Credit card billing cycles are typically 29 to 31 days, and the last day is your statement closing date.
The balance that remains on your card as of the statement closing date is usually reported to the credit bureaus a day later, although it varies by card issuer. You can call your credit card issuer to find out when they typically report to the credit bureaus. Aim to pay off your entire balance before this reporting date, Brown says. By eliminating, or at least greatly reducing, your balance, you'll lower your credit utilization rate before it's reported.
This is key because your credit utilization, which is the amount of your total available credit that you're currently using, accounts for 30% of how your credit score is calculated,Lenders like to know how well you're managing your loaned funds, which is why financial experts typically recommend that you don't use more than 30% of your available credit. It shows you're responsible for paying it back on time.
If you aren't able to pay off your full balance by the reporting date, try to pay at least 10% more than the minimum amount due, Brown says. This can help you chip away at your balance faster.Unfortunately, there aren't any quick fixes when it comes to increasing your credit score. The good news is that Gen Zers and millennials tend to have decent ones already.