When to Pay Credit Cards to Improve Credit Score

| Tedis Baboumian | ,

If you’re trying to improve your credit score, one of the most important things you can do is pay your credit card on time. But when exactly should you pay it? In this blog post, we’ll talk about the best times to make credit card payments to boost your credit score.

First things first, let’s talk about why paying your credit card on time is so important. Your payment history is the most significant factor that goes into calculating your credit score. Late payments can have a significant negative impact on your credit score, so it’s essential to make sure you’re paying on time.

So, when should you make payments to improve your credit score?

  • Pay On or Before the Due Date

The most important thing is to make sure you pay at least the minimum amount due on or before the due date. Late payments can lead to hefty fees and can negatively impact your credit score. Plus, your credit card issuer may report your late payment to the credit bureaus, which can stay on your credit report for up to seven years.

  • Pay More Than the Minimum

While it’s essential to make at least the minimum payment on time, paying more than the minimum can help improve your credit score. Paying more than the minimum shows lenders that you’re responsible with credit and can pay off debt in a timely manner. It also helps keep your credit utilization ratio low, which is another factor that goes into calculating your credit score.

  • Pay Before Your Statement Closing Date

Your credit card statement closing date is the date when your billing cycle ends. Any charges made after this date will be reflected on your next statement. Paying your balance in full before your statement closing date can help keep your credit utilization ratio low. A lower credit utilization ratio can help boost your credit score.

  • Pay Before Applying for Credit

If you’re planning on applying for credit, like a loan or a new credit card, it’s a good idea to pay off your balance in full before you apply. This can help keep your credit utilization ratio low and show lenders that you’re responsible with credit.

In conclusion, paying your credit card on time and in full is essential for improving your credit score. Making payments before your statement closing date and paying more than the minimum can also help keep your credit utilization ratio low, which can positively impact your credit score. Remember to stay consistent with your payments, and you’ll be on your way to a better credit score in no time!

Dovly can help you work with the credit bureaus to straighten out any inaccurate information. Dovly is a free AI credit engine that can help you dispute any errors you find on your credit report. Try it risk-free with our free membership tier. Get in touch with Dovly today.

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