Ask Terry Questions Pay bills from inheritance to improve Credit Score?

Pay bills from inheritance to improve Credit Score?

By Terry Savage on May 18, 2019 | Credit/Debt

Would it be wise to pay off all credit card debt which is quite high with inheiritance money? Will that help raise our score?

Terry Says

Absolutely.  And that’s the first thing you should do — immediately —  pay down all your debt, with the exception of your mortgage.  Then make sure you don’t run up the debt again, by getting those cards out of the way of temptation.  If you want to close one or two, make sure you keep the oldest card, as it demonstrates a long-time credit history.

My next suggestion is to make a spending plan for the future, so you can save this money for your retirement.  I don’t know how old you are, but if you’re working and earning money, consider setting up a Roth IRA at Fidelity or Vanguard — and making your 2019 contribution now while you have the extra money!



a personal
finance question