here I would be giving you the Best Time to Make a Credit Card Payment. Making regular on-time credit card payments is one of the criteria for you to quickly build up your credit score. This means that making credit card payments is directly linked to your credit score and today I am going to show you some of the best times to make a credit card payment.
It is very important to keep on making credit card payments however it is more important to make your credit card payment at only the best times. Therefore in this article, I will be showing you the best times to simply make your credit card payment to have all the benefits possible for making credit card payments.
That saying that says timing is everything is definitely a very correct saying because it will also apply to your use of credit cards. That being said today you are going to see the best time to make credit card payments so that you can start doing so yourself for the best rewards.
Best Time to Make a Credit Card Payment
To do yourself a favor your definitely need to always pay your credit card balances before the due date each month so that they do not get reported to the credit bureau. Because any negative information that gets reported to the credit bureau will stay in your credit report for nothing less than 7 years.
That is one of the reasons that you need to maintain on-time payment of bills using a credit card. To fully comprehend the best time to make payment of bills you need to know what a billing cycle is for your credit card. All credit cards operate in a monthly billing cycle which you need to understand in order not to go on in your payment.
That being said below are some of the best times to make a credit card payment to make you enjoy being a proud owner of a credit card:
Always pay Before the Due Date
One of the best ways and the best times to make your credit card payment is to always pay your credit card balance in full or minimum before the due date. The due date of your credit card is when the account for that month is going to be closed and another open. If you do not make your credit card payment before the due date you will attract various late payment penalties.
Make payment before making a large purchase
If you are about to make a very last purchase using your credit card it is advisable to, first of all, make a payment to clear off your previous balance before doing so. Making a last purchase with your credit card when you have a balance will definitely lead you into debt. Not only will you go into debt it will also hurt your credit utilization ratio which will affect your credit score.
So it is very wise to only make the last purchases with your credit card when you do not have an outstanding balance today. This will reduce the risk of you owing more than you can pay and getting penalized for not being able to make on-time and minimum payments. And also keeping track of your credit score so that it does not take a hit.
Pay before the account statement closing date
Apart from your payment history and other things that can affect your credit score if eventually reported to the credit bureau is your credit utilization ratio. Therefore to keep a low credit utilization ratio you have to ensure that you make payment before the account statement closing date. All balances that are not paid before the closing date of the account statement are reported to the credit Bureaus.
When it gets reported to the credit Bureaus it will still in your credit report for up to seven years even after you have made the payment. This is why you always need to make payments on your account before The statement closing date.
Why It’s Important to Pay Bills on Time
It is very important to pay bills on time because your payment history accounts for 35% of your credit score. This means that if you have a record of making late payments your credit score is definitely going to take a dip. When your credit score takes a deep it is going to affect you financially because getting a loan, mortgage, and all that will become a little bit difficult.
When You Should Make a Credit Card Payment
Just like I always say your parent’s call is a very important aspect of your financial life which means you need to keep it in good standing. To keep your credit card in good standing you need to make payment on or before the due date this is especially if you pay your entire balance on your credit card.
However, if you cannot make your entire payment you can at least pay part of the balance before the closing date which will help to maintain or improve your credit score.
Should you pay your credit card the day before or the same day?
Making your credit card payment on or before the due date is what improves your credit score or maintains it. As long as you are paying part or the entire but once you are owing in your credit card you can pay it the day before or on the same day as the due date. What you should not do is make your payment after the due date is over.
Does it matter if you pay your credit card early?
It matters a lot to make payment for your credit card early because this account for 35% of your credit score. If you make regular on-time payments your credit score is definitely going to improve over time but if you don’t it will end up going into your credit report for 7 years. Even after making the necessary payment, it will still reflect for 7 years in a credit report.
Does paying a credit card early hurt your credit score?
Paying your credit card early does not hurt your credit score rather it helps to improve your credit score because your payment history accounts for 35% of your credit score. It also makes you more attractive to lenders and gives you the best offers when going for loans credit cards and mortgages.