Credit Cards

Best Way To Pay Credit Cards

  • Last Updated:
  • Feb 21st, 2018 2:57 pm
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[OP]
Newbie
Feb 19, 2018
9 posts
1 upvote

Best Way To Pay Credit Cards

Hello,
I am new to this site & to the world of Credit Cards and just wanted to ask advice on the best way to pay Credit Cards (To Improve Credit Scores) Do you purchase something and then pay it off right away or do you wait until the statement arrives then pay it off in full? Which is better? Any advice would be very much appreciated. Smiling Face With Open Mouth

Nicole
5 replies
Deal Guru
User avatar
May 8, 2009
14440 posts
12312 upvotes
Going to the Moon
Hi Nicole. To answer your question...makes no difference on credit score impact.

What will improve your credit score:
  • credit utilization (spend money via CC, keep that CC active for multiple years...do product changes on that card rather than grabbing a new card to replace it)
  • paying off debt (auto/student loans, credit card or line of credit balances)

Back to your two options...

1. Pay CC immediately if you:
  1. have less self-control on finances (that way you'll only spend what you have in your bank account)
  2. pay credit card out of a joint account, and need to consider those spends as "funds no longer available" in chequing account, to prevent the other user from spending it or utilizing it for other purposes
  3. Have no safety nets to make sure your payments are made on time

2. Pay CC when statement is due if you:
  1. redeem cashback towards the card, or simply rather avoid overpaying the card
  2. can park the funds in a savings account, then transfer it to the credit card when the statement is due
  3. have amazing self-control and are ready to pay the full amount on the statement by its due date
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[OP]
Newbie
Feb 19, 2018
9 posts
1 upvote
titaniumtux wrote: Hi Nicole. To answer your question...makes no difference on credit score impact.

What will improve your credit score:
  • credit utilization (spend money via CC, keep that CC active for multiple years...do product changes on that card rather than grabbing a new card to replace it)
  • paying off debt (auto/student loans, credit card or line of credit balances)

Back to your two options...

1. Pay CC immediately if you:
  1. have less self-control on finances (that way you'll only spend what you have in your bank account)
  2. pay credit card out of a joint account, and need to consider those spends as "funds no longer available" in chequing account, to prevent the other user from spending it or utilizing it for other purposes
  3. Have no safety nets to make sure your payments are made on time

2. Pay CC when statement is due if you:
  1. redeem cashback towards the card, or simply rather avoid overpaying the card
  2. can park the funds in a savings account, then transfer it to the credit card when the statement is due
  3. have amazing self-control and are ready to pay the full amount on the statement by its due date
Thank you so very much for your advice. :)
Sr. Member
Sep 6, 2016
756 posts
295 upvotes
When I started to pay off all my CC before statement days I got my score higher 850...

Plus I decreased utilization to almost 0%
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Sr. Member
Sep 6, 2016
756 posts
295 upvotes
NicoleL243659 wrote: Not due but before statement days is based my family experience
Thank you so very much for your advice. :)
MasterPro wrote: When I started to pay off all my CC before statement days I got my score higher 850...

Plus I decreased utilization to almost 0%
Public Mobile $35 / 4GB LTE a month forever!

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