Do This One Thing to Optimize Your Credit Score


It may sound ridiculous when I ask the question, “When should you pay your credit card bill?”  The answer is obvious: When you receive the statement and before the due date. That is a fine answer. You should always pay your credit card bills on time.

Depending upon your current FICO score, you could benefit by over 100 points by following this one simple method.

Do not pay your credit card bill AFTER you receive your statement…pay it before.   Let me explain.

Explain It to Me, Lucy

Let’s say you’re a contractor and you have a $20,000 line of credit through a credit card.

Every month, you buy supplies for your business and you borrow up to the limit.

In other words, your credit utilization ratio is close to 100%.

You receive the bill and pay it off, on line, in total, the next day.  The next month you do the same: Borrow up to the limit and pay it off in total after receiving the statement.

What is being reported by your creditor to the credit bureaus?

They are reporting what’s on your statement! A ratio of 100% credit usage.

Maxed out.

Your FICO credit score will reflect that you are becoming, or have overextended. In other words, the FICO score reflects that you are getting into FINANCIAL trouble.  Remember, your FICO credit score does not take into account your income.

The FICO credit score is designed to predict credit health. And the closer you get to maxing out your credit cards, according to the FICO credit score, you are closing in on CREDIT illness.

And you could receive a severe credit score hit, dropping the score up to 100 points. (The amount of FICO points you will lose is determined also by what else is on your credit report. So if you had a low credit score prior, your FICO score will go down less than if you had a high credit score). The FICO score will not see that you paid your bill because that is not reported.

Is there a way to change all this, to benefit you, while not changing your purchasing behavior?

Good NEWS!!!  Yes you can.


If you pay your credit cards a week ahead of time, or in the 3rd week of the cycle, it will show a zero balance and you’ll get a higher credit score. You go online and pay the bill electronically, on the 21st day of the cycle. You could extend this to the 25th day of the cycle.

Do you have to pay it all off?  NO.

This works also if you pay down the balance, but not to zero.

If you, hypothetically, have a credit card with a limit of $300 and you have a balance of $285, (which is 95% credit utilization).  Your score will immensely benefit by paying it down to a $45 balance, where, for FICO scoring purposes, it is treated as if you have no balance!

The key is to pay your credit card on the 21st to the 25TH day of the cycle, online!



Revolving debt accounts for 30% of your score.

If you follow these instructions, you will see a significant credit score increase!

If you have any questions, please write me at ficoexpert@creditgeni.US or call me at 888.417.3400.

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