How to CORRECTLY pay your credit cards

Paying your credit cards correctly is crucial for maintaining a healthy credit score. Start by understanding your due date and statement date. The due date is often the minimum payment required to avoid late fees, while the statement date marks when your balance is reported to credit bureaus. It's key to reduce your balance to 1-4% of your credit limit before the statement date. For instance, if your limit is $300, aim to keep a balance of just $3 to $12. This practice reflects low credit utilization, which has a significant impact on 35% of your FICO score. After your statement date, ensure you pay your balance down to zero. This strategy not only helps you avoid interest but also maximizes any rewards on your card. By repeating this cycle monthly, you can significantly improve your credit standing while enjoying the benefits of credit rewards. Moreover, consider setting notifications on your calendar to remind you of these key dates. Keeping tabs on your credit utilization is equally important – it's advisable not to exceed the 30% threshold. By mastering the timing of your payments and understanding how credit utilization works, you can effectively manage your credit cards to not just maintain, but improve your credit score over time.