I have 5 credit cards and about 80% of my credit in use. I've saved some money and am wondering how to distribute it most wisely between the cards with various payments for the most effective way of raising my credit score.

Amy Miller

Start with paying off just one card first. Think which card you want to pay off first. You can choose the card with the highest debt or the card with the highest interest. But do not forget about other cards: continue making minimum payments on other credit accounts. If you can make more than a minimum payment, pay more. That will bring only positive impact on your credit history and will help you reduce debt faster.

Paying off one card will lower the percent of credit in utilization. Thus you can increase your credit score significantly.

Contact your creditors and ask for lower interest rates. If you make payments on time and you are a long-term customer, the creditors may reduce rates.

Monitor your credit reports while paying off your accounts. See how your actions influence your credit score and if you see your score climbing up, just continue doing what you do.