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The problem with carrying a credit card balance is that the longer you do, the more money you waste on interest. So the sooner you pay off your credit cards, the more money you can save.

That’s a pretty obvious benefit of paying off your credit cards as quickly as you can. But here are some less obvious perks that come with shedding credit card debt sooner.

1. You can boost your credit score

Your credit score is calculated based on multiple factors. These include whether you pay your debts on time and how long you’ve had loans in your name or credit card accounts open.

But one major factor that goes into calculating your credit score is your credit utilization ratio. That ratio measures the amount of revolving credit you’re using at once. And the lower that ratio is, the more your credit score can improve.

It makes sense to pay off your credit cards for this reason alone. If you’re able to bring your balances down, it’ll result in a lower credit utilization ratio. That, in turn, could give your credit score a nice lift, making it easier to get approved for new loans or credit cards when you apply. Also, the higher your credit score, the lower your interest rate is likely to be on your next loan.

2. You can increase your chances of getting approved for a mortgage

Mortgages are large loans, so lenders tend to set pretty strict standards for approving candidates. In addition to a decent credit score (620 is generally the minimum for a conventional home loan), to qualify for a mortgage, you need to have a reasonable debt-to-income ratio, or DTI. This measures the amount of debt you’re on the hook for each month relative to your income.

A DTI of 36% or less (meaning, you spend 36% of your income or less on debts) is usually ideal to qualify for a home loan through the best mortgage lenders. But many will accept a DTI of up to 43%.

Your credit card balances count toward your DTI. By reducing them, you also reduce your DTI, making it more likely that you’ll be approved to borrow for a home.

3. You can start investing

The less money you have to pay your credit card issuers in the form of interest, the more money you’ll have available to invest. So that’s another reason to shed your credit card debt sooner.

Say you’re able to pay off your balances in a year rather than three years, thereby saving your $2,000 in interest in the process. If you invest that $2,000 at a 10% return (which is in line with the S&P 500’s average performance) over 20 years, you could grow it into almost $13,500.

A good way to pay off credit card debt

Paying off credit card debt isn’t easy. But one tactic to consider is getting a side job temporarily and using your extra earnings to chip away at your balances.

At the same time, though, it pays to consolidate your balances so they’re easier to manage. And consolidating might also leave you with a lower interest rate to pay on your debt overall.

One option for consolidating credit card debt is to do a balance transfer. If you move your debts over to a single credit card with a 0% introductory interest rate, you get a break from racking up interest for a period of time. Click here for a list of the best balance transfer credit cards.

Another option is to take out a personal loan, use the proceeds to pay off your credit cards, and then repay that loan in monthly installments. You may lock in a much lower interest rate on a personal loan than what your credit cards are charging you, especially if you have good credit. Plus, your payments will also be locked in. Click here for a list of the best personal loan lenders.

The obvious upside of paying off your credit cards is not having to spend as much money on interest. But the benefits go way beyond that. So it pays to do what you can to shed your credit card debt as quickly as possible.

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