If you're working on building your credit score, every financial move counts. Paying on time doesn’t guarantee a specific score increase, but consistent on-time payments and low balances can help over time. And while paying your monthly credit card bills on time each month is a surefire way to boost your score, paying on time is one of the biggest drivers of a credit score, but what about the best time to pay your credit card?
Quick answer: For many people, the “best time” to pay is before the statement closes, because that can lower the balance that gets reported and may help your credit utilization. The “must-do” time is by the payment due date, so you avoid late fees and protect your payment history.
I personally try to pay off my credit card balance in full whenever possible, and sometimes make additional payments throughout the month. That said, the prevailing question looms: When is the best time to pay your credit card?
I talked to some financial experts to get to the bottom of this:
Expert tip: “Paying early or more frequently may help reduce the balance reported to the bureaus, which may lead to a lower utilization ratio and potentially a better score.” — Hardik Patel, founder and financial advisor, Trusted Path Wealth Management
Key Insights
When figuring out the best time to pay your credit card, make sure you make the minimum payment, pay on time, and keep your balance low. These three things will help you with your credit score.
Consider a secured credit card when trying to build credit.
To improve your credit, make sure you stay on top of your payments and set up autopay.
Payment history is about whether you pay on time, not how often you pay.
Credit utilization is about how much of your credit limit is showing as used, often based on what’s reported around the statement closing date (though reporting timing varies).
Interest charges are usually avoided if you pay the statement balance in full by the due date during the grace period.
So, when is the best time to pay your credit card?
No matter when you pay your credit card, you'll always want to make the minimum payment. Otherwise, that could cascade into late fees and hurt your credit score. While trailing behind on payments and being late doesn't usually show up on your credit report until after 30 days, you could get hit with late fees.
Credit cards are on a monthly billing cycle. So you'll need to make the minimum payment due each month. The minimum amount is determined by a base amount, then fees, interest, and any installment plan tacked onto it. The base amount is usually a flat percentage of your outstanding balance, and is between 2% to 4%.
But when is the best time to pay off your credit card? The ideal time to pay your credit balance is to pay it off early. "Paying early or more frequently may help reduce the balance reported to the bureaus, which may lead to a lower utilization ratio and potentially a better score," says Hardik Patel, a founder and financial advisor at Trusted Path Wealth Management.
And it also helps you stay on top of your payments. Remember: payment history makes up 35% of your FICO score. As it plays a major role in your credit score, you'll want to be current.
You'll want to bear in mind two things: payments that are on time and low credit usage. explains Julien Brault. "Low credit usage is basically how much of your limit you're using when the lender reports your balance," says Brault, who is a financial expert and founder of MooseMoney.
"Most issuers report around statement time, and the bureaus score what they see," he says. "Lower reported balance, which equals lower utilization and a better score. So even if you pay in full later, a high statement balance can temporarily drag your score."
Remember: a good rule of thumb for your credit utilization ratio, or credit usage, is the total balance across your cards against your total credit limit. The lower the better. Ideally, aim to keep your credit utilization capped at 10%. But below 30% is the highest you'll want to keep it at.
I try to pay off my credit card as soon as I can, and try to chip away at the balance by making extra payments throughout the month. That way, by the time the payment due date rolls around, I'll knock my balance down to zero.
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Make additional payments
Extra payments don't get you bonus points just for frequency, adds Brault, but they can help a lot because they keep your balance lower during the month. That's because Weekly/biweekly payments help if they lower what gets reported.
Brault provides the following example: Let's say you spend $2,000 through the month on a $3,000 limit but you pay $500 every week. "In that case, your statement might close at, say, $200 instead of $2,000," says Brault. "That's the difference between looking like you're using 7% versus 67% of your limit when it's reported."
If you can swing it, aim to pay off your balance in full each month. If that's not possible, see if you can pay your credit balance early.
Recently, I've made additional payments on my credit card balances – weekly or every other week, if I can. I end up putting most of my purchases on one main credit card, and if needed, I'll pause on adding purchases. Instead, I'll kick over everyday purchases to my default debit card, and work on chipping away at my balance.
This helps achieve two things, points out Patel. For one, it can bump down your credit utilization ratio when it's reported to the credit bureaus. And two, it helps prevent your balances from getting too high. "This doesn’t directly change how payment history is calculated, but it can positively affect the utilization portion of the score," says Patel.
Example (for people carrying a balance): If you can’t pay in full, paying earlier can still reduce interest charges because many cards calculate interest based on your average daily balance.
Try to pay off your full balance each month
Not only can paying off your balance in full each month help you with your credit score, but you'll also save money in interest fees each month. It's not always possible, but you can try to pay off as much as you can.
