Paying credit cards bills on time is essential to maintain a good credit standing or to rebuild one if you've previously had problems. Knowing how and when to pay your bill can also play a role in your credit score. It's easy to forget a credit card payment when life gets busy, but doing so will create problems that can haunt you for years. Create a plan that will help you not only remember to pay your bills but also give you the most assistance in maintaining or improving your score.
Step 1
Write down the due dates of every credit card bill on a calendar. Your due dates should be the same each month, so it will be easy to transfer this information through the end of the year. Make a note of the minimum payment due as well. These calendar entries will serve as a reminder to pay your bill and how much to pay.
Step 2
Call each credit card company (or check your statements) to find out the last day of your billing cycle. It is important to maintain a credit utilization percentage of no more than 30 percent. This simply means that you should try not to use more than 30 percent of your credit limit. For example, if your credit limit is $1,000, don't use more than $300. High credit utilization hurt your credit score. Knowing the last day or your billing cycle will allow you to make a payment to decrease your utilization before the bill ever prints. This also keeps the information from being updated with the credit bureaus, which would decrease your score.
Step 3
Determine the method in which you would like to pay your credit card bills. Many creditors offer the option of setting up monthly automatic payments that are drafted directly out of your bank account. This method is easy and convenient, eliminating the possibility of forgetting a payment. The downside is that you have to be sure the funds are available in your account on the day of the draft. You may also pay your bill online through a single payment, mail in a check, or pay by phone. Payments sent through the mail take more time to arrive and be processed, which can be a problem if you wait until the last minute.
Step 4
Make your credit card payment in any method you choose. If possible, pay more than the minimum due to eliminate credit card debt more quickly. For online payments or those made over the phone, you should receive a confirmation number. Record this number for your records. If you mail a check, you can keep a copy of the canceled check (some banks automatically scan these into the system and don't return them to you, though they can be accessed online).
Things You'll Need
- Credit card statements
- Internet connection
- Calendar
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