Some credit-savvy consumers may already know that the lower their credit-card balances are comparative to their credit limits, the better their credit score will be. The trick is in the details, though.
Contrary to public belief, credit companies do not report your balance AFTER your payment is made. They report your balance the same time as your statement date—the date on which they published your bill. So paying down credit cards after the statement is issued does not help the way it would if they were paid down BEFORE the statement date. By paying down the balance BEFORE the statement date, a lower balance will be reported to the credit bureaus, resulting in a more favorable score.
Check out a video company president Nate Davis made about this by CLICKING HERE.
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