If you're getting a windfall – such as a tax refund, workplace bonus, or cash gift – consider tossing part of it toward your debt. (If you’re juggling high-interest debt, consider comparing APRs and prioritizing the highest-cost balance first.)
Pay attention to the key dates
When it comes to credit card statements, a few dates you'll want to keep in mind are the statement date, the payment due date, and the date your credit card balance is reported to the credit bureaus.
All this info can be found on your credit card statement, along with your transaction history, current balances, refunds, and standard Annual Percentage Rate (APR) and cash advance APR.
Statement date. The billing statement date is the statement closing date of your billing cycle. You usually have anywhere from 28 to 31 days until your payment due date.
Payment due date. Your payment due date is the date your payment is owed. You'll need to at least make the minimum payment.
Reporting date. The reporting date is when your credit limit and card balance is reported to the three credit bureaus – Experian, Equifax, and TransUnion. Credit card issuers and lenders usually report to the credit bureaus about once a month. This doesn't show up on your credit card statement.
While issuers can report your balance at any time during the month – and the frequency can also vary, they typically do so around the end of your billing cycle.
Grace period. Credit cards have a grace period. This is the period between the end of your billing cycle and your payment due date. During your grace period, you won't get hit with interest charges.
One thing to note: if you're taking a cash advance, those don't have a grace period. So interest charges kick in right after you make a cash advance withdrawal.
Expert tip: The balance that matters for interest is not always the same balance that gets reported for utilization. That’s why “pay before statement close” and “pay by due date” can both be important, for different reasons.
Look into a card to help you build credit
Besides best practices for when to time your credit card payments to help with your credit score and to help you save money, you might want to consider a credit card to help you establish – or rebuild your score.
A secured credit card can help you build your score. These cards require a security deposit – and your credit limit usually matches your deposit. Should you fall behind on your payments and default on your card, the credit card issuer can use your deposit to recoup losses.
Some unsecured cards are designed for building credit. They have lower minimum credit score requirements and you might be eligible for a credit limit increase or different card after a set amount of time.
Here are our top picks for the best credit cards to build credit:
| Credit card | Annual fee | APR | Minimum credit score | Security deposit | Features and benefits |
|---|---|---|---|---|---|
$0 | 18.24% - 27.74% | 670-850 (Good to Excellent) | None, it's an unsecured card. | 5% on travel via Chase Travel, 3% on dining + drugstores, plus built-in purchase and travel protections. | |
$0 | 17.49%-27.49% | 670–850 (Good to Excellent) | None, it's an unsecured card. | Pick your top category for higher cash back; extra rewards on groceries/wholesale clubs (up to a cap); intro APR + welcome bonus. | |
$0 | 18.49%, 24.49%, or 28.49% | 670–850 (Good to Excellent) | None, it's an unsecured card. | Unlimited flat-rate 2% cash back; intro APR + welcome bonus; simple setup for steady credit-building habits. |
How to use a credit card to build credit
If you're trying to build credit, here are some best practices for boosting your score:
Look into credit cards for bad credit
We've rounded up some of our favorite cards for you to consider. Besides the annual fee, you'll want to look at the APR. APRs on secured cards are usually higher than unsecured cards. So consider starting with a low security deposit which typically means a low credit limit. Then, try to pay off the balance in full each month if possible.
Set up autopay
Aim to set up autopayments for at least the minimum balance due, says Brault. "One missed payment can drop your score," he says.
Besides autopay, I make the extra effort to move money into the checking account I pay my credit card bills out of. From there, I try to make extra payments as much as possible to help me pay my balance in time.
If you want to lower your balance, consider making extra payments from funds earned from overtime worked, small windfalls, or side hustles.
Check your credit
Requesting a credit report to see where you can make improvements can prove helpful. When it comes to credit-building, do the opposite of whatever financial behaviors led to a drop in your score. You can order a free credit report weekly from each of the three bureaus from AnnualCreditReport.com.
However, if you want a free FICO score, some major credit card issuers offer a free score. You can also get one through credit monitoring service and through some budgeting apps and tools.
Summary: When is the best time to pay your credit card?
To boost your credit, you'll want to pay it off early, and you'll want to keep your balance low. Paying your credit card bill on time will help the payment history part of your credit score. You'll also want to keep your balance as low as possible to help with your credit usage. Practicing solid financial habits will help you boost your score gradually over time.
Bottom line: Pay before the statement closing date if you’re trying to keep reported credit utilization low, and pay by the payment due date to protect payment history and avoid late fees.
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Disclosures:Any opinions expressed are those of BestMoney alone, and have not been reviewed, approved or otherwise endorsed by the issuers.
The credit card offers and information presented on this page are current as of the published date. However, credit card terms, including APRs, fees, and promotional offers, are subject to change without notice. Some offers listed may no longer be available or may have expired. Please refer to the issuer's website for the most up-to-date terms and conditions.