05 Mar 2022

When Is The Best Time To Pay Off My Credit Card Bill?

While many people think that the due date is the only time they can pay off their credit cards, this is actually a mistake. You can choose to pay your bill off early in the month or make multiple payments throughout the month.

At the very least, it’s important to pay your credit card minimum by the due date each month, and ideally best to pay the statement balance to avoid interest fees. However, there are many cases where you can do it yourself if you want to pay it off earlier and get it over with.


Why Paying Your Credit Card Bill Early Might Be a Good Idea

The due date on your credit card bill is there to say that the billing cycle has ended and it’s time for you to pay. Due dates are not necessarily the times when the credit card issuer will report your balance to the credit bureaus. For this reason alone, it may make sense to pay your card off as early as possible.

Remember, your credit utilization ratio has a major impact on your credit score.

The credit utilization ratio is the amount you owe in relation to your available credit.

For example, let’s say you have a credit card with a $10,000 limit, yet you have an outstanding balance of $5,000 on it. In this case, your credit utilization ratio for this card would be 50%. Your utilization ratio has a large influence on your overall credit score.

It’s a good idea to keep your utilization ratio as low as you possibly can. A ratio any higher than 30% could end up hurting your credit score, which is why it’s so important to keep it below that threshold. Because of this, paying off your credit card before the due date could be beneficial.

The majority of credit card issues report balances to the credit bureaus on a single day every month, whether or not it is your due date. Your due date might be the 20th of each month, though the credit card issuer reports the balances on the 15th.

If you still had that 50% utilization ratio by the time the 15th rolled around, it could hurt your score.

Beyond that, paying off your credit card early could reduce your interest. Remember, if you pay your statement balance in full each round of the billing cycle, you won’t get charged interest.


Final Thoughts – Getting On Track With Your Credit Cards

Having a credit card requires responsibility, especially if your goal is to boost your credit. Of course, there are many other ways to boost your credit beyond traditional cards such is the case with authorized user tradelines.

Our goal here at Boost Credit 101 is to provide our customers and clients with the necessary knowledge and information so that they can make the most out of their tradeline purchases. If you are ready to begin your journey to great credit, we can help.

Make sure to get in contact with us if you have any further questions!