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Taiwo266

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Can my credit score drop for paying too fast?

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What do you mean by paying too fast? You should always let one credit card report a small balance at statement time, it is fine to pay it off before the due date though to avoid paying interest. So paying before the statement date on your cards and not reporting any revolving balance would ding your scores for not showing any revolving activity for the month. When you pay off and close installment loans your scores can suffer if you have no other installment loans reporting. In general though, paying bills early does NOT hurt your score.

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There are two dates to consider on any credit card account.  The first is the 'closing date' when the company tabulates all the charges made in this billing cycle to generate the bill, then there is the 'due date' which is when the company expects to have payment recorded.  If you pay at any time between the 'closing' date and the 'due' date, you're fine.  Get the bill, send out a check or online payment (pay in full is best) and you're in great shape.  Pay online before the closing date and the 'usage' doesn't show up, and that can 'ding' your score.  Don't leave any balance because you are paying interest on that, which is counter-productive.  Credit can help you save money when used right.

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