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Choosing a loan or card, carrying a balance, and protecting the credit score that sets your rates. Borrow on better terms and pay off what you owe faster.
Federal student loan autopay takes a full percentage point off your rate through June 30, 2028, if you’re enrolled by December 31, 2026, and your loans are Direct Loans made after July 1, 2012. Turn it on with your loan servicer, then keep it on, since a payment pause or bounced payments can stop the discount.
Over 30 years, half a point off your mortgage rate can save more than a $10,000 price cut. The longer you’ll keep the loan, the more the rate matters, so negotiate it as hard as the price. Raise your credit score before you apply, get quotes from several lenders, and ask each one to beat the best offer.
Your home equity is wealth you can borrow against at a far lower rate than a credit card charges, because the house secures the loan. That’s also the danger, since falling behind can cost you the home. Tap it only for costs that outlast the loan, and keep at least 20% of the home’s value unborrowed.
A mortgage pre-approval shows how much a lender is willing to lend you, and sellers often won’t accept an offer without one. Line up pre-approvals from two or three lenders in the weeks before you tour homes, so you can make an offer the day you find the right house.
Before house hunting, divide your monthly debt payments, including the mortgage you want, by your gross monthly income. Lenders judge you by that debt-to-income ratio. It counts payments, not balances, so paying off a small loan with over 10 payments left lowers it more than putting that money toward a big one.
Refinancing federal student loans with a private lender swaps them for a private loan, and the switch can’t be reversed. You give up income-driven payments, public service forgiveness, federal options to pause payments, and discharge if you die or become totally and permanently disabled. Refinance only if the rate savings beat all of that.
To get the full savings from a balance transfer card, clear the balance before the 0% rate ends. Divide what you move, plus the transfer fee, by the promo months and set autopay for that amount. Keep new purchases off the card, never pay late, and don’t let the old card fill back up.
Every extra dollar you put toward a debt saves interest at that debt’s rate, however big or small the balance. That’s why the debt avalanche, which targets your highest rate first, costs less than the debt snowball, which starts with the smallest balance. Pay every minimum, then send extra dollars to the debt with the highest rate you’ll actually pay.
Paying credit card interest never raises your credit score. Scores see the balance on your statement and whether you paid on time, and newer ones count a balance you roll over against you. Use your card, then pay the full statement balance by the due date every month to build credit without paying interest.
Credit utilization, the share of your credit card limits you’re using, is one of the biggest factors in your credit score. Keep it under 30% on every card and overall, and aim for under 10%. Because issuers usually report your statement balance, pay your cards down a few days before each statement closes.
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