Why Pay Your Credit Card Bill before It’s Due

Why Pay Your Credit Card Bill before It’s Due
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It’s common financial sense to pay all your bills on time especially your credit card because a day or two of delinquency can mean high interest rates. When it comes to your bills, delays or missed payments are not an option if you want a healthy financial standing and a good credit score.

But did you know that other than paying on time, paying before your due date for your credit card in particular also has its advantages? In fact, financial experts suggest that you pay before your due date if you can in order to reap the following advantages:

Save on interest charges

Credit card charges are pretty tricky and greedy. Most credit cards, for instance, charge interest rates by the day. As long as you carry a balance on your cards, you also accumulate interest charges on a daily basis. This means that if you pay your balance before the due date, you save money on your interest charges. Doing so essentially lowers your average daily balance which is always good news for any card holder.

Revamps Your Credit Score

Another reason to pay your credit card bills early is so to revamp your credit score. When you have a balance at the end of your statement period, it is reported to credit agencies as debt which may significantly affect your credit score and negatively if you have a high balance for a certain month.

To make it all work for your own good, paying off your balance early or before the statement cycle closes can significantly help. When your balance is low, your debt to credit ratio is also in a good place which means that you are essentially revamping your credit score just by paying a few days early than your due date.


Pays Off Debt Faster

When you pay your dues early, it follows that you’re paying off debt faster or sooner. This is especially helpful if you’re the type who can’t stick with your budget easily. By setting aside the money for your credit card bills beforehand, you make it easier for you to allocate your funds to the right places. Committing to pay your dues early is also an excellent habit that can help with your debt problems as a whole.

As you credit card balance lowers each month and you save money on interest charges, you’ll have extra money to allocate to paying more of your debt. If you keep at this habit, you’ll eventually find yourself debt-free and at a faster time frame than planned too.

More Balance on your Credit Line

If you’re planning on making a huge purchase next month, paying off your credit card bill early will free up more balance on your credit line. Maybe you’re investing in something pricey or you’re travelling abroad. Whichever the case is, opting to pay your credit card bill early will ensure that you’ll have sufficient balance on your credit card to help you complete that purchase or to keep you financially equipped while on vacation.

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