with $0 fees and 0% interest with instant approval no credit pull required
$500 CREDIT LINE*
Kikoff is an official data furnisher for Equifax and Experian.
Self helps you build credit for any stage in your financial journey.
No credit score is needed to get started!
Pre - Qualify for a Capital One Credit Card
Pre- Qualify for a Chase Credit Card
Secured Credit card. No credit check. Helps build your credit.
Good Secured Credit Card
No credit Check
$35 annual fee
Paying your credit card balance before its statement closes can lower your interest payments and increase your credit score. This is because paying early leads to lower credit utilization and a lower average daily balance. In this guide, we'll give you an in-depth look into the best time of the month to pay your credit card bill and show you why paying early can benefit your finances.
When Is The Best Time to Pay Your Credit Card Bill?
At a minimum, you should pay your credit card bill before its statement date. Paying a credit card after due date can result in hefty late fees and, depending on the credit card, an increased interest rate. Most banks charge somewhere between $25-$35 per late payment, so these fees can add up quickly. The statement date that balance gets reported to the credit bureaus. Depending on your utilization of your credit cards that can increase or decrease your credit score.
Paying your credit card late can have a negative effect on your credit score, too.
Roughly 35% of your credit score is based on your bill payment history, so even one late payment can drop your credit score significantly if it's reported to a credit bureau. While banks are free to report any tardiness, in practice they most frequently report only those that are late by more than 60 days.
You can never pay your credit card too early, but be sure to check the statement period to which your early payment will be credited.
For example, if your statement closes on June 30th and you make a payment on June 29th, if you pay less than the full balance due, your payment will be credited to the previous statement. In this case, you will still need to make at least the minimum payment towards your June 30th statement.
How Paying a Credit Card Before The Statement Closes Affects Interest
Paying your credit card bill in full before the statement closes means you shouldn't have to pay any interest, unless you have been paying down a balance over several months. Most credit card issuers give you a grace period during which you're not liable for paying interest, provided you pay your account in-full before the statement due date. If you pay your balance before the statement closes, you'll see a "payments" line on your statement, reflecting the amount that's been subtracted from your statement balance.
Paying your credit card early can improve your credit score, especially after a major purchase. This is because 30% of your credit score is based on your credit utilization. In short, credit utilization is how much credit you're using in relation to your total credit line. For example, if have a $1,000 credit line with a $450 balance, your credit utilization is 45%.
** Credit card issuers generally report account balances to credit bureaus on or around when your account statement closes. If you have a high balance on your card, your credit card issuer will report high credit utilization. This is generally seen as a negative factor by credit agencies, so your credit score may drop accordingly.