I’m 18 and just got my first credit card, a Capital One Platinum with a $1,000 limit.
My last statement closed on April 21, and my app says my minimum payment due May 16 is $0 and ‘minimum payment satisfied.’
Since then, I’ve spent $231.62 on the card. I get paid about $190 this week since I work at Publix and my hours vary.
I know I technically don’t owe anything yet for May, but should I still pay down most of the balance now to keep utilization low, or is it fine to wait until the next statement?
I was thinking maybe this week I pay $50 and next week I pay $100 since I get paid weekly.
I’m trying to build good credit habits and avoid interest since this is my first card.
Can I pay my credit card early?
byu/NaturessChild inCreditCards
Posted by NaturessChild
9 Comments
You can pay anytime you want, even multiple times a week if you feel like it. Paying early keeps your utilization lower when the next statement cuts, which is good for your score. Your payment plan of $50 this week and $100 next week makes total sense – just make sure you pay off whatever balance is left before the due date to avoid interest.
Utilization doesn’t have any permanent effect on your credit history. Your best bet is to just use the card as intended. What is the statement cuts, and then pay off the statement balance. In fact, some banks can look negatively on multiple payments, especially on a brand new account.
You need to make sure you’re paying the Statement Balance by the Due Date.
The Minimum payment will keep your account current but interest will be charged on the remaining amount.
!basics
Depending on the lender they might not necessarily like that. I’d recommend setting the money aside as you spend it and wait for it to post on a statement as that’s how they gauge your usage and can assess if they should give you automatic credit limit increases. It also helps you stay “liquid” so I’d advise against it just be responsible and spend what you can afford.
Of course…
If you want to develop good habits early then the first habit you need to develop is to not try to micro manage your utilization. You’re already overthinking. Simply use your card organically for your normal every day spending. Exactly as you would if it was a debit card. At the end of your billing cycle you’ll get your statement totaling all your charges. Pay your statement balance in full by the due date. That’s it. That’s what lenders consider responsible credit management. Making multiple payments per month is not necessary and can even be considered a red flag with new accounts. You wouldn’t pay your electric company multiple times per month as you use electricity right? Same principal with a credit card.
Your goal should be getting a credit limit increase with your current card then further down the road, acquiring a card that actually earns you rewards. Trying to keep utilization low on a card with an already low limit is impractical and counter productive to what you should be trying to accomplish. Higher utilization along with paying your balance in full will prompt more significant credit limit increases. Higher limits in turn lower utilization. That’s how that’s supposed to work.
Do yourself another favor and don’t hyper focus on your credit score. Your profile is thin. It’s going to fluctuate. That’s normal. If it gives you anxiety then don’t check it. Focus on responsibly managing your credit as stated above for at least 6 months.
Just wait until you get your statement. I used to work at Publix too
Autopay, statement balance, on or a couple days before the due date.
Unless you’re purposely trying to reduce reported utilization or credit cycling, it doesn’t need to be more complicated than this.
I know you happen to be referencing the Minimum Payment as $0 because that’s what you’re seeing on the app, but the minimum is $0 because the Statement Balance was $0. If you did what you’re asking about and paid early last month then that’s why your statement balance was $0.
If you can have the discipline to keep the money you earn in the bank until the cc bill is due then you can use and pay your credit card as it’s designed to be used/paid: once a month and you pay the full statement balance by the due date. So in your case that would mean don’t make any payment in May and let your May statement close naturally and report your balance to the credit bureaus. Then you pay that full statement balance (ignore the minimum and always pay the statement balance!) by the due date.
Utilization is temporary, read the automod comment about that to learn more. At this stage you want to develop good habits with your spending and credit. So again assuming you won’t see money in the bank and spend it using your debit card when it actually needs to wait to pay your cc, then simply wait and turn on autopay to pay the statement balance by the due date each month.