When to Pay Your Credit Cards for Optimum Credit Scoring

When to Pay Your Credit Cards for Optimum Credit Scoring

Let’s say you’re a contractor and you have a $20,000 line of credit from a credit card, backed by VISA or Master Card.  Every month, you buy supplies for your business and you charge up to, or around, the maximum – $20,000.  You receive the bill and pay it off in total within three days, which is before the due date.  The next month you do the same: Charge all your supplies, roughly totaling $20,000 and pay it off in total after receiving the bill.

What is being reported to the bureaus?

The creditors report your billed amount, in this case, $20,000, to Experian, Equifax and/or Trans Union.  Your Credit Utilization is close to or at 100 percent.  If you had  FICO scores over 800, your score could go down by over 100 points!

Is there a way to fix this so you can have a much better, higher score and still conduct business the way you have been? 

Good NEWS!!!  Yes you can.

Go on-line and pay it one week early.  Then the bill you receive will have a reduced balance and thus a higher score due to improved credit card ratios.

If you don’t know the rules, you can’t play the game.


By | 2018-03-21T20:24:48+00:00 March 21st, 2018|Best Practices, Educational|

About the Author:

CERTIFIED FICO PROFESSIONAL - Currently the Executive Director and Founder of CreditGeni.us – A national Credit Education and Restoration Association with offices throughout the United States. MCS was founded in 2007 in response to the need for effective Credit Repair and Education.