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.
If you thought this tip was helpful and want to be in the know when it comes to expert real estate, lending, and credit advice, please like our Facebook page by clicking the Facebook icon below and clicking the LIKE button on this page’s Facebook feed.
Take the next step
Getting started is easy. Just pick one of the options below and answer some questions. It only takes a few minutes.