Pay off your credit card in full as soon as you can.
Paying off a card that charges you 21% interest is the equivalent of earning 21% on your money. That’s an incredible deal.
Check your credit score, and pay your bills automatically.
Lenders look at credit scores to evaluate you as a customer. The average score is around 700, but aim for 760 or higher to get the lowest interest rates on car loans and mortgages, which can save you tens of thousands of dollars! You can get a free credit score from your bank or credit card company. And remember: The number one factor that boosts your score is paying bills on time. Sign up for automatic bill pay so you won’t miss any due dates.
Build your emergency savings in a high-yield bank savings account.
After you’ve contributed to your TDA retirement savings and paid off your high-interest debt, you’ll want to build up an emergency savings fund that will cover three to six months of your living expenses. Find an FDIC-insured high-yield savings account to stash your cash. (Online-only bank Ally recently advertised one paying 3.30%; Apple Bank of New York has another paying 3.03%.)