If you pay your credit card bill at least once a month, you’re probably doing just fine — you’re making payments on-time and you should have nothing to worry about.
But what if you wanted to up that to, say, once a week?
Generally, the more frequently you pay off your balance, the better off you’ll be. Here’s what would happen if you paid off your credit card every seven days or so.
Late payments become virtually impossible
If you’ve ever made a late payment on any kind of bill, you probably know how costly it can be.
But as you’ve probably guessed, if you’re paying your credit card off weekly, it’s pretty much impossible to miss a monthly due date. Even if you forget a week or two in between, you should be totally fine.
Another way to avoid late payments is by setting up auto-pay. Just make sure it’s set up to pay off your full statement balance, not just the minimum amount.
You’ll pay less interest
Did you know that credit card interest is calculated on a daily basis?
It’s true — if you’re carrying a balance, every day you wait to pay makes for new interest piling up. So instead of one large payment at the end of the month, aim to break it into weekly chunks to lower your average balance and pay less interest overall.
Of course, if you’ve been paying off your balance in full, this won’t be an issue. But if you are, it’s nice to know that paying off small amounts more quickly is an option.
You’ll build better financial habits
If you find a way to pay off your credit card bill every week, I reckon you’d be pleasantly surprised by the knock-on effects. That’s because paying weekly isn’t just helping you avoid interest and late fees — it’s actually making you more aware of what you’re spending on.
With just a few minutes a week, you can scan your recent card history for mistakes, fraudulent charges, and more. It also turns your budget into a day-by-day challenge, not just some lofty monthly goal.
Your credit score can get a boost
Now for maybe the best part: Paying off your card more regularly lowers your credit utilization ratio — the percentage of available credit you’re currently using. That means a better credit score — which means better card offers, better loan terms, and more.
For example, instead of paying a $2,000 bill in one fell swoop, you could pay $500 a week for four weeks. That way, even though your total spending is the same, you’re using way less of your available credit as the weeks roll on.
Weekly card payments aren’t a must for everyone. If you’re already paying your statement balance in full each month, you’re probably doing just fine.
But if you want to…
- Lower your credit utilization ratio (and improve your credit score)
- Cut down on late payments and interest charges
- Keep a closer eye on your spending
Then weekly card payments are absolutely worth doing.
Ready to take your credit card game even further? Check out our list of the best rewards credit cards today to start saving.
