Pay Your Bills More Than Once a Month to Lower Your Credit Utilization
The Strategy –to lower credit utilization, make an extra credit card payment mid-month, either estimating what you owe or checking your current balance online.
The Outcome — does it work? Yes. If you pay your credit card balances in full, but wait till the end of the month to do so, high balances could look like high debt utilization in the meantime. In order to look like you’re not utilizing your credit as much as you are, pay the bill halfway through the month. This strategy works if you have one card and your trying to accumulate points, your credit card will tend to have a high balance by the time the statement arrives.
Possible Drawbacks — there aren’t many. Sending out an extra payment once a month is an extra chore and ties up your funds for a couple of weeks, but that’s about it.
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