When financial anxiety spikes, the impulse to aggressively pay off a car loan or mortgage seems like a bulletproof step toward financial freedom, but credit repair expert and influencer Micah Smith warns that suddenly paying off those loans can actually backfire and drag down your credit score.

Instead, turning around a credit score — sometimes taking a profile from the 400s into the 700s in just one month — comes down to precise timing, strategic balance targets and leveraging forgotten rules hidden inside consumer credit law.

“It really takes a deep understanding of how credit works, but 400s to 700s is very realistic,” Smith told Fox News Digital.

“The biggest thing we look at right away is, how is the positive credit being used? Is there any positive credit there? Then we take a look at the negative items. What kind of negative items are there?” she continued. “You really want to assess those two things… and are there any quick wins available on the credit report?”

MORE AMERICANS ARE RELYING ON CREDIT CARDS TO BUY GROCERIES, NEW STUDY FINDS

Smith has previously broken down how credit utilization — or amounts owed — makes up 30% of a standard FICO credit score calculation, while payment history accounts for 35%. But to see a quick improvement in your credit score, it’s important to note that credit card issuers report account balances to the credit bureaus once per month on the account’s statement closing date, not the payment due date.

A shopper pays for a purchase using a credit card in San Francisco, California, on Thursday, July 16, 2026. (Getty Images)

The credit expert emphasized that maintaining an overall utilization ratio below 10%, and ideally under 7%, signals low credit risk and generates maximum point gains in scoring models.

“Most people don’t realize how much their credit card usage is impacting their credit score,” she said. “You can call your credit card company and say, ‘When is my closing date?’ And… you wanna get your balance down to 6% utilization or less. So if you have a $1,000 credit card, you want that balance to be $60.”

“The other thing you can do is, if you’re eligible, you actually also can ask for a credit limit increase to widen that gap. So that way the balanced limit ratio, you can widen it by asking for a credit limit increases. If it’s an inquiry, it’s not that big of a deal. It’s two to five points. It’s nominal. But sometimes, that can actually increase a person’s credit score by not having to part ways with a ton of money.”

Smith also cited a June 2026 LendingTree survey, which found that 84% of credit cardholders who requested an interest rate (APR) reduction were successful, yet only 23% of cardholders actually asked for one.

“You can help yourself by picking up the phone, making a phone call, and you can actually pay down your debt a lot faster just by simply asking for a reduction in the interest,” she noted.

“Half the money that you win or lose in life will be done at the negotiation table. So I would take a look at all of your bills, see what can be negotiated. People underestimate — rent can be negotiated, utilities can be negotiated, credit cards can be negotiated.”

“It’s so important to know where to apply the appropriate funds. Because if you apply it in the wrong places, thinking it’s gonna drive the credit score upwards, you’re going to find yourself very, very disappointed.”

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There are times, however, when paying off debt or loans can backfire, according to Smith. Installment loans, including mortgages, auto loans and student loans, differ from revolving credit such as credit cards. When an installment loan is paid off, the account status shifts to “closed,” which can reduce credit mix diversity — worth about 10% of a FICO score — and pause active positive payment reporting.

“The most common mistakes that we see in credit today that backfire badly would blow your mind… They will actually have enough money to pay off student loans in full. They’ll have enough to pay off their cars in full, they might have enough money to pay off their mortgage in full thinking that they’re going to drive their credit scores up. And actually, it takes the credit scores backwards,” she warned.

“When you pay off an installment loan, it’s closed. So that positive history, it stops calculating into the credit score. And so you actually end up suppressing the score,” Smith continued. “This is why it’s so important to know where to apply the appropriate funds because if you apply it in the wrong places, thinking it’s going to drive the credit score upwards, you’re going to find yourself very, very disappointed.”

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While securing a rapid score boost provides an immediate surge of confidence and momentum, Smith stresses that a 30-day triage plan is only the first step. To ensure quick credit wins turn into long-term financial security, the focus must shift from temporary fixes to automated systems.

“Short-term fixes, those are amazing. We’re so grateful when we get these really quick short-term fixes, but it ultimately hasn’t addressed the underlying problem,” she said. “People need to be reminded more than they’re taught… It’s not because you understand credit so well, it’s because you don’t and you haven’t built the habits yet. And so we’re reinforcing those habits day after day, week after week, month after month. And so we’re constantly focused on reminding more than teaching, and I think that’s a very important principle that we all need to know.”

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The Newcastle firm is now the UK’s largest fifth largest housebuilder

One of the North East’s largest and best-known companies is celebrating its 80th anniversary.

Housebuilder Bellway, which operates around the country but has its base on the edge of Newcastle, began as a family firm in 1946 after being started by John Thomas Bell and his sons, John and Russell. It is now the UK’s fifth largest housebuilder by volume, building more than 10,000 homes last year.

Over its history it was heavily involved in the building of homes at Cramlington new town in the 1960s and expanded from its original North East base to have activities around the country. It was last year named large housebuilder of the year at The Housebuilder Awards and reported turnover of nearly £2.8bn.

The company has unveiled a refreshed brand to coincide with the anniversary and has appealed to owners of the homes it has built across the North East over the past 80 years to share their photographs to help chronicle how home designs have evolved over the last 80 years.

Chief executive Jason Honeyman said: “80 years is significant milestone in housebuilding. The industry has changed beyond recognition over the decades, and Bellway is committed to leading the way in innovation.

