How Fast Do You Need To Pay Off Your Credit Cards For A Good Score?
Each credit card in Canada has it’s own billing cycle, the time every month when you receive your bill in the mail. You then have a grace period, with which to pay your credit card bill, usually an additional 21 days, or so. There is no need to pay your credit card bill prior to the end of your grace period, or more than once per billing cycle, unless it helps you budget. If you pay your credit card off immediately after each purchase, the credit card company may not have enough time to report your credit card balance to the credit bureaus. Just make sure to pay your credit card off at the end of your grace period so you get the benefit of your balance being reported to the credit bureaus, without having to pay any interest.
Perhaps the number one strategy to ensure your payments are made on time is setting up automatic bill pay between your bank checking account and your credit card issuer. You can set it up in one of two ways, depending on your preference. First, you can set it up so that you pay the minimum payment, and then manually pay the rest of the credit card bill. This ensures, you’re never late in the eyes of the credit bureaus, and that you retain the benefits of reviewing your credit card statement for any fraudulent charges, before paying the entirety of your credit card bill before the due date. Or you can set-up the automatic bill pay so it pays your entire credit card bill prior to the due date, taking away any risk that you forget to pay your bill on time.