This Simple Change Could Raise Your Credit Score — and Save You Money

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If you’re anything like me, you’re constantly looking for ways to bump up your credit score. Luckily, there’s at least one easy way to do so — and you won’t have to spend a dime to implement it.

Here’s why paying off your credit card bill more frequently — say, once every week or two weeks — is a habit worth starting today.

It can help your credit score

Paying off your credit card more frequently means you’re carrying a smaller balance day to day. That helps your “credit utilization ratio,” the amount of credit you’re using compared to the amount credit you have in total. A lower ratio shows lenders that you’re less likely to run up a line of credit just because you can.

That can lead to a better credit score — which, in turn, leads to more favorable loan terms, top card offers, and more.

For example, let’s say you spend about $1,000 a month on a credit card. Instead of paying $1,000 once a month, you could pay $250 a week. You won’t have to change much (if anything) about your spending habits — just pay off smaller balances more frequently for a bump to your credit score.

Want to see what an elite credit score can get you? See our full list of the best premium credit cards available now.

Late payments become a thing of the past

Do you get paranoid about late payments, even though you always pay off your card on time? If so, more regular payments can alleviate those fears.

Paying off your balance weekly or biweekly all but eliminates the possibility of a missed payment. It gives you a nice buffer, too: Even if you forget a week here or there, you’ll have nothing to worry about.

Want more ways to avoid late payments? Try setting up autopay or payment reminders. A simple, weekly “time to pay!” reminder on your phone should do the trick.

You’ll save (a little) on interest

Fun fact: While most credit cards hand out interest monthly, it’s actually calculated daily, based on your average daily balance. That means the more frequently you pay, the more you can save. Lowering that average daily balance is the key.

Admittedly, we’re not talking about hundreds of dollars here — unless you’re carrying an enormous balance. And if you’re paying your balance in full, interest won’t be a problem in the first place.

But it’s one more reason to pay off smaller amounts quickly rather than larger amounts slowly.

It can improve your financial habits

Honestly, this is maybe the most important one: Paying your balance more frequently can make you more aware of both how much you’re spending and what you’re spending on. That can mean smarter long-term money habits — more valuable than a few dollars in interest or a bump to your credit score.

I make it a point to pay off my card every seven to 10 days — for all the reasons above, but also just to stay in the loop. If I see an unusual charge or a concerning spending pattern, I can spot it quickly — and do something about it. You can’t fix a problem you aren’t aware of.

No matter how many cards you have, checking your balance(s) won’t take more than a few minutes a week. It keeps you up-to-date on recent spending — and can also save you money and up your credit score. In short, there’s practically no downside.

Want to put your new payment habits to good use? See our list of the best credit cards available today and find the one for you.

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