Credit Card Payment Timeline: Clarifying The Calendar

The best time to pay a credit card bill is a few days before the due date, which is listed on the monthly statement. Paying at least the minimum amount required by the due date keeps the account in good standing and is the key to building a good or excellent credit score. That's true for everyone, but some people might want to take things a step further, particularly cardholders carrying balances from month to month and people with high credit utilization.  

When to Pay a Credit Card's Bill

1. If you are carrying a balance from month to month:

If you have a credit card balance that you carry from month to month, it's best to pay that credit card's bill as soon as the monthly account statement becomes available. This will save you money on interest. Paying the card's monthly bill in full for two consecutive months will also reduce your interest charges by reinstituting your account's grace period. Instead of purchases beginning to accrue daily interest charges right after you make them, you will have a window between when your monthly statement becomes available and when your bill is due to pay with no interest.

2. If your balance is up to 30% of your credit limit and you pay in full monthly:

You should simply pay your bill by the due date listed on your monthly statement. This will help you avoid credit score damage, and you will also avoid interest charges if you pay the full balance every month.

3. If your balance is more than 30% of your credit limit:

If the balance listed on your monthly credit card statements consistently equals more than 30% of the card's credit limit, consider paying your bill multiple times per month. Paying once in the middle of the month and again before the due date will reduce the balance listed on your statement. That, in turn, will lower your credit utilization, which should help your credit score.

Here's a quick example. Say you have a credit card with a limit of $1,000 and you charge $500 to it, using up 50% of your credit. Then, you make a payment of $300 before the billing period closes and your statement is generated. That brings your statement balance to $200 and your utilization to 20%. Paying off the final $200 before the due date keeps your account in good standing.

Tips for Not Missing a Credit Card Payment

It's a good idea to set up automatic payments with your credit card issuer so you don't have to worry about when to pay your credit card bill. Doing so will automatically make a payment from a linked bank account every month on the due date, or a day of your choice before that. You can't be marked late unless your account has insufficient funds. And even with automatic payments set up, you can still make additional payments any time you want.

For more advice to help you avoid the cost and aggravation associated with missed payments, you can take a look at WalletHub's tips for never missing a due date.

Yes, credit card companies do like it when you pay in full each month. In fact, they consider it a sign of creditworthiness and active use of your credit card. Carrying a balance month-to-month increases your debt through interest charges and can hurt your credit score if your balance is over 30% of your credit limit.

So, it is better to pay off your credit card each month than to keep a balance. Payment...

You should avoid carrying a balance on your personal credit card unless it's necessary to do so. You can still make purchases with a credit card and pay the bill in full by the due date, but carrying an unpaid balance from one billing period to another will usually trigger expensive interest charges.

While paying off your balance by the due date can help you maintain a good credit profile and avoid paying interest,...

No, Capital One credit card payments are not instant. A Capital One credit card payment submitted before 8 p.m. Monday through Saturday will post to the account on the same day it is received, but the payment amount will not immediately be reflected in your available credit. Generally, the payment amount will show up in your available credit by 8 a.m. the day after the payment posts. Payments received after 8 p.m. Monday through Saturday...

Your first credit card payment is usually due 21-25 days after the end of the first billing cycle. A billing cycle lasts about a month from when you open your credit card. You can find the exact due date, the balance owed, as well as the minimum payment due on your monthly account statement. Alternatively, call customer service at the number you see on the back of your card for assistance.

Why You Shouldn't Miss Your Credit Card Payment...

A monthly statement is a document provided by a financial institution, such as a bank or credit card issuer, to an account holder on a monthly basis. This statement summarizes the financial activity related to the account during the specific billing cycle.

The back of the statement usually describes some of the basic terms of your credit card agreement or loan. Also detailed on the monthly statement are purchases, payment(s), credit limit, available credit...

Posting date refers to the date on which a transaction is officially recorded or posted to your credit card account. It is the date when the credit card issuer adds a particular transaction to your account balance and updates your transaction history.

This date is significant because it determines when interest charges, if applicable, start accruing on the transaction. It also plays a role in the billing cycle and the due date for payments.