Is it better to make a payments on your credit card now or wait until the due date to pay one lump sum?

My credit card bill for this month will be about $2000. I don't have the funds now, but I anticipate that I'll have the funds after Christmas. The payment is due Jan. 1st. Is it better to pay what I can now and work at getting it as close to zero before the next statement date (Jan.12) by making multiple payments or to pay one lump sum/payment closer to Jan. 1st.|||You would save on any interest charges if you pay it in full every month, but it reflects differently on your credit report. If you can pay it all off BEFORE the next statement date, then you will do fine.





Even if you pay off your credit cards in full every month, your credit report may show a balance on those cards. The total balance on your last statement is generally the amount that will show in your credit report.


Suppose that you use your credit card to purchase pay utilities, phone, gas, groceries, and everything else each month, always spending around $1,200 each month. When the bill arrives, you pay the balance in full, now you would think you would get bonus points for staying out of debt and paying off the balance in full each month, but you must consider how you look on paper. What is your credit card issuer reporting to your credit report each month -- the total amount you owe at the time of the report and that you pay on time, not the fact that you pay your balance in full each month. Therefore, on paper, it looks like you carry a $1,200 balance on your credit card and never pay it off. Therefore, a good idea would be to have 2 or 3 credit cards and rotate them, using one for a few months, then using another, so that your credit card company can report a zero balance every few months to the three credit reporting agencies.





Hope this answers your question.|||If you're carrying a balance (meaning you usually pay less than the full amount that's on the card), then making payments sooner will reduce the interest you're charged. If you pay your bill in full every month, it won't make a difference, since you're not being charged interest.|||If you can't pay the whole balance, pay as much as you can as soon as you can. The interest is calculated on the average daily balance. Making several payments would lower the average daily balance and save some on the interest.