Law Offices of Edgar P. Lombera

Credit Tip: Focus on your Revolving Debts FIRST! Not all debts are created equal. Revolving debt in the form of credit cards impacts your credit score greatly because agencies believe credit card debt is a more reliable indicator of risk as a borrower than installment debt. In addition, revolving debts typically have higher interest rates and your minimum payment is based on the amount you owe. (Department store credit cards are one example.) Paying down your revolving debts first usually means paying less in interest.