Home › Business › Right Way to Save Your Credit...

Right Way to Save Your Credit Score, Pay Before the Billing Date

Credit Card Due Payment

Adarsh P

February 18, 2026 at 6:14 PM IST · 2 min read

Credit Card Due Payment: Credit cards have become an integral part of our lives these days. Whether it’s online shopping, travel bookings, or emergency expenses, cards come in handy. But when it comes time to pay the bill, the question often arises: should you wait until the due date or pay in advance? Let’s explore this in detail.

The Importance of Paying on the Due Date

NPS vs. OPS – Learn Which Pension Scheme Is Most Beneficial Read More → A Big Gift for Customers – Bank Reduces MCLR, EMIs Will Be Lower Read More →

Credit card users must understand that making timely payments is crucial. Paying the full balance by the due date protects your credit score. Paying as soon as the statement is generated or on the last day doesn’t negatively impact your score.

Disadvantages of Late Payments

If a payment is made after the due date, banks report your payment history to credit bureaus. In India, this data is accessed by agencies like TransUnion CIBIL. Even a single late payment can result in a negative entry on your credit profile, which could impact future loan or new credit card approvals.

Credit Utilization and Its Impact

The credit utilization ratio indicates how much of your total limit you have used. Experts believe that utilization below 30 percent is acceptable. For example, if your limit is ₹100,000 and you have an outstanding balance of ₹90,000 by the billing date, this would be considered high utilization. Many people make payments before the billing date to reduce the reported due date and positively impact their score.

Why is making a payment on the last day a risk?

Technically, making a payment on the last day of the due date isn’t wrong. If the transaction is successful, there’s no penalty. However, even a one-day delay due to network failure, bank server issues, or technical glitches can result in late fees and interest.

The right strategy is crucial

It’s best to make payments two to three days before the due date. Also, utilize your credit limit wisely. The habit of making regular and timely payments not only strengthens your credit score but also helps you in availing loans, home finance or other credit facilities in the future.