What Happens When You Make a Credit Card Payment Too Early

Paying your credit card installments on time each month is a minimum requirement to ensure that your account remains in a healthy state. With most credit card companies, making a payment just one day late could hurt your credit record, along with your credit score.

Late credit card payments have many consequences and paying your bills earlier than normal isn’t as of a good idea as you may think.

It doesn’t make sense, right? Paying any bill early should impress your credit card provider, above anything else.

However, in your attempt to increase your credit score, you might potentially be hurting it.

Making payments early on any account, or to any creditor, is usually very helpful, but in some cases, when it comes to credit cards, it’s not entirely necessary, as it won’t have as big of an effect on your credit score than you initially thought it would.

The best way to ensure you have a positive rating for your credit card, on both your credit score and credit report, is to only repay your bill a few days prior to the actual due date. It will eliminate your risk of making late payments, and you won’t have to worry about planning to make a payment on a specific date, as you’ve already paid the monthly amount due.

There is such a thing as paying your credit card too early

It might seem a bit far-fetched, but it is entirely true. Paying your credit card bills too early, before the statement closing date, will mean that your extra payment will only be applied to the current month, and not to the following month, which you might have insinuated you wouldn’t have to pay again.

If you do have extra money lying around and would like to either decrease or repay the entire credit card balance owed, you could pay bigger amounts to repay the entire amount quicker. You could also create a savings account for your credit card, of which you could use the extra money to repay the next payment.

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