 TITLE: Debt-Free Living: How to Get Out of Debt for Good CONTENT: Rebuild Your Credit After Getting Out of Debt\n---------------------------------------------\nWhen you're working to bounce back from a poor credit score, all the positive credit habits you've been building as you get rid of debt will pay off.\nFor instance, paying down credit cards will lead to lower credit utilization, which accounts for 30% of your FICO® Score☉ . Making all your debt payments on time—which will be easier when you stick to a budget and limit the amount of new debt you take on—is an even more important step to take. That's because payment history is the biggest factor in your score.\nIt's also smart to keep old credit card accounts open, as long as they don't come with expensive annual fees, so you don't inadvertently shorten your average account age or lower the amount of overall credit available to you. Or take steps to repair your own credit by getting advice from a nonprofit credit counselor and regularly checking your credit report for errors that might affect your score.\nRebuilding credit is not a speedy process. Late and missed payments stay on your credit report for seven years, though their effect on your score will decrease over time. That means it's up to you to stay the course and keep the good habits going, even if you don't see an immediate positive impact. END