Early Payments

[Anonymous]

Is it worth it to make payments early so far as your credit is concerned?  I usually try to make my payments early in hopes of "helping" my credit but I never see this reflected on my CR.  Is the standard "Pays as agreed" the best status one can achieve?

[UnderEstimated]

Yes, I think "Paid as Agreed" is the best you can do.  Although one of my accounts shows at "Paid as Agreed/Ahead of Schedule" or something to that affect.  It occurred on my first car loan through Wells Fargo.  I don't think that played any factor in my credit score though.

[Tuscani]

There is no benefit to paying before your due date.

[Anonymous]

Although paying early will not affect your credit rating, paying early on any fixed interest loan or credit card will save you MONEY. Every day the balance is accruing interest, and the earlier the balance is paid down, the sooner it will be paid off and you ultimately pay less interest. So - a loan payment on your car that is due on the 15th of each month will accrue less interest if you always pay it on the 1st. Your mortgage will be paid off ahead of schedule if you make a half payment every two weeks. I apply that theory to my credit cards - I make half of what I intend to pay two weeks before due date, and the other half on the due date. Every dollar that is paid off is a dollar that never accrues interest.

[Anonymous]

TexMontana,

I agree that one saves on interest when they pay their bills ahead of time.  I pay the minimum due as soon as I receive my credit card statement online and I pay again before the due date.  I also pay my mortgage payment every two weeks.  It's amazing how fast my balances are coming down by doing this. 

SandyK

[smallfry]

Never late that way if you lose track. I know a few people who do this. I'm pretty **bleep** about it so I actually look forward to paying bills. Sad huh? LOL.

[Anonymous]

Paying early does nothing for your credit score. Paying on time is as good as it gets. That, and of course utilization. Pay on time, keep your balance between 1 to 9%, and you're pulling the CC "lever" as far as it will go to improve FICO.

[MidnightVoice]

I am starting to pay my credit card balances down before the statement comes out so my utilization is low 

[Anonymous]

You don't get any benefit to paying early. However, do note that multiple payments per billing cycle, or sometimes early payments, can be interpreted by various card issuers as increased risk.

[MidnightVoice]

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okrogius wrote:
You don't get any benefit to paying early. However, do note that multiple payments per billing cycle, or sometimes early payments, can be interpreted by various card issuers as increased risk.

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Does that mean that keeping utilization low makes me a higher risk?

Message Edited by MidnightVoice on 05-31-2007 07:50 AM