Uploaded February 2026 | Updated September 2026, 2 weeks ago
Your credit score is a metric that describes what type of borrower you are. Credit scores help lenders determine whether individuals are creditworthy or undesirable candidates for a loan.
Here are three tips on ways to manage your debt more effectively:
1) Pay your credit cards on time and in full or pay as much as you can.
2) Avoid using too much of your available credit. High utilization signals that you’re close to maxing out your cards — and that can hurt your score.
3) Before you borrow, for example to buy a car, always calculate how much you can afford and how that purchase affects your budget.
Properly managing your debt will lead to a higher credit score, with impacts across your entire life.
For more, follow IFDM on LinkedIn: linkedin.com/showcase/stanford-initiative-for-financial-decision-making
Your credit score is a metric that describes what type of borrower you are. Credit scores help lenders determine whether individuals are creditworthy or undesirable candidates for a loan.
Here are three tips on ways to manage your debt more effectively:
1) Pay your credit cards on time and in full or pay as much as you can.
2) Avoid using too much of your available credit. High utilization signals that you’re close to maxing out your cards — and that can hurt your score.
3) Before you borrow, for example to buy a car, always calculate how much you can afford and how that purchase affects your budget.
Properly managing your debt will lead to a higher credit score, with impacts across your entire life.
For more, follow IFDM on LinkedIn: linkedin.com/showcase/stanford-initiative-for-financial-decision-making
