Since credit card bills are due monthly, most people pay theirs once a month. This isn't the only option, though. You can technically pay your credit card as often as you want. Some consumers prefer to pay more often, such as every two weeks or even on a weekly basis. It might seem pointless, but there are actually a couple of benefits to paying your credit card every week.
It keeps your credit utilization lower, which is good for your credit score
Weekly credit card payments are one of the easier ways to boost your credit score. That's because of an important scoring criteria called your credit utilization ratio. It's a measurement of how much of your credit you're using. Card issuers report your balances and credit limits once per month, and these are used to calculate your current credit utilization.
Paying weekly keeps your balances and your credit utilization lower, which is better for your credit score. Here's an example to explain how this can be beneficial.
Let's say you have one credit card with a $10,000 credit limit and a $5,000 balance. Your bill is due on the 28th, but the card issuer reports your balance on the 24th. You could do either of the following:
- Pay monthly. You pay $5,000 on the 28th. Your card issuer already reported a $5,000 balance on the 24th. Because your credit limit is $10,000, your credit utilization is 50% and will negatively impact your credit score.
- Pay weekly. You pay $1,250 on the 7th, 14th, 21st, and 28th. Your card issuer reports a balance of $1,250 on the 24th. Your credit utilization is 12.5%, which is excellent and will positively impact your credit score.
How much this matters will depend on your typical credit utilization. If it's on the high side (under 30% is recommended), paying weekly can lower it.
It could help you budget
As a general rule, the more you monitor your spending, the easier it is to stick to a budget. So, if you review and pay your credit card bill weekly, that could work better for budgeting than doing so monthly.
Imagine that you've decided to spend no more than $500 per week and $2,000 per month on your credit card. The first week, you spend $650. If you pay your credit card every week, you'll see that you went over your limit. You can then figure out where to cut back and adjust your weekly spending the rest of the month so you don't exceed $2,000 total.
If you pay your credit card monthly, you might not notice you're overspending. Maybe you end up spending about $650 per week. By the time you get to the end of the month, you have a $2,600 bill, putting you $600 over budget.
There are plenty of other ways to monitor your spending. Lots of consumers like to use budgeting apps that connect to their financial accounts. But paying your credit card every week also works well.
It might be inconvenient
The drawback to paying credit cards weekly is that it's more time-consuming. You can set up autopay for your monthly credit card payment. No credit card company that I know of has the option of setting up automatic weekly payments.
That means you'll need to log in and make a manual payment every week. If you have multiple credit cards, then it's even more to manage.
Should you pay your credit card bill every week?
The only rule about paying your credit card is to always make your payment by the due date. Ideally, you should pay the entire statement balance. If you do that, the card issuer won't charge you interest on your purchases.
As long as you're making at least your monthly payment, the frequency is up to you. Paying weekly could be a good idea if your credit utilization has been hurting your credit score, or if you want to better stay on top of your spending. But making weekly payments can be inconvenient, so it's fine if you'd rather stick to paying monthly.
FAQs
Card issuers report your balances and credit limits once per month, and these are used to calculate your current credit utilization. Paying weekly keeps your balances and your credit utilization lower, which is better for your credit score.
What happens if I pay my credit card every week? ›
Paying your balance more than once per month makes it more likely that you'll have a lower credit utilization rate when the bureaus receive your information. And paying multiple times can also help you keep track of your spending and cut back on any overspending before you fall into debt.
How often should I pay my credit card to increase my credit score? ›
Consistently paying off your credit card on time every month is one step toward improving your credit scores. However, credit scores are calculated at different times, so if your score is calculated on a day you have a high balance, this could affect your score even if you pay off the balance in full the next day.
Does the 15-3 rule work? ›
Depending on how you do it, the 15/3 method can work because it helps you keep your credit utilization rate low and pay your credit card balance on time and in full every month. If anyone tells you that it offers any other benefits beyond that, they may not be a good source of financial advice.
Does making two payments a month help credit score? ›
However, not everyone knows that making multiple card payments during a month can help to raise our credit score. It is because paying off multiple cards each month shows lenders, such as credit card companies and banks, that you are good at managing your finances and can handle more debt responsibly.
Is it bad to pay off credit card a week early? ›
Bottom line. Paying your credit card bill early is not intrinsically good or bad, but it can help you avoid negative habits such as high credit utilization and late payments. Paying your credit card early won't directly influence your credit score, but it can help in creating good financial habits down the line.
Is it bad to pay your credit card 3 times a month? ›
Paying your debts multiple times per month.
Similarly, making payments toward a large debt multiple times in one month may be beneficial to your credit scores by helping you reduce your credit utilization rate.
How to raise your credit score 200 points in 30 days? ›
How to Improve Your Credit Score
- Review Your Credit Reports. The best way to identify which steps are most important for you is to read through your credit reports. ...
- Pay Every Bill on Time. ...
- Maintain a Low Credit Utilization Rate. ...
- Avoid Unnecessary Credit Applications. ...
- Monitor Your Credit Regularly.
Using more of your credit card balance than usual — even if you pay on time — can reduce your score until a new, lower balance is reported the following month. Closed accounts and lower credit limits can also result in lower scores even if your payment behavior has not changed.
Is it bad to max out a credit card and pay it off immediately? ›
Absolutely, while it's possible to max out your Credit Card and subsequently pay off the balance, it's generally ill-advised. Maxing out your card can lead to a high Credit Utilization Ratio, which may negatively impact your Credit Score.
Most people usually make one payment each month, when their statement is due. With the 15/3 credit card rule, you instead make two payments. The first payment comes 15 days before the statement's due date, and you make the second payment three days before your credit card due date.
What is the two payment credit card trick? ›
Using the 15/3 credit card hack to boost your credit score. The 15/3 credit card hack suggests making two payments per billing cycle: one 15 days before the due date and another three days before.
What is the 15 8 rule? ›
15-minute rounding rule
Rounds each time entry to the nearest quarter hour with an 8-minute breakpoint. For example, any time entry between 7:53 AM and 8:07 AM will round to 8:00 AM.
Can I pay my credit card every week? ›
You're not limited to a single monthly payment. Smaller, more frequent payments can reduce your interest charges and provide other benefits. Gregory Karp is a former NerdWallet writer and an expert in personal finance and credit cards.
What is the best FICO score possible? ›
And when it comes to credit, 850 is the highest the FICO® Score☉ scale goes. For more and more U.S. consumers, practice is making perfect. According to recent Experian data, 1.54% of consumers have a "perfect" FICO® Score of 850. That's up from 1.31% two years earlier.
Is it good to use a credit card then paying immediately? ›
If you make your payment shortly before your statement date, it could help reduce your credit utilization, which can help you increase your credit score or maintain good credit.
Is it better to pay credit card debt weekly or monthly? ›
If making one larger payment each month doesn't work well with your budget, it may be wise to pay down your balance more often. Making smaller weekly payments, or even two or three payments in a month, spreads out the impact on your checking account balance.
Is it better to pay bills weekly or monthly? ›
While nobody really looks forward to doing their bills monthly, much less even more frequently, experts agree that making weekly time for bills is a smarter way to go. Reviewing and paying bills on a weekly basis can save you headaches, hassles and keep you ahead of your financial goals.
Is it good to use your credit card and pay it off every month? ›
It is not necessary or beneficial to carry a balance on a credit card for credit score purposes. To maintain a good credit score, it is best to pay off credit card balances in full every month.
Is it bad to pay off credit card too often? ›
It's pretty common knowledge that if you don't pay your credit card regularly, it will lead to problems. But can you get in trouble for doing the opposite and paying your card too often? No. Frequent payments are definitely not a problem.
