Question: What Order Should I Pay Off My Credit Cards?
If you only have one credit card, there's no question of the order that you'll pay off your credit cards. But, when you have multiple credit cards, it's better to focus on paying off one credit card at a time rather than spreading your payments over all your credit cards. Even though you put most of your effort into paying off one credit card, you should continue to make minimum payments on all your other credit cards.
Answer: There are two basic ways to pay off credit cards. First, by paying off the highest interest rate balance first, followed by the next highest interest rate, and so on. Second, by paying the lowest balance first, followed by the next lowest balance, and so on. Paying off the highest interest rate balance first will take less time and save money on finance charges.
Depending on your credit cards, there may be some exceptions. For example, if you've opted out of an interest rate increase and your credit card will be closing soon, you should pay off the balance quickly to keep from hurting your credit score.
