The invention provides various systems and methods for actively optimizing a credit score and reducing debt. The method includes receiving a credit report including credit accounts, balances, interest rates, and rate types for the credit accounts. The method further receives bank account and payroll information, as well as fixed and variable expense information. The method then generates a financial report based on the received information. Based on the financial report, the method calculates a payment amount, and determines available unassigned income. An allocation of the available income for debt reduction and credit score optimization is received, and the method dynamically allocates the funds to pay the credit accounts, the fixed expenses, and variable expenses such that the customer's debt is reduced and the customer's credit score is improved.