When should you pay your credit card bill?

You know it’s important to pay your credit card bill by the due date so that the card provider doesn’t charge you late fees or charge you sky-high interest rates. But when is the best day of the month to pay your credit card?

Some financial experts recommend checking your credit cards online every day and making payments whenever you have a balance. Others say it’s best to make the full payment, or at least the minimum amount, before your card’s closing date.

But making only the minimum monthly payment—even by the due date—isn’t ideal. Depending on how much credit card debt you have, it could take years and thousands of dollars in interest to pay it off with this approach, says Beverly Harzog, credit card expert and consumer finance analyst for US News & World Report .

It’s best to pay off your entire credit card balance in full before each due date. This way you won’t have to pay interest on your credit card.

But to understand when it makes sense for you to pay a credit card bill, you must first understand how credit card billing cycles work and consider your own financial habits: Do you usually charge more than you can afford? Are you already in debt on your cards? Do you often forget to make payments by the due date?

All of this will help you determine the best time to pay your credit card bills.

How long do you have to pay off a credit card?

The credit card billing cycle is typically 28 to 31 days. Any transactions made during this time period will count toward your monthly bill. After your billing cycle close date, you will have a grace period—usually around 25 days—when you can pay your bill without incurring interest or late fees.

After this period, your card will have a maturity date. If you do not pay off your balance in full by this date, interest will accrue on your remaining balance. And if you don’t pay at least the minimum amount, late fees will also be added to your balance.

Early payment of a credit card bill

Credit usage measures how much of your available credit you are using at any given time and is an important factor in determining your credit score, which accounts for 30% of your score. The lower the odds, the better your score will be.

Issuers report using your loan at different times, and this does not necessarily coincide with the closing date. You can call your issuer to find out when they report. If you pay before this date, your usage will be low – close to zero if you pay your balance in full.

Checking the balance every day

Some cardholders find it best to pay with a credit card every time you make a purchase or every time a new purchase is paid.

By applying this strategy, you won’t go into debt and you won’t have to worry about low credit utilization rates. You will automatically keep it low by paying for individual purchases before they add up to a big pile of debt.

“That way your debt doesn’t pile up,” says Jason Hull, certified financial planner and owner of Hull Financial Planning. “Look how much I spent!” moments.”

This strategy requires you to have enough money in your account on a daily basis to pay off what you have been charged. If you don’t, you probably won’t have enough money to make other payments due soon.

But if you have savings, this approach will keep you from ever paying interest on your credit card debt, Hull says.

“By doing so, your limbic system can’t make bad decisions on the spur of the moment,” says Hull. “You can’t buy that flat screen TV you don’t really need if you know you’re going to have to pay $500 on your credit card the next day.”

Why is it important to pay your credit card bill on time?

Regardless of which strategy you choose, the worst day to pay your credit card is any day that falls after the due date because it will result in a late fee. It depends on the issuer, but you can expect to pay up to $40.

Depending on when you pay, you may face more consequences than a late fee. 30 days after the due date, the late payment will be reported to the credit bureau.

Failure to consistently make timely payments can undermine a consumer’s credit score. Your payment history makes up 35% of your credit score: this is the most important factor. One late credit card payment can result in a 100-point reduction in your score and it will remain on your report for seven years.

After 60 days, this may trigger a punitive interest rate. These rates can be high, some providers raise your interest rate up to 29.99%. If you regularly keep balances on your credit card, this can be financially devastating.

Tips to help you pay your bills on time

If you want to always pay your credit card bills on time, here are some tips to make it as convenient as possible:

Change payment date

If you’re having trouble making a payment on your current due date, ask your issuer to reschedule it to a more convenient date, says Harzog. If you get paid on the 20th of every month and your due date is on the 15th, you can ask your credit card provider to reschedule it from the 15th of the month to the 21st.

Set up automatic payments

If you often forget about deadlines, set up automatic payments, says Lauren Bringle Jackson, an accredited financial advisor to Self. Simply log into your online credit card account, link a bank account to your card, and select the date you would like your payment to be made.

You can usually set your payment to cover the minimum monthly installments, pay off your balance in full, or pay a fixed amount that you set each month. Keep in mind, however, that you must have enough money in your account each month to cover the payment. If you don’t, you may receive chargebacks and fees from both your card issuer and your bank.

Set up reminders

Sign up for automatic payment reminders from your credit card provider. Card issuers can send you alerts whenever and wherever you want, whether it’s five or one day before the due date.

Make a family budget

If you’re missing due dates because you don’t have enough money in your bank account, create a budget that lists your monthly fixed costs and expenses. Then compare that to how much money you make each month.

If you can’t, check your credit card statements to determine where you’re spending too much and find out what spending habits you can change.

bottom line

Paying your credit card bill on time is essential to maintaining a good credit score. It can also help you avoid late fees and even late fees.

Now that you know all the options for when you can pay your bill, choose a time that suits you and your financial situation. Once you do this, your chances of missing a payment should be minimal.