When to Pay Your Credit Card Bill? A Simple Guide to Getting It Right

If you often use a credit card, you must pay your bills on time to maintain your credit score and prevent incurring late fees and excessive interest. It is indisputable that paying your credit card account before the due date is the best option.

Few credit card users know that the 45-day (or 50-day) interest-free period is only available if your credit card payment is paid on time. Interest will begin to accrue and the card issuer will impose late payment fees if you fail to meet the deadline.

Interestingly, in this instance, interest will start to accumulate on the day of the transaction rather than the last day of payment. These are a few of the most important things to keep in mind when it comes to scheduling your payments to prevent additional interest.

Key Points To Remember

1. Pay Before The Due Date: Since most credit cards include a grace period, you can avoid interest costs by paying off your balance before your statement’s due date. Additionally, this will assist you in maintaining a low credit use ratio, improving your credit score. Maintaining your credit utilization below 30% is the ideal goal.
2. Early In The Billing Cycle: You can successfully lower the amount reported to credit agencies if you pay shortly after getting your statement instead of just before the due date. Your credit utilization ratio may improve as a result. To keep balances low on your subsequent statement, for example, if your statement ends on the 15th of the month, make your payment on or shortly after that date.
3. Multiple Payments: You might want to think about making several payments within the billing cycle if you use your card a lot. This can aid in budgeting and maintaining equilibrium. This also keeps your credit utilization ratio from being negatively impacted by any excessive expenditure that occurs during the month.
4. More Than The Minimum Due: Keep in mind that you will still be responsible for interest on the remaining amount even if you simply pay the minimum necessary to keep your account current. Therefore, paying more than the minimum—ideally the entire amount owed—is advised.
5. Setting Auto-Pay: You might want to set up auto-pay for the minimum amount and, if necessary, make manual payments to cover the remaining amount to prevent late fines. To put it another way, you may minimize balances and prevent interest by making your payments as early as possible throughout the billing period.