Which credit card should you pay off first? 5 tips to help you decide

The average American has about four active credit cards. If you’re feeling the burden of a higher cost of living — from higher gas prices to rising grocery costs — it can be tough to make sure that each of your credit cards is getting paid on time.

While the goal should always be to pay the full statement balance, that’s not always possible. The May 2025 Economic Well-Being of U.S. Households report found that, in 2024, 46% of credit card owners said they carried a balance at least once during the prior 12 months.

CNBC Select offers some tips on how to manage credit card debt and things to consider when prioritizing your debt repayment.

Even if you’re not able to pay off the full statement balance on all of your credit cards, you should aim to continue paying the minimum each card requires. This won’t eliminate your debt, but it will keep your account in good standing and help you avoid late payment fees. Making these minimum payments also keeps your credit score intact, as payment history accounts for 35% of your FICO Score.

For many credit cards, the required minimum payment is generally the higher of either a flat fee (around $25 to $40) or 1% to 3% of your statement balance, whichever is greater. Don’t expect paying the minimum to affect your debt in any meaningful way; you’re really just treading water to avoid additional fees or negative hits to your credit.

Depending on your standing with your credit card issuers, you can call and request either a temporary or permanent APR reduction to make your debt repayment more manageable. While neither is guaranteed, a temporary reduction is more likely. You may have better success if this is your first time requesting help or if you’ve been a customer for a longer period of time.

If you happen to miss a credit card payment, some banks and issuers might be willing to waive the late payment fee, especially if it’s the first time you’ve missed one. Discover credit cards, for example, generally waive your first late payment fee and don’t charge a penalty APR.

If you’re paying down multiple debts, it’s often recommended to tackle the card with the highest APR first, since it’s costing you the most money overall. This is known as the avalanche method, and it’s meant to save you the most in interest — but it might not work for everyone.

If you enjoy a quick win, you could also consider trying the snowball method. Instead of paying off the highest APR first, you focus on the lowest. This can help you quickly eliminate one source of debt (even if it isn’t the most expensive debt), which can be a great early motivator.

One consideration when choosing a debt payoff method is how much of your credit you’re using. The general rule of thumb is to use under 30% of your available credit. So, if you have three credit cards, each with a $10,000 limit, you’ll want to keep your total spending under $9,000 across all cards. Your credit utilization ratio accounts for 30% of your FICO Score, so it may make sense to focus on the card with the highest individual ratio first.

While this might not be the most direct way of reducing your debt, it could save you from tanking your credit score in the meantime.

Once you’ve taken inventory of all your cards and their debt levels, and determined the order in which you want to pay them off, decide how much you can realistically put aside each month toward payoff.

When determining your monthly payments, consider using a free online debt repayment calculator to explore potential contributions and how many months it will take to pay off your debt. Doing so can also help you get a better idea of how much interest you’ll pay.

Also consider setting a “debt-free” date to look forward to — and make sure you don’t fall back into bad habits. The personal finance app You Need a Budget (YNAB) can help you organize your payoff plan and uncover extra money to put toward your monthly payments. The app also offers educational content around debt management, including a debt video course that helps you create a customized payoff plan.

Debt relief is a bit of a broad term, and it can encompass several options. One fairly common option to consider is a 0% APR card, which you can use to essentially freeze interest payments and pay down debt directly.

If you’re struggling with substantial debt, you’ll likely want a card with a long intro APR period. With the U.S. Bank Shield™ Visa® Card, you’ll get two full years (24 billing cycles) of a 0% intro APR on purchases and eligible balance transfers, followed by a variable APR of 16.99% to 27.99%. Balance transfers do need to be completed within 60 days of account opening to qualify for the intro APR, and there is a 5% fee for each transfer, with a $5 minimum.

While a 0% APR card can help you pause your interest payments, it needs to be paired with the consistency of your payments to truly help you get out of debt.

If you have a lower credit score, you may consider consolidating your credit card debt with a personal loan. It’s often easier to get approved for personal loans, and they typically feature lower interest rates than credit cards. Plus, you won’t have to track multiple different payment dates and amounts, just the loan.

Avant is a great solution for borrowers with lower credit scores. According to Avant’s website, most of its applicants have credit scores in the 600 to 700 range. While your loan will be tailored to your specific situation, amounts range from $2,000 to $35,000, with term lengths ranging from 24 to 60 months.

At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every credit card article is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of credit products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.

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