What is the best time to pay your credit card, we tell you

You should always pay the bill credit card before the expiration date, but there are some situations in which it is better to pay before.

For example, if you make a large purchase or find yourself with a balance from the previous month, you may want to consider paying off your bill early. It seems like a small change, but it can have a significant effect on your overall finances and help protect your credit score.

When to pay off the balance early
While you are required to make at least the minimum payment on your statement balance by the due date to keep your account in good standing, you should always aim to pay your account in full each month.

However, that's not always possible, especially now due to coronavirus-related layoffs and record unemployment rates.

As a result, you can carry a balance from month to month. Depending on the size of your balance, this can cause you to incur thousands of dollars in interest charges if you only make the minimum payment. But if you have money left over in a month after essential expenses, you should use it to pay the utility bill. credit card ahead of time, instead of waiting until the expiration date.

When to make multiple payments on the credit card account
If the bill for your credit card is higher than usual because you've made a large purchase, like new workout equipment or office furniture, your credit utilization rate, or the percentage of your total credit that you're using, will go up. This is more noticeable when you have a lower credit limit.

The change in your balance can potentially lower your credit score, since utilization is the second most important factor in your credit score. It's important to keep a low credit utilization rate below the 30%, and ideally the 10% if you really want a good credit score.

Read More: Some things you need to know about credit cards

In these situations, and anytime you have a higher-than-normal balance, it may be a good idea to make multiple payments during your billing cycle or simply pay the entire balance before the due date. If you pay your balance more than once a month, you're more likely to have a lower credit utilization rate when the bureaus receive your information. Plus, paying multiple times can also help you keep track of your spending and reduce any overspending before you run into debt.

When card issuers report your balance to card agencies
The balance of your credit card it is reported to credit bureaus at different times in the billing cycle, depending on each lender. If you are not sure when the balance will be reported to the agencies, call your card issuer for the exact date.