re: How often do you pay your CC balance?

For everyone thst only pays it off monthly. You could probably have a better credit score if you paid off more frequently. Look and see what your utilization is.

If you pay regularly (or right before they check it monthly which I believe is 21 days before the due date) you will have a very low utilization rate which is a big factor in your credit score.


For a simple example, if you have one card and charge 300 dollars a month and have 1000 limit. You will have a 30% utilization rate if you only pay it off monthly most likely. But if you put 300 on it monthly, but pay it off regularly you will most likely never have a balance above say $20 dollars. Giving you a 2 % utilization rate. 20/1000 * 100.

This is calculated across all avaliable credit though. So if you have multiple cards, etc with 100,000 limit total you could carry a 1000 balance across all cards and only have a 1% utilization rate.

I pay mine regularly, but not daily. Usually once a week.

I think they check 21 days before (but dont quote me) the due date whichnis the statement closing date, so if you set autopay to pay right before that and it has time to clear, you should have a 0% utilization rate... I think, lol.



I learned it from this guy who is a credit expert. Explains it at about 1:45

youtube


ETA:

quote:

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Statement Closing Date - Last day of the billing cycle, Usually occurs 20-25 days before payment due date.


Payment Due Date- The date by which you need to pay the issuer. You must pay your balance off by this date to avoid interestcharges

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