Should I Pay My Credit Card Bill Early?

People often have trouble deciding whether or not they should pay their credit card bills early. Paying your credit card bill early and waiting until the last minute have pros and cons. Here are some things to think about as you make your choice. 

By paying your credit card bill early
You will reduce your credit utilisation ratio (and improve your credit score)

Credit utilisation is the second most heavily-weighted factor in credit scoring models, so if you are looking to improve your credit score, it’s essential to keep your credit utilisation ratio as low (30% or less) as possible. If you have a high credit limit and tend to carry a balance from month to month, making early payments can help you get your utilisation ratio down to a more manageable level. Doing so can lower the total percentage of available credit you’re using, which could benefit your credit scores. 

You will be able to avoid interest and late payment charges by paying your credit card bill early

One way to avoid interest charges on your credit card bill is to pay early. If you have the funds available, try to pay off your bill a few days before the due date. This will help you avoid any late payment fees and lower the interest you accrue. If you can’t pay the entire balance, aim to at least pay the minimum due. This will help keep your account in good standing and prevent late fees from accumulating. By being proactive with your payments, you can avoid costly interest charges and keep your finances on track.

You can free up your credit limit for an upcoming big purchase by paying your credit card bill early

Paying your bills early can be a great way to free up your credit limit. If you have a bill due at the end of the month, paying it early means you won’t have to use up your credit limit for that purchase. This can be especially useful if you anticipate making other big purchases on credit. So, if you’re looking to free up extra credit, paying your bills early is a great way to do it.

 You will be able to manage your budgets better

If you pay your credit card dues early, you’ll always know how much you have to spend. This makes it easier to budget your expenses and avoid a shortfall when it comes time to pay your credit card bill. Even if you can’t always avoid using your credit card, early payment will help you control your finances better. So if you’re looking for a better handle on your spending, make early payment of your credit card dues a priority.

Paying your credit bills in time

However, if you pay your credit card bills on time (not early), you will earn money in the form of interest and reward points. Take a look at my earlier blog, “You can actually earn money using credit cards – here’s how” to understand how.


Paying your credit card early has its benefits, but so does paying it on time. Consider your financial situation and decide what is best for you. Many resources are available to assist you if you need help managing your finances. Whatever you do, make sure you stay on top of your payments to avoid late fees and interest charges.

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