When should I pay my credit card bill to increase credit score?

Short answer: Paying your credit card bills on or before the due date helps your credit utilization rate. Since credit utilization is one of the major factors determining your credit score, you can get a good boost by paying your bills on time. Lower credit utilization is reported if you have paid your bills around the time that the company might be reporting your credit activity to the credit bureaus.

Long answer: Your credit score depends on the information that is reported once a month to credit bureaus. So if your bills are paid before the company reports your activity, it is possible to increase your credit score. Generally, we don’t know the exact date that your credit activity is reported to the credit bureaus. However, it is usually around the due date of your credit card bills.

The credit utilization ratio is a major factor in your score. To make sure that a lower credit utilization rate is reported to the bureaus, experts recommend paying off your credit card bill as it reaches the 30% mark. This way, your credit balance and utilization will not exceed the 30% limit and your credit score also improves. You also don’t have to worry about the date your credit activity is reported to the bureaus because your bills remain good any day of the month.