Will Paying My Credit Card Bills Early Hurt My Credit Score?

The short answer: Paying your credit card bill early won’t hurt your credit score. In fact, it may help it. But the more important thing is to pay your bill on time and in full.

Here’s what you should know about paying early:

The Pros of Paying Credit Cards Early

While you’re billed once a month, there’s no rule against paying early or making several smaller payments over the course of the month. In fact, many people do this to keep better tabs on their budget.

Also, 30% of your credit score is based on your credit utilization ratio, or your debt divided by your total credit. By paying early or more than once in a billing cycle, you could help keep your credit utilization ratio low — 30% is the recommended maximum.1

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The Cons of Paying Credit Cards Early

This method only helps your credit score over time if you’re disciplined in your credit card use. If you keep your credit utilization ratio low one month, but then max your card out the next, this method isn’t going to do much to help your score. If you find yourself getting close to the maximum credit limit, you may want to request a higher credit limit.

Is Paying Early the Right Move For You?

If you prefer to track your budget in smaller increments, or just feel more comfortable making early payments, paying early or more than once a month is a good way to keep yourself in line. If you get paid twice a month, you might want to pay your credit card bill twice a month to help you keep tabs on your monthly spending.

If you’re unable to pay consistently, set up monthly email reminders so that you always pay your bill on time.

Resources:

http://www.nerdwallet.com/blog/credit-cards/credit-score/make-credit-card-payment-before-due-date/

Legal Disclaimer: The articles and information provided herein are for informational purposes only and are not intended as a substitute for professional advice. 

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