Someone told me that it improves your credit score/rating if you pay bills earlier than the due date. For example if your credit card bill comes in on the 1st first, is due on the 25th, and you pay it on the 5th (20 days early) rather than the 25th (due date) it improves your score/rating. That this is the same for mortgages, car payments, etc.
I always pay mine on the due date or a day or two before. I thought it was good cash management. Not that I have a lot of cash to manage…
Does anyone know for a fact if this is true?
I wouldn’t bet my house on it, but I want to say that I heard once that it doesn’t reflect early payments, only that the payments were made as agreed. Sometimes it’s even beneficial to apply for one of quick cash loans online to pay your bill on time. Also, I’m pretty sure, your report won’t reflect if you pay more than the amount due – only, again, that it was paid as agreed, or “within terms”.
As for me, I do pay up early, and I add another payment in the middle of the month. It keeps it going down and down and down…..