<prompt> Human: I have about 12K in savings accounts and 10K on two 0 credit cards with the 0 lasting till the end of 2013. With my current income Ill be able to pay off the credit cards before the 0 runs out, but Im concerned that carrying a credit card balance will damage my credit score. Currently around 720, used to be higherMy question to the group is should I reduce my savings to pay off my credit card, and then rebuild my savings, or follow my current plan to pay off the credit card debt over the next 12 months and leave the savings alone. On a psychological level I dont like having the credit card debt, but know that getting to 1.25 interest on the money is savings is at least some compensation for the potential reduction in the credit score.  <response>: Credit utilization only hurts your credit score while its high. As soon as its paid off, your credit score will bounce back immediately. It has no memory of historic utilization. So unless you need to apply for a loan before its paid off, theres no credit-related reason to pay it off early. 