Making your credit card payment online gives you the ability to pay as close to the due date as you’d like. You can even pay on the due date if you want to while you do have the flexibility to hold off paying your credit card until the last minute. It’s often better to pay your credit card before the due date.
You’ll Lower the Interest You Pay
If your credit card issuer uses your daily balance to calculate your finance charges, you will benefit from making your payment earlier in the billing cycle. The more days you have a low balance, the lower your finance charge will be.
It Makes Budgeting Easier
Paying your bills all at once rather than as they come due makes it easier to stay on budget. When you pay your bills early instead of waiting, the funds can be deducted from your bank account. Then you’ll have a better idea of how much discretionary spending you can do for the rest of the month.
Free up Additional Credit Sooner
It can take anywhere from one day to a few days for your credit card payment to post to your account and be reflected in your balance and available credit. If you pay before the due date, it can work in your favor if you need to free up some credit to make purchases.
The timing of your credit card payments is also important when it comes to the credit card balance shown on your credit report. Making your payment before the current billing cycle closes will show a lower balance on your credit report—assuming you don’t make any additional purchases before that time. It can help boost your credit score by lowering the credit utilization used when calculating your score.
Lower the Risk of Being Late
Waiting until the due date to make your card payment means you’ll have to be very careful to make your payment before the cut off time. Your credit card payment may be due anywhere from 5 p.m. to midnight eastern time. If you miss the cutoff time by even just one minute, you face late payment penalties. Early payment of your account means you don’t have to deal with the time crunch that comes with trying to make a last-minute credit card payment.
Save on Expedited Payment Fees
Many credit card issuers only accept online payments up to a certain time. After that time, you may be able to make an expedited payment over the phone, but it will typically cost you a fee. While less than a late fee, the expedited payment fee still is one you can avoid by making your credit card payment earlier in the month.
Give Yourself Peace of Mind
Perhaps one of the best benefits of paying your credit card before the due date is that you don’t have to be anxious or worry about whether you paid the bill. You don’t get the “due date jitters” or the panic that comes with trying to get your credit card payment in at the last minute.
If you find you continually forget to make your credit card payment until the last minute, get in the habit of paying your bills en masse monthly, bi-weekly, or weekly, depending on your pay dates. You may also be able to schedule payments via your bank’s online bill pay or directly at the credit card issuer’s website.
However, be careful not to submit your credit card payment too early, particularly if you’re not paying in full. If you make a payment before the current billing cycle closes, without realizing that’s what you’re doing, you could mistakenly miss your next credit card payment.
FAQs
Paying early also cuts interest
Is it better to pay a credit card early or on due date? ›
You will save money on interest charges by paying your bill in full early. You will not have to worry about forgetting to make a payment by the billing due date if you've already paid your bill.
What is the 15 3 rule for credit? ›
You make one payment 15 days before your statement is due and another payment three days before the due date. By doing this, you can lower your overall credit utilization ratio, which can raise your credit score. Keeping a good credit score is important if you want to apply for new credit cards.
What is the best date to pay a credit card? ›
If your goal is to keep your credit utilization as low as possible, make it a goal to pay your credit card balance before your monthly statement date, which is when your card issuer will report your balance to the credit reporting agencies.
Is it bad to pay off a credit card immediately? ›
By paying your debt shortly after it's charged, you can help prevent your credit utilization rate from rising above the preferred 30% mark and improve your chances of increasing your credit scores. Paying early can also help you avoid late fees and additional interest charges on any balance you would otherwise carry.
Do I get points if I pay my credit card early? ›
Do you still get points if you pay your credit card early? Yes. If you have a rewards card that earns points based on your spending, those points won't be lost if you pay your credit card bill early.
When should I pay my credit card bill to avoid interest? ›
Pay your credit card bill in full each billing cycle
For example, if you get your credit card bill on the first of any given month, you will likely have until the 22nd of that month or longer to pay your credit card statement in full without incurring any interest charges.
What happens if you use 90% of your credit? ›
If you've got a $1,000 limit and spend $900 a month on your card, a 90% credit utilization ratio could ding your credit score.
Does paying a credit card twice a month help credit score? ›
That said, making two payments per month actually can help your score—but for a different reason. This strategy makes your credit utilization ratio appear lower, which can boost your credit score in the long run.
Is it bad to make multiple payments a month on a credit card? ›
Paying your balance more than once per month makes it more likely that you'll have a lower credit utilization rate when the bureaus receive your information. And paying multiple times can also help you keep track of your spending and cut back on any overspending before you fall into debt.
It's possible that you could see your credit scores drop after fulfilling your payment obligations on a loan or credit card debt. Paying off debt might lower your credit scores if removing the debt affects certain factors like your credit mix, the length of your credit history or your credit utilization ratio.
Why did my credit score go down when I paid off my credit card? ›
Credit utilization — the portion of your credit limits that you are currently using — is a significant factor in credit scores. It is one reason your credit score could drop a little after you pay off debt, particularly if you close the account.
Do credit card companies like when you pay in full? ›
While the term “deadbeat” generally carries a negative connotation, when it comes to the credit card industry, you should consider it a compliment. Card issuers refer to customers as deadbeats if they pay off their balance in full each month, avoiding interest charges and fees on their accounts.
Is it OK if I pay my credit card on the due date? ›
Credit card payments are due the same day and time every month, often 5 p.m. or later. A credit card payment can't be considered late if it was received by 5 p.m. on the day that it was due, according to the CARD Act. Some card issuers may set a later due date if you pay your bill online, giving you even more time pay.
When should I pay my credit card bill to increase my credit score? ›
Consistently paying off your credit card on time every month is one step toward improving your credit scores. However, credit scores are calculated at different times, so if your score is calculated on a day you have a high balance, this could affect your score even if you pay off the balance in full the next day.
Is it better to have credit card due date at beginning or end of month? ›
Your credit card due date will occur after your billing cycle ends, and the time between your statement closing date and your due date is your grace period.
