One Simple Habit That Could Help Your Credit Score

When it comes to credit cards, there’s a lot of misinformation out there. One of the most damaging myths is that paying down your entire balance each month won’t earn you any credit. Not only is that info completely false but, as it turns out, you could potentially help your credit score by making payments more than once a month.

This is a trick I heard of a few months back that’s so simple you’ll wonder why you hadn’t considered it sooner. See, when I was first approved for my Discover card, the credit limit was set at only $4,500. Not that I planned to spend that much in any given month, but I did want to keep my credit utilization — which is the second largest factor in determining your credit score — under 10% while still getting all the benefits that spending on that card entailed. So what’s a boy to do in this situation? Keep my balance low by making additional payments throughout my billing cycle.

After my purchases had posted and that 10% usage barrier ($450 in my case) was surpassed, I’d simply make a payment to bring my balance back down. In doing so, I still received all the cash back I was entitled to but my credit scores started gaining a few points as I continued to employ this method. Better yet, by making sure my balance is paid in full each month, I’ve never had to pay interest on my card.

Although I can only speculate on whether it’s the direct result of this practice or just my good borrowing in general, Discover has steadily increased my credit limit in recent months. Because of this, my need to make extra payments to remain under 10% usage has diminished. Still, there have been some months where my spending is heavier than normal and I bust this credit-saving method out once again.

As simple as it may seem, the practice of making multiple monthly payments to keep your credit card balance low is surprisingly effective for helping your credit score. While you may not see a huge boost, it will at least prevent you from getting dinged by a rising credit utilization. In the end, getting into this easy habit will allow you to earn rewards, avoid interest fees, and keep your credit score as pristine as it can be.

Author
Founder ~ Moneyat30
Kyle is a freelance writer - including being the head writer for Fioney.com. He also serves as editorial director for the Disney fan site LaughingPlace.com and the founder of Money@30.com. In 2015, Kyle and his wife Bekah moved from Los Angeles to Springfield MO in pursuit of greater financial freedom. Together, the pair enjoy travel, coffee, and spending time with their dog Rigby. Additionally, as of 2023, they become first-time homeowners.
Other Articles by Kyle Burbank
person standing in front of exploding fireworks
Hey You Kids, Get Off My Lawn!
With last Friday being July 4th, I decided to take a week off from posting. However, I wanted to share a story from that night (or, really, early the next morning). Backing up, last year, we learned that our neighbors loved fireworks. So we were prepared for a few hours of noise and helping our...
Venetian rewards gems
Travel Tuesday: The Venetian Surveying Guests on Possible Rewards Credit Card
Late last year, I had a chance to cross another Las Vegas Strip property off my list with a stay at The Palazzo at The Venetian. Whether because of that or because I opened a players club card with them as well, this week The Venetian sent me a survey regarding a potential rewards credit...
Allbirds 4th of July sale logo
Allbirds is Celebrating Independence Day with a 50% Off Sale
One funny thing about summer is how a sunny day can quickly turn into a heavy downpour. This is even more prominent in certain parts of the country where you may be headed on a summer vacation (I'm looking at you, Florida!). So, given that weather reality, it makes perfect sense that Allbirds would be...

Leave a Reply

Featured Articles
Hey You Kids, Get Off My Lawn!
With last Friday being July 4th, I decided to take a week off from posting. However, I wanted to share a story from that night (or, really, early the next morning). Backing up, last year, we learned that our neighbors loved fireworks. So we were prepared for a few hours of noise and helping our...
Travel Tuesday: The Venetian Surveying Guests on Possible Rewards Credit Card
Late last year, I had a chance to cross another Las Vegas Strip property off my list with a stay at The Palazzo at The Venetian. Whether because of that or because I opened a players club card with them as well, this week The Venetian sent me a survey regarding a potential rewards credit...
Allbirds is Celebrating Independence Day with a 50% Off Sale
One funny thing about summer is how a sunny day can quickly turn into a heavy downpour. This is even more prominent in certain parts of the country where you may be headed on a summer vacation (I'm looking at you, Florida!). So, given that weather reality, it makes perfect sense that Allbirds would be...
An Amex Platinum Card Revamp is Coming — And I'm Worried
Earlier this week, Chase confirmed pretty much every rumor that had been swirling for the past couple of months by announcing details on a major refresh for its uber popular Sapphire Reserve card. When this refresh launches next week (or in October for current cardholders), it will bring new credits, a reimagined rewards-earning system, and...