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Multiple payment?

Regular Contributor

Multiple payment?

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

Message 1 of 5
4 REPLIES
Valued Contributor

Re: Multiple payment?

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
Message 2 of 5
Regular Contributor

Re: Multiple payment?

Wow. Thank you so much! 

Message 3 of 5
Valued Contributor

Re: Multiple payment?

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

*8/10/13
Message 4 of 5
Regular Contributor

Re: Multiple payment?

The example was great! 

Message 5 of 5