[Sue]

Right now I pay off my credit card in full (back to zero balance) every two weeks.

My friend said then the balance will never report to the bureaus and it will hurt my credit score. Is that right?

If yes, when should I pay my credit card in full to maximize to increase my credit score?

Thanks,

[Jonathan]

Depends on the credit model. FICOs 2 and 4 can give you (respectively) 14 and 10 additional points for carrying a balance of $1 versus $0.

I BELIEVE FICO 3s will also bump you up for a very low balance.

All other FICOs and VantageScores it doesn’t make a lick of difference.

Obviously those three models are only used for a fraction of credit extensions, so you’re most likely good to keep it simple and pay to $0.

[Marty]

It is absolutely not true that paying off your credit card in full every month hurts your credit score

[Lisa]

I had no idea this mattered. We receive a statement and pay the balance when it’s due. Interesting paying off early will increase your score.

[Jasmine]

My score has pretty much always been 800+. Here are my observations…
In the past, I often cleared balances early and thus regularly had $0 at statement closing, even though I had put hundreds, usually thousands through the card that month.

My score seemed to be stuck in the 810s to 820s.

In more recent years, I still make partial payments during the month to always keep the utilization super low, but I’ve deliberately been leaving a little on the card so that the statement closes above $0, and then I pay the small remaining statement balance the day after it closes.

Was able to get my score up to the high 830s doing this.

[Josh]

In my experience, it only really mattered in the beginning stages. I’m sitting at 750 right now and it hasn’t gone up or down, but I let a small balance sneak through due to paying off weekly.

You can try carrying a balance and see if that stimulates your score a little.

Check with your CC company and see when they report to the bureaus.

It’s usually around when the statements become available.

My suspicion is, if you’re paying off every 2 weeks, some of your balance is reporting to the bureaus already.

[Paul]

Your method won’t hurt but it’s not necessary. Make sure to pay the full statement on or before the due date, there’s no need to pay earlier.

FICO in the 800s, I just set my automatic payments for a few days before due.

[Sarah]

I pay mine every two weeks, sometimes more, have been doing that for years and it sure doesn’t hurt mine.

[Megan]

You do want to show that you know how to use credit. We do see some people who are constantly reporting zero have challenges getting approved by certain issuers for new cards.

It is certainly not going to tank your credit but it’s unnecessary in the same way that prematurely paying any other bill is.

Set up autopay via the issuer’s website for the due date, let your money chill out earning your more money.

[Kristin]

If this has been your M.O. for a while, then why not pull your credit reports and see if or how they are being affected?

It’s probably not a bad idea to do this, anyway, just to check for errors or suspicious activity.

Just remember to lock them all back up after the credit report is run.

[Christopher]

It won’t hurt your score appreciably, if at all.
Paying every two weeks hurts your overall returns though – a credit card is a 0% loan for the first month, so paying more than monthly just pays off a 0% debt rather than letting cash sit in a savings account earning >0%.

Also, just pay the statement balance, since that’s all that would charge interest.

[Andrew]

Why would you pay it off a single day before it is due? Autopay and let it ride. Also, you friend is wrong in several ways.

Payment history and credit usage are only bad is you miss payments or use too much %.

Also, your score only matters when it is checked by bank, landlord, employer.

You could pay off the cards right before then if worried.

Get your credit score and report and really understand the factors.

[Su]

I pay the statement balance only every month, it is a free loan, take advantage of it without paying interest.

[Michael]

I’ve heard this myth growing up too. It’s been years since I’ve listened to any of that malarkey.

I wonder if saying that is a ruse created by some large credit card company many years ago to nickel and dime their customers who keep $100 dollars balances.

I pay my whole balance on all of them and range 795-815 depending on the month.

[Bill]

Your friend is wrong. Try report the zero balance and it can help your credit score.

But realistically, if it’s a card you use more than once a month, there is still likely to be a balance of some sort.

The actual ideal time to pay is right before the statement closing date so the balance really does show $0.

Unless you have an important reason to absolutely maximize your score though, it generally makes only a small difference for people who already have excellent credit.

[Justine]

If your cards are reporting $0 balance every time they send their numbers to credit bureaus then yes you will show 0% utilization and that can dip your score a little.

Showing 1-10% is recommended to show you’re a “responsible user.” Showing 0 looks like you don’t use you credit therefore it’s unclear if you use it responsibly.

Every persons credit score is unique to their history and the 5 factors. Utilization is only one factor.

You can get a free credit report once a year and review the reasons for the score. See if they put “minimal utilization” as a reason for your score.

Then you’ll know.

[Scott]

Not true.
To boost your credit score, pay off before statement closing date.
Shows 0 balance.
0% utilization rate.

[Barbara]

I honestly don’t think it’s going to affect your score that much, especially if you already have a high score.

But why every two weeks? I find it so much simpler to just set all my cards to autopay the full balance on the due date each month.

I don’t usually run up against a credit limit anyway.

And I use YNAB for budgeting so I know I always have the full amount set aside for the payment.

I don’t even think about it.

[Tony]

Why? This doesn’t matter at all. Set your payments to auto-pay each month and get on with your life.

[Kathryn]

I’ve been paying mine off every two weeks for years when I get paid. My FICO is 823. I wouldn’t say your friend is correct, at least in my case.

[Catrina]

My goal is automation, so I pay the balance when due. Can you automate to pay twice a month?

[Jennel]

I pay my cards off every few days sometimes before the transaction is done pending. I’ve never had an issue.

[Alec]

I won’t pretend to know off or does affect your score once we or the other but the effect is minimal if it exists.

I do know that even paying it off more then once a month the credit reporting companies are aware of any balance on a rotating basis and not just on the due date or statement closing date.

I get free Credit monitoring in multiple cards and multiple of them email me or notify me when the balance has increased/deceased on one of your cards (sometimes 2-3 days after I pay it) and the score occasionally fluctuates by 2-3 points bread on a larger balance on one card or another.

[Ashley]

My personal experience: I paid off all my credit card debt (which wasn’t much, 10%) earlier this year. My score dropped 50 points.

I’ve been paying it in full all summer, waiting for the score to rebound.

Last month, I didn’t owe anything when the statement came, and I’ve used the card some since then.

I didn’t make a payment on the due date (as the last statement balance was 0).

Now that the balance has hit the credit bureaus, my score has jumped 65 points.

[Chris]

Depends on the credit card agency for reporting. Some only report what the balance is when it is due.

‘A FICO credit score is calculated based on five factors: your payment history, amount owed, new credit, length of credit history, and credit mix.’

Some companies will mark your credit card for removal if you have a zero balance at reporting or do not use your credit cards often enough to their liking.

Usually not when the economy is this robust.

[Roxanne]

I always thought it was fine to pay the balance as soon as the charges post to the account.

I pay mine off about every 2 weeks and haven’t really noticed my score decreasing.

It is weird though the bureaus online show it between 780 and 800, but a recent pull for a loan reported 830 from TransUnion.

So, I have no idea what my score actually is now.

[Joe]

I pay ours to 0 on the last day of every month. We didn’t use credit cards for a decade. I have an 820 credit score:

[Author]

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