When to pay your credit card Bill
When to pay your bills
Have you noticed that after you have paid off your credit card your score didn’t go up at all? Well when you look at your report you will see the date that your credit card reports to the bureau. You should pay your credit card bill 3 days before the due date if possible.
For example, if your minimum payment is due on the 15th, you should pay it on the 12th. You want to make sure your payment is credit on or before the 15th. When you look at your report you have to pay close attention to when your credit card is reporting to the bureaus.
When you review your credit report you will be looking to see when your creditor reports to the bureau. Some creditors do not report payment until a week later. So if you make full payment on the 12th and your creditor does not report your payment until the 22nd , this keeps your score down. Most people pay down their card, then begin to use if again immediately.
For example
You pay off your total balance on the 15th, the due date, your total credit limit was $500, and you pay the card down to a zero balance. You go to the store and buy something for $300.00 on the 18th, since your card doesn’t report until the 22nd. When they report to the bureau it will NOT show that you paid off the card on the 15th and have a zero% utilization rate. It will report that you have a balance of $300 and a utilization rate of 60% for this card. Remember the ideal rate is 30%.
If you have multiple cards with different due dates, this will keep your score down. The cards will report your payments at different dates and always have you at different utilization rates throughout the month even though you are making all your payments on time.
Review your credit report and see when all your accounts report to the bureau. You might want to move the date of your credit cards around so that the dates they report all concede.
More information
https://youtu.be/9UUYMvcAjYg
Have you noticed that after you have paid off your credit card your score didn’t go up at all? Well when you look at your report you will see the date that your credit card reports to the bureau. You should pay your credit card bill 3 days before the due date if possible.
For example, if your minimum payment is due on the 15th, you should pay it on the 12th. You want to make sure your payment is credit on or before the 15th. When you look at your report you have to pay close attention to when your credit card is reporting to the bureaus.
When you review your credit report you will be looking to see when your creditor reports to the bureau. Some creditors do not report payment until a week later. So if you make full payment on the 12th and your creditor does not report your payment until the 22nd , this keeps your score down. Most people pay down their card, then begin to use if again immediately.
For example
You pay off your total balance on the 15th, the due date, your total credit limit was $500, and you pay the card down to a zero balance. You go to the store and buy something for $300.00 on the 18th, since your card doesn’t report until the 22nd. When they report to the bureau it will NOT show that you paid off the card on the 15th and have a zero% utilization rate. It will report that you have a balance of $300 and a utilization rate of 60% for this card. Remember the ideal rate is 30%.
If you have multiple cards with different due dates, this will keep your score down. The cards will report your payments at different dates and always have you at different utilization rates throughout the month even though you are making all your payments on time.
Review your credit report and see when all your accounts report to the bureau. You might want to move the date of your credit cards around so that the dates they report all concede.
More information
https://youtu.be/9UUYMvcAjYg
