How best to pay credit card bill to improve credit rating?


I recently got a Credit Card just for the points (all because of getting an ad from Point Hacks).
The bonus points is the only reason I got it. I can easily pay it all off today if I wanted to. (That being the way I’d always like to deal with Credit Cards).
But I’ve since realised I can also use it to improve me Credit Rating.
My understanding is that if I continue to pay it off, the good repayments are now (since late last year in Australia) reported to my credit file. Therefore improving it.

My question is:

  1. Is it better to pay it off in full now/asap/straight after payments are made on it; or
  2. Is it better to pay it off at the end of each month on whatever their bill says?

No experience with credit cards so I apologise if it’s a dumb question.

Oh also, I’d prefer to pay it off asap (as I maxed it out straight away) so i can keep buying stuff on it and getting points.
So the ideal situation for me is, buy stuff on it to get points and pay it off each time the next day. Is this the best way of doing it?

Thank you :slight_smile:

Hi phavatar,

I use, and recommend, the Get Credit Score website. Click on “Articles”, and then “Credit Health” to read heaps of helpful stuff about how to improve your credit score.

I’m no expert but my reading of the various articles (and I’ve read lots!) is that what’s most important is not being late in your repayments, and paying off at least the minimum amount each month. But by immersing yourself in the website you’ll find a whole lot of answers even to the questions you didn’t know to ask!

Re your other point about paying off credit card debts straight away in order to maximise points earning: that’s a perfectly good strategy if it works for you. The big caveat is that some credit cards have a monthly cap on points earning. Make sure your card doesn’t have a monthly cap. But the biggest thing to avoid is not paying off your credit card before the end of the interest-free period.

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Thank you @sixtyeight ! :slight_smile:
I can see you’re a bit of a legend on this Point Hacks community here. Props for doing such a great job! :slight_smile:

The interest free period doesn’t effect me because I always have the amount I spend on credit cards in the bank anyway. Too risky otherwise.
That’s helpful info about the monthly cap earnings! Thank you. I’ll have to find out what it is.

Right, I guess I’ll get onto reading those articles :slight_smile:

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