Boost your credit score by paying you bills by the reporting date:
Obviously, if you want good credit, you’ll pay your bills on or before their due date. But if you want to maintain a high credit score, it may be a good idea to pay some earlier – before balances are reported.
For example, say your credit card company reports your balance to credit reporting agencies every month on the 10th, but your bill is due on the 20th. At the first of the month you charge $5,000, but pay your bill in full on the 20th. As far as you’re concerned, you’re not carrying a balance; you got your bill and paid it by the due date. But if someone checks your credit on the 15th, the credit reporting agency will report you have a $5,000 balance.
For example, Jim called his creditor and asked what day they reported his payment history, which turned out to be a week earlier than his due date. From that moment on, he made his credit card payment before the reporting date, not the due date. That means if his credit is pulled, he always show a zero balance on his account.
Obviously, if you want good credit, you’ll pay your bills on or before their due date. But if you want to maintain a high credit score, it may be a good idea to pay some earlier – before balances are reported.
For example, say your credit card company reports your balance to credit reporting agencies every month on the 10th, but your bill is due on the 20th. At the first of the month you charge $5,000, but pay your bill in full on the 20th. As far as you’re concerned, you’re not carrying a balance; you got your bill and paid it by the due date. But if someone checks your credit on the 15th, the credit reporting agency will report you have a $5,000 balance.
For example, Jim called his creditor and asked what day they reported his payment history, which turned out to be a week earlier than his due date. From that moment on, he made his credit card payment before the reporting date, not the due date. That means if his credit is pulled, he always show a zero balance on his account.