Paying off the monthly balance

[artikk]

Hi, I have a question about how to pay off the balance on credit cards for long term.

For 1 or more credit cards

Is it better in the long term (for the credit score) to pay off the transaction as soon as it posts on the account or wait until after the statement date? I don't care about the short term. I'm worried that if I pay the balance too soon and the balance of 0 is reported every time, one would think the credit line isn't being used at all.

[enharu]

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@artikk wrote:

Hi, I have a question about how to pay off the balance on credit cards for long term.

For 1 or more credit cards

Is it better in the long term (for the credit score) to pay off the transaction as soon as it posts on the account or wait until after the statement date? I don't care about the short term. I'm worried that if I pay the balance too soon and the balance of 0 is reported every time, one would think the credit line isn't being used at all.

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you can just let the balance post and pay after statement cuts.

there's no need to worry about utilization ratio if you are not applying for any new credit.

just pay it off and let them report as 0 when you are planning to apply for something.

[longtimelurker]

Right, and  just to add this is short and long term, utilization has no history as far as score is concerned.  So if you always pay on the due date, and then today pay before the statement cuts, you get the same score as if you always paid before the due date.  And, in the former case, you get to keep your money for longer!