The Tension Between Two Goals

Traditional debt payoff advice focuses on minimizing interest and getting to $0 as fast as possible. That's financially optimal. But credit scoring doesn't care about what's optimal for you.

When Credit Score Matters More

If you're planning to apply for a mortgage, auto loan, or apartment in the next 6-12 months, your credit score matters a lot. A few points can mean thousands of dollars in interest over the life of a loan.

When Debt Freedom Wins

If you're not planning any major credit applications in the near future, don't overthink it. The mathematically optimal debt payoff approach will usually serve you well.

The Long View

Here's the truth: people who are debt-free generally have great credit scores. The best thing you can do for your long-term credit health is get out of debt and stay out.