How to Boost Your Credit Score by Paying a Credit Card Balance Early

Approximately 30 percent of your credit score is based on the amounts you owe on all of your credit-related accounts. One factor is the ratio of the balance shown on your most recent credit card statement to the credit limit on the card. The lower the ratio, the higher your credit score will be. Improve your score by paying down a balance you carry before you have to or paying a large monthly bill early so the statement will show a low balance.

Instructions

1

Call the phone number on the back of your credit score to speak with a customer service representative.

2

Ask which day of the month the credit card company reports your account balance to the credit bureaus. Most companies report the amount on your last statement, but some report the balance partway through a billing cycle. Either way, you want your payment to be applied before this date each month so your credit report will show a lower balance.

3

Decide how much you can afford to pay on your credit card bill. The best option is to pay the balance in full so your credit report shows a balance of zero, or at least close to it if you make charges after sending the payment but before the account balance gets reported. If you can't pay the full amount owed, pay as much as you can afford each month rather than making just the minimum payment.

4

Log onto the online account for your credit card and make the payment about two business days before the credit reporting date, or send a payment by mail about a week before the date. Either of these methods should get the payment there on time to lower your balance before it gets reported to the credit bureaus.

5

Continue this process every month. Your credit card companies update your account balances monthly, and only the most recent month factors into your credit utilization. Therefore, you want your balance to be as low as possible each month on the day it is reported to the credit bureaus.