The best time to pay a credit card bill to increase credit score is before the statement closing date (also called the statement date or billing cycle end). This is because the balance reported to credit bureaus is typically the balance on the statement closing date. By paying down most or all of your balance before this date, you reduce your reported credit utilization ratio, which can positively impact your credit score. Additionally, paying by the due date each month avoids late fees and negative marks on your credit report. Key points:
- Pay before your credit card's statement closing date so a lower balance is reported to credit bureaus.
- Keep your credit utilization ratio below 30%, ideally below 10%, to maintain or improve credit scores.
- Pay at least the minimum by the due date to avoid late fees and negative credit reporting.
- Making multiple payments throughout the month can help keep your utilization low when you use your card frequently.
- If paying multiple times is impractical, at least pay in full by the due date.
In summary, paying before the statement closing date and always by the due date is the best strategy to increase and maintain a good credit score.
