The best time to pay a credit card bill is a few days before the due date, which is listed on the monthly statement. Paying at least the minimum amount required by the due date keeps the account in good standing and is the key to building a good or excellent credit score. That’s true for everyone, but some people might want to take things a step further, particularly cardholders carrying balances from month to month and people with high credit utilization.
When to Pay a Credit Card’s Bill
1. If you are carrying a balance from month to month:
If you have a credit card balance that you carry from month to month, it’s best to pay that credit card’s bill as soon as the monthly account statement becomes available. This will save you money on interest. Paying the card’s monthly bill in full for two consecutive months will also reduce your interest charges by reinstituting your account’s grace period. Instead of purchases beginning to accrue daily interest charges right after you make them, you will have a window between when your monthly statement becomes available and when your bill is due to pay with no interest.
2. If your balance is up to 30% of your credit limit and you pay in full monthly:
You should simply pay your bill by the due date listed on your monthly statement. This will help you avoid credit score damage, and you will also avoid interest charges if you pay the full balance every month.
3. If your balance is more than 30% of your credit limit:
If the balance listed on your monthly credit card statements consistently equals more than 30% of the card’s credit limit, consider paying your bill multiple times per month. Paying once in the middle of the month and again before the due date will reduce the balance listed on your statement. That, in turn, will lower your credit utilization, which should help your credit score.
Here’s a quick example. Say you have a credit card with a limit of $1,000 and you charge $500 to it, using up 50% of your credit. Then, you make a payment of $300 before the billing period closes and your statement is generated. That brings your statement balance to $200 and your utilization to 20%. Paying off the final $200 before the due date keeps your account in good standing.
Tips for Not Missing a Credit Card Payment
It’s a good idea to set up automatic payments with your credit card issuer so you don’t have to worry about when to pay your credit card bill. Doing so will automatically make a payment from a linked bank account every month on the due date, or a day of your choice before that. You can’t be marked late unless your account has insufficient funds. And even with automatic payments set up, you can still make additional payments any time you want.
For more advice to help you avoid the cost and aggravation associated with missed payments, you can take a look at WalletHub’s tips for never missing a due date.
This answer was first published on 01/21/19 and it was last updated on 03/05/23. For the most current information about a financial product, you should always check and confirm accuracy with the offering financial institution. Editorial and user-generated content is not provided, reviewed or endorsed by any company.
FAQs
You can avoid paying interest charges on most credit cards by paying the full balance before the payment due date. What is the 15/3 rule? The 15/3 rule suggests paying part of your credit card bill 15 days before the due date and paying the remainder of your balance three days before the due date.
When should I pay my credit card for best score? ›
Consistently paying off your credit card on time every month is one step toward improving your credit scores. However, credit scores are calculated at different times, so if your score is calculated on a day you have a high balance, this could affect your score even if you pay off the balance in full the next day.
What is the best time to pay credit card bill? ›
Essentially, this rule states you should make half of your credit card payment 15 days before your due date, then make the other half of your payment three days before your bill is due. This strategy is designed to boost your credit by increasing the number of on-time payments reported to the credit bureaus.
What is the 15 3 rule for credit cards? ›
The 15/3 rule, a trending credit card repayment method, suggests paying your credit card bill in two payments—both 15 days and 3 days before your payment due date. Proponents say it helps raise credit scores more quickly, but there's no real proof. Building credit takes time and effort.
When should I pay my credit card bill to increase credit score? ›
Credit card companies report your balance to the credit bureaus every month, typically at the end of each billing cycle. If you make your payment shortly before your statement date, it could help reduce your credit utilization, which can help you increase your credit score or maintain good credit.
How can I raise my credit score 200 points in 30 days? ›
How to Raise Your Credit Score by 200 Points
- Get More Credit Accounts.
- Pay Down High Credit Card Balances.
- Always Make On-Time Payments.
- Keep the Accounts that You Already Have.
- Dispute Incorrect Items on Your Credit Report.
Paying your credit card bill early is not intrinsically good or bad, but it can help you avoid negative habits such as high credit utilization and late payments. Paying your credit card early won't directly influence your credit score, but it can help in creating good financial habits down the line.
Does it matter how many times I pay my credit card in a month? ›
Paying your balance more than once per month makes it more likely that you'll have a lower credit utilization rate when the bureaus receive your information. And paying multiple times can also help you keep track of your spending and cut back on any overspending before you fall into debt.
When should I pay my credit card to avoid interest? ›
Pay your credit card bill in full every month
If you pay off every bill completely, you won't carry a balance into the next month, meaning you won't owe any credit card interest at all.
Is it better to pay credit card daily? ›
Reducing the interest you pay
The lower you can keep the balance day by day, the less interest you pay. That's true even if you pay the same dollar amount over the month. So paying $200 three times during the month results in less interest charged than paying $600 once a month.
In fact, Equifax reports that credit card issuers only report to the credit bureaus once per month, usually on the billing cycle date. Ultimately, this means making multiple payments per month won't help you demonstrate a more positive payment history than making just one payment per month.
What is the double payment trick on credit cards? ›
With the 15/3 credit card payment method, you make two payments each statement period. You pay half of your credit card statement balance 15 days before the due date, and then make another payment three days before the due date on your statement.
What is the golden rule of credit cards? ›
The golden rule of credit card use is to pay your balances in full each month. “My best advice is to use a credit card like a debit card — paying in full to avoid interest but taking advantage of credit cards' superior rewards programs and buyer protections,” says Rossman.
Is a credit score of 650 good? ›
As someone with a 650 credit score, you are firmly in the “fair” territory of credit. You can usually qualify for financial products like a mortgage or car loan, but you will likely pay higher interest rates than someone with a better credit score. The "good" credit range starts at 690.
How can I raise my credit score 100 points in 30 days? ›
For most people, increasing a credit score by 100 points in a month isn't going to happen. But if you pay your bills on time, eliminate your consumer debt, don't run large balances on your cards and maintain a mix of both consumer and secured borrowing, an increase in your credit could happen within months.
Why is my credit score going down when I pay on time? ›
It's possible that you could see your credit scores drop after fulfilling your payment obligations on a loan or credit card debt. Paying off debt might lower your credit scores if removing the debt affects certain factors like your credit mix, the length of your credit history or your credit utilization ratio.
Is it better to pay credit card in full for credit score? ›
If you regularly use your credit card to make purchases but repay it in full, your credit score will most likely be better than if you carry the balance month to month.
Why did my credit score drop 40 points after paying off debt? ›
It's possible that you could see your credit scores drop after fulfilling your payment obligations on a loan or credit card debt. Paying off debt might lower your credit scores if removing the debt affects certain factors like your credit mix, the length of your credit history or your credit utilization ratio.
How to pay off credit card to best increase your credit score? ›
You want to make sure your balance is low when the card issuer reports it to the credit bureaus, because that's what is used in calculating your score. A simple way to do that is to pay down the balance before the billing cycle ends or to pay several times throughout the month to always keep your balance low.
How much will paying off credit cards improve score? ›
If you're close to maxing out your credit cards, your credit score could jump 10 points or more when you pay off credit card balances completely. If you haven't used most of your available credit, you might only gain a few points when you pay off credit card debt. Yes, even if you pay off the cards entirely.
