Anonymous asked in Business & FinanceCredit · 1 month ago

Is it bad to pay your credit card early? ?

I have a credit card that I use to purchase things I need. I don’t like using credit, so I avoid it as much as I can. I use to pay for my credit card bill in advance, but someone told me that is bad for my credit score. For example, if I expected to have $200 charged to my card this month, I would make sure my credit balance is -$200. It’s almost as if I was using a debit card. Is this bad for my credit score? I bank with chase is that makes a difference.

11 Answers

  • 4 weeks ago

    no, but pay the bill by the due date, do not pay early.

  • 4 weeks ago

    Its not a problem with your credit score  

  • 4 weeks ago

    Why would you run a negative balance on a credit card?  That makes ZERO sense. The only reason you even have a credit card is to pay for purchases you don't have cash for. Paying it ahead is not a sensible thing. Paying the BALANCE every month is the best thing you can do. By putting money onto your card to pay a "future" balance, you take it out of the bank where it will be earning interest. A credit card is not a bank. You already HAVE a bank. If you don't like using credit, then STOP. Pay cash. Use checks. Use money orders. Or use PayPal or Venmo.

    Better yet, have your bank set up an automatic payment to the credit card every month so you know you will not have to worry about it. But stop using the credit card as a bank. It's riskier, it's a lot of extra work, and it may keep your score lower than it should be because you aren't transacting.  

  • 1 month ago

    No harm done by paying early.  Zero harm to your score.  

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  • 1 month ago

    Paying early will do nothing to your credit.

  • Anonymous
    1 month ago

    No, its not bad.  Is it bad that you don't use your brain? Yes, it is.

  • 1 month ago

    Someone was wrong.  It is not bad.

  • 1 month ago

    That's a STUPID FINANCIAL move.

    That extra $200 will be sitting in THEIR BANK ACCOUNT getting interest...leave it in YOUR BANK ACCOUNT and earn your own interest.

    Granted, today's banking rates won't get you much interest, but at least it will be YOURS and not THEIRS.

    Years ago (when rates were up), I was earning over $4k a year in interest on my money.  Now that I have even more money I'm only getting about $1600/yr.  I only have to pay taxes on the interest.

    FWIW, I haven't paid 1 penny in interest or a fee on a credit card in over 30 years.The one thing you SHOULD do every month is pay your credit cards off in full.  If you can't then don't use them.

    Look at it this way...with no interest (to pay) it's like getting an interest-free loan from your bank every month. 

    While I'm on the issue of money, if you ever need to buy large ticket items like a fridge, a bed, washer/dryer, furniture, riding lawn tractors, etc., look for "12 Months Same As Cash (SAC)" deals.

    Divide your total by 11 (not 12) to pay it off early and not pay any interest.  Again, it becomes an interest-free loan.

    I've been totally debt-free since 2006...I paid my house off in just over 2 years.  ; ' )

  • Pearl
    Lv 7
    1 month ago

    i dont think so

  • 1 month ago

    It's not "bad", it's simply showing no usage because you never have a balance which means you aren't getting the positive benefits.

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