Paying off a credit card before the monthly statement is issued?

[Anonymous]

First of all I am new to the forums so take it easy on me. My question is this. I want to pay off

charges on a credit card before the next months statement is sent to me. Will this affect my

FICO score if I do this or will it be better if I wait until the statement is sent to me? Thank you

for your response.

[Anonymous]

Welcome!

Depends on your overall utilization - do you want/need the balance to report? If yes, and the balance is <9% of your balance, wait. Otherwise pay when you like.

[Anonymous]

I have a  $5,000 dollar maximum limit on the cc. I want to pay off $ 3,120 dollar balance on it.

If I pay this off before I receive my statement will it affect my FICO score?

[Anonymous]

Your FICO score will change as long as it is paid before your CC company reports your account info to the CRAs and that date varies by CC company.

[sh9730]

If that is your only credit card, then YES it should make a BIG difference!  If it is one of several, it depends on your total amount of credit available (mostly).  For example, if you had 3 cards with a total credit limit of 15,000 then the $3100 you have balance right now is only 20 percent.  Paying it off will still make a difference, BUT if that 5000 card is all you have, then that 3100 balance is 62%!!  BIG DIFFERENCE.  FICO like LOWER percentages used (but not all cards at zero). 

Also, remember that even if you pay off each month AFTER your statement cuts it will still show a balance on your reports.  By doing it BEFORE the statement cuts you will show zero, BUT remember to check the account after the statement date to make sure there isnt a small interest charge still owed or something.  If you dont make that second payment in a month, you ll get a late!!

[Anonymous]

I want to thank you all for the answer I was needing. Much appreciated.