“We have invested in future-ready homes, including through innovative projects exploring low-carbon technologies at Energy House 2.0 at The University of Salford and Bellway’s Future Hub on-site training facility near Bolton. More recently we opened Home Space, our timber frame factory in Sutton in Ashfield, to support our commitment to build low-carbon homes, while our biodiversity policy exceeds Government requirements.

“We are proud that Bellway has remained true to its family-focused values, building connected communities while evolving our home designs to ensure our developments leave a positive legacy for people and the planet.”

Bellway is rolling out its new branding on digital channels and it will start to appear soon on developments in the North East, including DH1 in Durham; Monument Meadows in Pelton, County Durham; Hartford Edge in Cramlington; and Baydale Village, Darlington.

Marketing director Nicola Hughes added: “Everything we’ve done in evolving the Bellway brand starts with our customers. We want to make the journey simpler, more intuitive and more enjoyable at every stage – from the first online search to the moment they step through the door of their new home.”

Any homeowners who would like to share their photographs or memories of their Bellway home over 80 years in the North East are invited to email bellway.communications@bellway.co.uk. Pictures will be compiled to create a video celebrating the company’s anniversary.

The company had logged a net profit of Rs 520.13 crore in the April-June period a year ago, according to a regulatory filing from the bakery food company.

Revenue from the sale of products was up 9.47 per cent to Rs 4,964.37 crore in the June quarter. Revenue from operations was higher by 8.17 per cent to Rs 4,999.97 crore.

Commenting on the results, MD and CEO Rakshit Hargave said:“ The year started with West Asia conflict, leading to a steep increase in cost of fuel and shipment charges across our domestic & international businesses, which we have been able to navigate well during this quarter delivering a healthy volume and value growth.”

The company, facing competition from local rivals, said it is also gaining ground against competition, with profits growing ahead of topline in double digit over last year.

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“Most key categories saw positive sequential momentum as we exited the quarter with a mid-teens revenue growth, anchored by rapid scaling in e-commerce and robust growth in General Trade, aided by higher advertisement, influencers & promotion spends,” he said.
Moreover, its International Business also recovered sequentially as supply chain constraints began normalising in last part of the quarter, said Hargave.Total expenses were at Rs 4,262.24 crore, up 7.27 per cent in Q1/FY27.

Total income, which includes other income, was higher by 8.16 per cent to Rs 5,061.38 crore.

Over the outlook, the company said it will continue to closely monitor the evolving geopolitical situation in West Asia and crude oil volatility for potential impact on international operations and domestic input costs.

“We will remain agile in our actions to deliver healthy, sustainable revenue growth amid an improving domestic demand environment, driven by sharp innovation, strong brand investments, and disciplined margin management through accelerated cost efficiency initiatives,” he said.

Shares of Britannia Industries on Thursday settled at Rs 5,430 apiece on BSE, down 0.26 per cent from the previous close.

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More than 1,900 small high street businesses including mini-marts, vape shops and car washes are licensed to sponsor foreign workers under a specialist scheme intended for high-earning individuals despite visa rules being tightened, BBC Verify has found.

The Home Office scheme allows registered employers to recruit workers from overseas who meet a certain skill level. The rules were tightened in July 2025 to restrict the scheme mostly to graduate-level employees who would be earning at least £41,700.

But a year on from the rule change, BBC Verify has found more than 1,500 grocery and convenience stores, 150 taxi operators, 100 barber shops, and dozens of car washes and vape shops are still on the register and able to sponsor people to apply for visas.

More than 100 of those businesses were added to the skilled worker sponsorship list after the rules were tightened. Being on the register does not mean applications for individual visas would be approved.

Health Secretary Yvette Cooper said on Thursday the government will “make sure that the rules are being properly enforced because we cannot have employers getting round the rules or finding different ways to deviate”.

Home Secretary Shabana Mahmood ordered an urgent review into the presence of vape shops, barbers and car washes on the skilled worker sponsor register two months ago, following concerns over the “potential misuse of the system”. The Home Office said at the time that any businesses seeking to abuse the system would have their licences revoked.

A Home Office spokesperson said: “We have raised the skilled worker threshold and over 100 occupations are now ineligible for new skilled worker visas.”

It is understood some of the companies that joined the register after the rules changed may have applied before they took effect. Some companies may have also remained on the register because they were approved before July 2025 or are sponsoring workers who were already in the UK.

There are more than 120,000 businesses with licences to sponsor skilled workers. The skilled worker scheme was introduced after Brexit for employers to recruit workers after EU free movement ended. Smaller firms must pay a £611 fee to apply to join the register while larger businesses, such as those with more than 50 staff, pay a fee of £1,682. Anyone can be visited by the UK Visas and Immigration service during the application process.

Until July last year, someone being hired from abroad could qualify for sponsorship if their qualifications met an A-Level or equivalent standard, as long as they were paid at least £38,700 in most cases. Since the rule change, non-graduate professions, such as shop managers, are no longer eligible to apply. There are also higher English-language skill requirements that were introduced in January this year.

The Home Office said there were 68,067 skilled worker visas granted in the 12 months to March this year – 29,745 to main applicants and 38,322 to their dependants – which is 30% lower than the year before. IT professionals were the most common type of people to be granted the visas, followed by those people working in finance, while the fall in approvals was mostly attributed to those in food preparation and hospitality trades no longer qualifying for the scheme.