Ashley Effinger Heck yeah, pay that credit card bill early and watch your credit score skyrocket!
The worst kind of payments are…
Late payments are the worst, so make sure you’re always on top of them.
But here’s the surprise twist: paying your bill before the due date or making extra payments each month can actually improve your credit score. Say what?!
Contrary to popular belief,
Carrying a balance on your card doesn’t do you any favors. Paying off your balance in full won’t harm your credit score, and it saves you from having to pay those high interest charges. Plus, keeping your balance under 30% of your credit limit is key. If you go over that, your credit score takes a nosedive and nobody wants that.
So here’s the scoop on paying early:
If you make a payment before your statement closing date, you can lower your credit utilization percentage.
That’s the fancy term for how much of your available credit you’re actually using. And when your utilization is low, your credit score gets a big boost. It’s like a workout for your credit.
But wait, there’s more!
If your card issuer calculates your interest charges using the “adjusted-balance method,” paying right before your statement closing date can actually save you some cold hard cash. Cha-ching!
What does the law say about credit card payment due dates?
Now, just a heads up. When it comes to payment due dates, things can get a little wonky.
The law says your bill is due on the same date each month, but the number of days in each month varies. So you’ll want to check your cardholder agreement or do some simple math to figure out when your statement closing date is.
And remember, if you can swing it, pay off your balance in full every month. That way, you’re guaranteed a clean slate when it comes to the credit bureaus. No outstanding balances to report means better credit scores.
Here’s the deal: “early” payments can actually be “extra” payments. Let me break it down for you.
If you make a payment before your statement closing date, it applies to that billing cycle.
And guess what? If it clears your entire balance, great job!
But if you still have a balance leftover, you’ll need to make a minimum payment by the due date on your next statement to avoid any late fees.
So, if you’re the kind of person who always carries a credit card balance month after month (no judgment here), it might be better to think of pre-closing date payments as extra payments instead of early ones.
Trust me, it’s an old trick that works.
Making multiple payments to your credit card can help you keep your debts in check and boost your credit scores.
When is the worst time of the month to pay my credit card bill?
Now, let’s discuss timing.
The absolute worst time to pay your credit card bill is after it’s due.
Don’t do it, folks.
That can seriously tank your credit score. But paying your bill in full before your statement closes, or making an extra payment if you know you’ll be carrying a balance into the next month, can do wonders.
It’ll bring down your credit utilization (that’s a fancy way of saying how much of your available credit you’re using) and save you some finance charges.
The bottom line
So don’t wait around! Pay that credit card bill early reap the rewards of a higher credit score and some extra cash in your pocket and watch your credit score soar. It’s like leveling up in the game of life.
