors. Don’t worry, requesting your reports won’t affect your credit score.
Always try to pay more than what’s due. This helps to pay down debt faster and may improve your credit score.
Being close to or maxing out your credit limits may negatively impact your credit score. It’s a good idea to keep your balance on revolving lines under 30% of your limit.
Apply for and open new credit accounts only if you need them. Having too many accounts with balances can lower your credit score and may become difficult to manage.
See if you qualify for lower rates on your current debts, especially if your credit has improved or if interest rates have dropped since you originally applied.
Closing credit card accounts may lower your available credit and could hurt your credit score in the short term. Consider keeping accounts open if they have a good payment history and a low or zero balance.
Having funds set aside in a savings account can help you to avoid using credit cards for unexpected expenses.
Only one qualifying relationship interest rate discount may be applied per application. All loans are subject to qualification. To learn which checking accounts qualify, please consult a Wells Fargo banker.
DTI Ratio: Less than 35%
Relative to your income, your debt is at a manageable level. You most likely have money left over for saving or spending after you’ve paid your bills. Lenders generally view a lower DTI as favorable.