Man pays his credit card bill on a computer with his son.

When Should You Pay Your Credit Card Bill?

7 min read

Last Updated: June 11, 2025

Table of contents

Key Takeaways

The best time to pay your credit card bill is by the due date—but paying earlier may have some benefits.
A late or missed credit card payment can hurt your credit score and cause you to accumulate interest.
You can pay the minimum amount due, statement balance, current balance, or another amount.

The best time to pay your credit card bill is on or before the payment due date. If you make your monthly payment on time, you’ll establish a solid payment history, which may improve your credit score. On-time payments won’t incur a late fee or interest charges, either.

There’s no downside to paying your credit card bill on time. But, if you’re looking for ways to improve your credit score or save on interest, paying your bill earlier may be better.

Why you may want to pay your credit card bill early

There are a few reasons to consider making payments on your credit card bill before the due date.

Paying early helps you save on interest charges

If you pay your credit card bill in full every month, you won’t have to pay any interest. But if you carry a balance into the next month, that balance will start accruing interest and you’ll end up paying more than what you originally charged on your card.

If you’re paying interest on a balance, making an early payment may help reduce the amount of interest you’ll pay over time.

Many credit card issuers compound interest daily. That means every day you wait to pay your balance could result in more interest. Make a credit card payment as soon as possible to reduce your interest payments.

Did you know?

A balance transfer could help you save on credit card interest. Balance transfer offers let you move debt to a credit card with a lower interest rate. This lets you pay down your debt without accruing more interest.

Learn More

Paying early may help keep your credit utilization rate low

Your credit utilization ratio is the percentage of your total available credit that you’re using at any given time. If you have a credit limit of $10,000 and you currently owe $3,500, your credit utilization ratio is 35%.

Credit utilization impacts your credit score. If you want to build good credit, keeping your utilization low may help.

How does paying your credit card bill early help your credit utilization ratio? The answer lies in your card issuer’s reporting date, which we’ll discuss below.

The short story is that your credit card company reports your balance to credit bureaus every month. Those bureaus use that information to calculate your credit score. If you pay your bill early, before the issuer reports your balance, your credit report may show a lower utilization ratio. That lower ratio could improve your credit score.

When is your balance reported to credit bureaus?

Your credit card issuer likely reports your balance to one or more credit bureaus on a set “reporting date” each billing cycle. The reporting date is typically around your statement date.

Your credit card statement includes your statement balance, due date, and account number, but doesn’t include the reporting date. Credit card issuers may have different reporting dates. Each credit bureau compiles your activity into a credit report, which is used to calculate your credit score.

If you’re carrying credit card debt or you have a high utilization ratio, making a payment before the reporting date could have a positive effect on your credit score.

When to pay a credit card bill to avoid interest

To avoid interest, pay the entire statement balance on your credit card bill on or before the due date. If you miss a credit card payment or carry a balance into the next month, you’ll accrue interest charges on your balance.

The larger your balance, the more you’ll pay in interest. So, if you can’t pay the entire balance, pay as much as you can to minimize interest. Paying down as much of the balance as you can save you money in the long run.

How much should you pay on your credit card each month?

The amount you pay on your monthly credit card bill depends on your personal situation, so it’s important to understand your payment options.

Paying the minimum amount due

Every billing cycle, your credit card issuer sets a minimum payment you must pay to keep your account in good standing. Your minimum payment will be noted on your monthly statement. If you pay less than the minimum, you risk incurring a late payment fee or a penalty interest charge. Late payments are also reported to credit bureaus and could hurt your credit score.

Only making the minimum payment means you’ll carry a balance into the next month. Carrying a balance will result in interest charges and can also lead to credit card debt.

If you miss a payment, it’s still a good idea to make a payment as soon as possible to minimize interest. And if your payment is more than 30 days late, your issuer may mark your account as delinquent. If your account is delinquent, your card issuer may charge you extra fees or suspend your account if you haven’t made a payment.

If you struggle to make the minimum payment on your cards, you may want to consider debt relief or credit counseling.

Paying the statement balance

Your credit card statement balance is the total amount you spent on the card during the previous billing cycle plus any outstanding balance from the previous months. Paying the statement balance covers any balance you had at the beginning of your current billing cycle.

By paying the entire statement balance each month, you’ll avoid interest charges and credit card debt. You’ll also build a solid payment history, which is part of a good credit score. This is why it’s good to use your card responsibly and pay off your statement balance every month. Setting up online bill pay or scheduling a future payment can help make sure you pay on time.

Paying the current balance

Your current balance is the most up-to-date total of your credit card balance. If you use your credit card frequently, your current balance may differ from your statement balance.

That’s because your current balance reflects purchases recently posted to your account. If you’ve used the card since the end of the last billing cycle, the current balance includes those charges.

You may be able to lower your credit utilization ratio by paying the current balance instead of the statement balance.

Paying another amount

If your card issuer allows it, you can pay more than the minimum amount due but less than the statement balance. Or make multiple payments over the course of the month.

This lets you make payments that fit your current financial situation. However, it’s still important to budget and keep track of your due date to avoid a late payment or getting charged interest.

The bottom line

No matter how much you choose to pay on your credit card, making at least the minimum payment by the due date can help keep your account in good standing and help you maintain a good payment history. By paying your balance in full, you can avoid interest charges.

Setting up an automatic payment on your account can help make sure that you pay on time. Consider using your online banking portal to connect your bank account to your credit card account to make the process as easy as possible.

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