Pay BEFORE Your Statement Closing Date
This is the secret sauce. By paying off your balance before the statement closing date, you lower the amount that gets reported to the credit bureaus. Since credit utilization affects your score, keeping that number low can make a huge difference.
Here’s a simple breakdown:
Statement Closing Date: March 15
Due Date: April 10
Best Day to Pay: March 10-14 (before the statement closes)
By paying early, the balance reported to the credit bureaus will be much lower, making it look like you’re using less credit—even if you’re still spending like usual.
How I Discovered This Hack
I learned this trick the hard way. A few years ago, I was juggling multiple credit cards, thinking I was managing them well. I always paid on time, but my credit score wasn’t budging. Then one day, I was applying for a new rewards credit card, and the bank rep casually mentioned, “Your utilization is a little high—paying before the statement closes could help.”
That one sentence changed everything. I started paying early, and within a few months, my credit score jumped by 30 points!
Real Talk: How This Helped Me Get a Lower Mortgage Rate
Flash forward to when I was eyeing my dream condo in New York City. I was pre-approved for a mortgage, but the interest rate was higher than I wanted. My loan officer explained that improving my credit score could secure me a better rate. So, I doubled down on this strategy, making sure to pay off most of my balance before my statement closed each month.
Within a few months, my score climbed, and I was able to lock in a much lower interest rate. That one little tweak saved me thousands over the life of my loan!
And it’s not just about mortgages—having a higher credit score helped me get approved for a premium travel rewards card that let me fly to Europe for free. It even saved me from putting down a security deposit on my last apartment lease. Who doesn’t love saving money?
Other Credit-Boosting Payment Strategies
If you want to supercharge your credit score, consider these strategies:
1. Pay Multiple Times a Month
Back when I was freelancing and had unpredictable income, I started making biweekly credit card payments to keep my reported balance low. It worked wonders! Even during high-spending months, my utilization stayed low because my mid-month payments kept the balance from looking inflated.
2. Keep Your Utilization Below 10%
Most people think 30% utilization is good (and it’s fine), but the real credit score magic happens when you keep it below 10%. The month I got my score to its highest ever? My reported utilization was 7%.
3. Set Up Auto-Pay for at Least the Minimum Due
Life gets busy. Set up an auto-payment for the minimum amount to avoid late fees, then manually pay off the rest before the statement closes. I learned this lesson after missing a payment while traveling—never again!
4. Request a Credit Limit Increase
A higher limit automatically lowers your utilization—just don’t go spending more just because you can! I asked for a limit increase on one of my oldest cards and saw an instant credit score bump.
5. Avoid Hard Inquiries Before a Major Loan Application
If you’re about to apply for a mortgage or auto loan, try to avoid opening new credit accounts. A few years ago, I made the mistake of applying for a store card right before leasing a car. That tiny hit to my credit score nudged my interest rate slightly higher. Lesson learned!
6. Keep Your Oldest Credit Card Open
Your length of credit history makes up 15% of your score. If you close your oldest account, you could shorten your credit history, which may lower your score. Even if you don’t use it often, keeping that first card open can help. My very first credit card? Still in my wallet 15 years later.
Debunking Credit Score Myths
There’s a lot of bad credit advice out there, so let’s bust a few myths:
Myth: You need to carry a balance to build credit.
Truth: Paying in full every month is the best way to build credit and avoid interest charges.
Myth: Checking your own credit score lowers it.
Truth: Only hard inquiries (like applying for new credit) affect your score. Checking your own report is smart and encouraged!
Myth: Closing old credit cards improves your score.
Truth: Closing old accounts can actually lower your score by shortening your credit history and increasing utilization.
Final Thoughts: Small Changes, Big Wins
Paying your credit card bill before the statement closing date is one of the easiest hacks to boost your credit score. It’s a simple shift that can open doors to better interest rates, higher credit limits, and more financial freedom.
This trick has helped me, and I know it can help you too. Have you tried this strategy? Let me know how it worked for you!
If you found this helpful, share it with a friend who could use a credit score boost! Let’s build wealth and financial freedom together.
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