Paying off your credit card's outstanding balance on the payment date may not be the best solution for your credit score.
Here's how you can strategically time your credit card balance payments to actually increase your credit score.
Your credit card company reports your outstanding credit balance to credit bureaus on a particular date.
This is what credit bureaus use to determine your credit utilization ratio and generate your credit report and score.
Focus on making your credit card payment right before your card issuer reports the balance to credit agencies.
You can ask your credit card company when it reports the balance or look at your credit report to see the date.
If you pay your bill before this date, you will have a low credit utilization ratio to remain an attractive borrower.
Keeping your credit utilization ratio as low as possible just before the reporting date will help improve your score.
Make your payments on time. If possible, try and pay your balance in full so you can boost your score steadily.