Winning Number: 38

That's how many points, on average, credit scores jumped for Americans who used a personal loan to pay off $5,000 or more of credit card debt, according to a recent LendingTree study. When you pay down credit card debt, you're using less of the revolving credit available to you. That makes the credit scoring algorithms happy, which is why your score zooms upward. And it's not just for big balances — paying off between $1,000 and $5,000 of debt still resulted in a 17-point credit score boost.

Why it matters

"A higher credit score is a big, big deal because there are few things in life that are more expensive than crummy credit. It can cost you thousands of dollars in the form of higher interest rates on loans, higher insurance premiums and more. It can even keep you from getting that new apartment you're hoping to rent."

—Matt Schulz, chief credit analyst at LendingTree

The bottom line

Paying down revolving — aka credit card — debt can boost your credit score and help you save beaucoup bucks on major loans (say for a car or a home) you may need in the future. Another upside? You'll lock in a single, fixed monthly payment and pay less in interest overall, thanks to a lower interest rate than the one on your credit card.

Winning Money Move

Take that first step to freeing yourself from debt. If you're unsure where to start, check out our guide on strategies for whittling your debt down to nothing.

Top tips:

Extra credit

Not ready to transfer your credit card debt to a personal loan? You can still save some cash by calling your credit card issuer to ask for a lower interest rate. It works — 70% of cardholders who asked their issuer for a reduced rate in the past year scored a better rate. Cha-ching!

Fight Inflation — With Your Credit Cards

It's no secret that inflation, which reached a whopping 9.1% in June, is silently whacking Americans' budgets. It causes the cost of everything from gas to groceries to skyrocket — while the purchasing power of your money takes a nosedive. In fact, 83% of Americans say that inflation is negatively impacting their budgets, according to a LendingTree survey.

While we can't change the prices at the gas pump, we can help put some cash back in your wallet — where it belongs. Our top credit card tips for inflationary times:

We'll be back next month with more news and tips to help you reach your money goals.