You should pay your credit card bill by the due date to avoid late fees, penalties, and interest charges. Paying at least the minimum amount by the due date keeps your account current. However, there are additional benefits to paying earlier:
- Paying before your statement closing date can lower your reported balance, which may improve your credit score by reducing your credit utilization ratio.
- Making multiple payments during the month can also help keep your reported balance low and reduce interest if you carry a balance.
- Some issuers allow you to select a payment due date soon after your paycheck arrives to make timely payments easier.
In summary, the key points are:
- Always pay at least the minimum amount by the due date.
- To avoid interest, pay the full balance before the due date.
- To improve credit score, consider paying before the statement closing date or making multiple payments monthly.
If you're not sure about your exact due date, you can find it on your credit card statement or contact your card issuer. This approach helps you avoid fees, reduces interest costs, and can improve your credit score over time.
