Is it bad to pay your credit card before the bill is due?

Question

I often pay my credit card mulitple times during the month instead of making one big payment when the bill is due. If there is a balance due for the statement, I always pay it on time. I was just wondering if there's any negative aspect to paying my credit card multiple times during the billing cycle? Thank you.

Answer 1

Actually that is a very wise thing to do and will raise your credit score tremendously showing a great credit to debt ratio, and a good payment record.

Answer 2

Pengy's answer is correct. Your credit score will improve because the outstanding balance which the credit card company reports to the credit bureaus is generally the amount on your monthly statement. By keeping the amount showing on your statement extremely low, it gives you a great debt-to-credit-limit ratio, which is one of the main factors in your credit score.

On the other hand, there is no benefit to the part of the credit score that involves paying on time. That's strictly determined by whether you pay the minimum amount by the due date. You can prepay all but $1, but then, if you fail to pay the $1 balance, you will still get late payment fees and a negative item on your credit report.

Answer 3

I let it come due and then pay it all at once. Sometimes over pay it and have a credit balance to apply on next months bill.

Answer 4

No because it keeps you from having huuuuuuge debts. I know when I got married it was 1.4 million dollars and I payed it off as soon as I got the money so that I didnt spend it on clothes and baby stuff so It's good to pay the money so that once the bill comes you can say I already paid so I can go have a shopping spree at abercrobie and fitch Lol

Answer 5

There is no real bad thing for you paying your bill early. Infact it helps you in the long run by showing how you pay on time and that you are a good loan risk. It helps to get you lower intrest rates. Your doing good, keep going.

Answer 6

Well your credit score might not go as high as if you made 1 payment. Credit card companies prefer for someone to be at about 30% from limit on their credit cards. (it shows that the person is reliable and the company can make some money of the person)

Answer 7

it's good to do that,the credit company likes you to pay down the money. they will keep increasing your credit line more often when they see alot of payment activity.

Answer 8

I personally see no problem with it. I do the same thing when I can. I like the idea that I am being responsible with my money and putting it on my bills the moment that I get it. It has cut down on needless spending.

Answer 9

I don't have a clue hoe this affects your FICO score and am not sure any of the other answers do either. That said, it is more financially sound than carrying debt. Living debt free is the best plan. As it happens, your FICO score disappears entirely if you follow that plan.

Answer 10

I don't believe that there is anything wrong with that. At least I hope not because I do the same thing haha