Improve your credit score and qualify for better mortgage rates with proven debt reduction methods. Learn the two most effective strategies to eliminate debt and boost your FICO score.
Boost your FICO score by 50-100+ points
Qualify for lower mortgage interest rates
Increase your purchasing power
Your credit score directly impacts your mortgage approval and interest rate. Even a small improvement can save you thousands.
Choose your strategy, enter your debts, and get a personalized plan to become debt-free and boost your credit score.
Pay smallest balances first
Pay highest interest rates first
These scientifically-backed methods have helped millions eliminate debt and improve their credit scores. Choose the strategy that best fits your personality and financial situation.
Psychology-based approach
List all debts from smallest to largest balance
Make minimum payments on all debts
Put all extra money toward the smallest debt
Once paid off, move to the next smallest debt
Mathematics-based approach
List all debts from highest to lowest interest rate
Make minimum payments on all debts
Put all extra money toward the highest interest rate
Once paid off, target next highest rate
| Factor | Debt Snowball | Debt Avalanche |
|---|---|---|
| Order | Smallest to Largest Balance | Highest to Lowest Interest Rate |
| Motivation | High (Quick Wins) | Moderate |
| Interest Savings | Moderate | Maximum |
| Time to Debt-Free | Slightly Longer | Fastest |
| Best For | Behavior Change | Math Optimization |
Follow these proven strategies to maximize your debt reduction efforts and improve your FICO score faster.
Ideally below 10% for best scores. This factor accounts for 30% of your FICO score.
Example: If you have $10,000 in credit limits, keep balances below $1,000
Payment history is 35% of your score. Set up automatic payments for at least the minimum.
Pro Tip: Pay twice monthly to keep balances lower when reported
Length of credit history matters. Keep old cards open even if you don't use them.
Use old cards occasionally to keep them active
Check all three bureaus annually and dispute any errors immediately.
Free reports at annualcreditreport.com
Start debt reduction plan
Significant utilization improvement
Major debt elimination
Maximum credit score potential
Better credit scores qualify for the best mortgage rates, potentially saving you tens of thousands over the loan term.
Lower debt-to-income ratios allow you to qualify for larger loan amounts and afford more expensive homes.
Strong credit profiles get approved faster with fewer conditions and documentation requirements.
Excellent credit opens doors to low down payment programs and better loan terms.
That's over $120,000 in savings just from improving your credit score!
As your mortgage broker, I'll help you create a personalized debt reduction plan and guide you toward mortgage qualification. Let's work together to improve your credit and secure the best possible loan terms.
Review your credit report and identify improvement opportunities
Create a customized debt reduction plan that fits your budget
Set realistic goals and milestones for your home purchase
Get pre-approved when your credit reaches target scores
Don't let poor credit hold you back from homeownership. Let's create a plan to improve your score and secure the mortgage you deserve.