Reply
Regular Contributor
Rein
Posts: 122
Registered: ‎10-29-2012
0

Multiple payment?

Does it help or hurt your credit score to make payment multiple times on your credit card? Thank you!

Valued Contributor
dodfire
Posts: 1,453
Registered: ‎04-14-2012
0

Re: Multiple payment?

[ Edited ]

The black and white answer to your specific question is NO.

 

Multiple payments are not what helps your score.... What helps your score is low utilization of your available credit.

 

What you have read on here about people who make multiple payments is basically this. They are making multiple payments on their accounts before the next cycle reports to the credit bureau so that they have paid down as much of their debt as possible before the card reports again. Thus, lowering their UTL %.

 

If you make 1 payment or 10 payments during that cycle makes no difference.

 

Example:

Your credit card limit of $1000.00

You charged $500.00 your utilization is 50%

during that cycle you make 4 payments of $100.00

New Balance $100 a utilization of 10% and a boost in your FICO score

OR

1 payment of $400 yeilds the same results.

 

 

*8/10/13
Regular Contributor
Rein
Posts: 122
Registered: ‎10-29-2012
0

Re: Multiple payment?

Wow. Thank you so much! 

Valued Contributor
dodfire
Posts: 1,453
Registered: ‎04-14-2012
0

Re: Multiple payment?

No problem, hope it helped clear things up a little.

*8/10/13
Regular Contributor
Rein
Posts: 122
Registered: ‎10-29-2012
0

Re: Multiple payment?

The example was great! 


myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.

>> About myFICO
FICO Score - The Score that matters
Click to Verify - This site chose VeriSign SSL for secure e-commerce and confidential communications.
Fair Isaac Corporation is a BBB Accredited Financial Service in San Rafael, CA
FOLLOW US Social Media Facebook Twitter Pinterest Google+
}