The Best Way to Pay Off Bills for Good Credit

Credit card bills eat away at your checking balance, but when paid on time they gradually improve your credit score. Credit lenders report your payment history to one of the three major credit reporting agencies, which are TransUnion, Equifax and Experian. Included in the report is the length of time your account has been open, the number of late payments (if any) and the total amount of credit available. As you continue to pay your bills, your credit report shows you are responsible with credit and slowly raises your credit score.

Instructions

1

Pay your bills one to two weeks before the due date. In the event there is a problem with your payment, the problem can be corrected and won't make you late on your payment.

2

Pay more than the minimum amount. Although the minimum is enough to keep your account in good standing, paying twice the minimum reduces the size of the bill faster and decreases the overall amount of interest paid.

3

Use the card sparingly. Part of paying off a bill is to avoid using the credit card, as frivolous spending sets you back when budgeting your finances. According to "The Complete Credit Repair Kit," a credit card should only be used if you already have the same amount of money in your checking account.

4

Pay off your bills in full every month, if possible. Interest charges add up on accounts that have a balance, which keeps the balance at a high level.