This Is The Best Time To Make A Credit Card Payment

Having a credit card is a huge responsibility especially when it comes to paying on time. Good thing there’s a trick in deciding on which part of the month should you go and make a payment. Not only will this minimize the amount of interest charged, it will save you a lot of bucks as well.

Paying Before the Due Date



Although it is right to make your payments on time, paying before its due actually has more benefits. This spares you from late payment fees and penalty rates. Also, this keeps your account and credit in right standing.

Earlier in the Billing Cycle



If your credit card payment is due later in the billing cycle, you might want to try paying before the due date. However, paying earlier in the billing cycle can reduce the interest rates you’re subjected to, especially if you don’t make further charges to your credit card within the billing cycle. The sooner you pay your balance, the lower the interest rate will be.

Before the Account Statement Closing Date


©Money Control

Credit card companies report credit card balances to credit bureaus every month. So if you want a low balance in the report, make a payment before the account statement closing date. This protects you from the risk of increased credit utilization which often causes a lower credit score. Paying in this schedule is helpful if you plan to apply for a major loan before the next account closing date as well.

Before a Large Purchase


Clear out your balance before charging a large amount to your credit card. This will also keep you from credit utilization spike and protect your credit score from the heavy impact.

As Soon As You Get Paid



First things first: know your priorities. Although you deserve a bit of splurging for the work you’ve done, it’s still a wise decision to set yourself free from financial blocks. Always think about your dues before anything else.

Based On Materials From Tackling Our Debt

Cover Photo Credits: Prudential Overall Supply