Building Good Credit
Credit Rating versus Retirement Nest Egg
Paying down the balances on debt can increase your credit score (and save you a lot on interest payments, too). With that in mind, should you pay off balances before you invest for retirement? The answer is yes and no.
If your employer matches your contributions to a retirement account, make sure you save enough to take full advantage of that match. Otherwise you leave free money on the table.
Then focus on paying off high interest rate debt. Not only will you save money, you’ll also improve your credit score. The less you owe, the less you have to spend and the more likely you are to make other payments on time, which will also help improve your credit score.