Wednesday, 7 August 2019

When To Pay Your Credit Card Bill And Raise Your Credit Score

When To Pay Your Credit Card Bill And Raise Your Credit Score

In this article, I am going to be talking about when you need to pay your credit card bill. Here is what you need to understand to make this decision for yourself, the first thing you need to know is that


The credit bureaus do not see your daily credit card activity. When you go swipe in your credit card buying million different things in the month. The credit bureaus don't see that.

  • Only the credit card company is going to know that, what they report out to the credit bureaus is only the balance due on your statement on your bill. So at the end of the month or whenever the end of your cycle is. When you get a credit card statement. Either via email in pdf form or in the mail in an envelope


When you look at that bill the total amount that the payment due, the total balance that you have spent, that is going to get reported to the credit bureaus, not every single thing that you have bought. All those individual purchases don't matter.

If you are spending a lot of money on different things throughout the month. All that matters, for the credit bureaus to make calculate your credit score is how much is actually due when your statement comes or what your balance is when your statement comes

That means that since your statement gets printed after the cycle, you need to make sure that the end of your cycle which is the statement closing date, is the day that you have the right balance that you want the credit bureaus to know about.


  • Even if you spend more throughout the month, if you don't want the credit bureaus to know that you just want them to think that you spent 10% or 9% then you need to make sure that on your statement closing date that is the amount that your credit card shows that you own or that you have spent.


Which means that you want to pay down your balance on your statement closing date or by your statement closing date to leave only 9% to 10% of your total credit available on that bill. So then it gets printed and the credit bureaus only see that you spent 9% or 10% of your balance even though throughout the month you spent more. That is the trick there.

  • But this only matters if you really want to improve your credit score right now or maintain a really high credit score.

If all you care about is making sure that you don't pay interest and you don't necessarily care about tracking your credit score right now, then it does not matter.

The day that you choose to pay your bill as long as you pay it by the due date in full. That will be the way that you can avoid paying interest.

But if your goal is to improve your credit score that is when it comes into play, the fact that you need to make sure that on your statement closing date you leave just a small percentage left to be printed on the statement balance, on your statement bill, because that is all that matters.

Again it's a constant reminder that the credit bureaus are only going to see your balance that is printed on your statement.

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