Improve Credit Score by Making Multiple Payments On Your Credit Card Each Month

Making Multiple Payment On Your Credit Card Every Month Might Help To Keep The Credit Utilization Low

Making multiple payments in a month soon after the charge your credit card with a substantial amount means that you will be carrying a lower balance on it when the billing cycle draws to a close.

While the number of payments that you make in a month on a credit card is not directly responsible for your credit score it may help if you tend to carry large balances on your credit card or tend to use it heavily and close to its maximum credit limit every month.  The reason is that the credit score calculation model considers the ‘debt utilization ratio’ which is the ratio between the amount of credit available to you and the portion of it is that you actually utilize.

Carrying high balances on a credit card can affect your credits for allegedly if it is one of the primary factors in your credit score calculation. Carrying high balance on your credit card signifies a greater risk to the lender increase due to some unfortunate reason you are unable to make the payment.

The other reasons why multiple payments might have the credit score is by making multiple payments you’re likely to be paying more than a minimum payment.  If you are carrying a balance on a credit card, you are more likely to end up paying off this debt faster. As the balance on your credit card decrease the debt utilization ratio will increase as well.  If you are in the habit of making multiple payments on your credit card than you are less likely to miss a payment.  Since timely payments and low balances are key factors that determine good credit scores making multiple payments on a credit card might have a positive effect on your credit score.