Here's What Happens When You Pay Your Credit Card Bill Every Week

Most people set their credit card to autopay once a month and don't think twice about it. That's totally fine. But a few years ago I randomly fell into the habit of paying mine every single week instead of monthly. And I've never gone back.

It sounds a little extra, I know. But those small weekly payments come with some sneaky-good perks. Here's a few things that happen when you pay weekly.

1. Your credit score can get a boost

One of the biggest factors that makes up your credit score is credit utilization. This is basically how much of your available credit you're actually using.

If you pay your credit card bills monthly, your balance is the entire month's worth of charges. But paying weekly means your balance stays much lower the entire month.

For example, instead of paying a $4,000 credit card bill at the end of the month, you could pay $1,000 weekly. When banks report out to the credit bureaus, it will always look like you're barely using your card because the balance is never over $1,000.

Maintaining a low credit utilization ratio can lift your score and improve your chances of qualifying for the best credit card offers.

2. You'll pay less interest

Most people don't realize that credit card interest is calculated daily.

If you carry a balance, every day you wait to pay means new interest is building up. So instead of making a large payment at the end of the month, breaking it down into weekly chunks lowers your average balance -- meaning less interest owed.

Paying less interest means a quicker payoff time, too. Any available cash in your checking account should go towards paying down balances ASAP.

3. You'll build stronger money habits

I can personally vouch for this one. Paying weekly keeps you aware.

Instead of swiping freely and doing a budget check at the end of the month, checking in every week helps you stay on top of things. You can:

• Catch fraudulent charges or mistakes sooner.
• Curb overspending before it gets out of hand.
• Keep closer to your budget by treating your card more like a debit card.

Personally, I find that a 20-minute weekly check-in is way easier than a one- to two-hour monthly budgeting session. Quickly paying bills and reviewing transactions helps me feel on top of my finances all year long.

4. Late payments become almost impossible

One late payment can tank your credit score and ding you with a fee. But if you're paying weekly, it's almost impossible to accidentally miss a real due date.

Of course, setting up auto-pay is also an option to never miss a bill. Just make sure it's set up to pay off the "full statement balance," not just the minimum due.

So… should you pay weekly?

Not everyone needs to pay weekly. If you always pay your bill in full every month and your credit is already solid, sticking to monthly payments is fine.

For me, I like the peace of mind of not being in debt or owing money to anyone for too long. It means my bills will never balloon out of control, and my credit score benefits too.

Weekly payments might make sense if you:

• Have a high utilization ratio and want to bring it down.
• Want to cut down interest if you're carrying a balance.
• Like staying on top of your spending.
• Have accidentally missed payments and don't want to risk it again.

Pro tip: If you're looking to level up beyond just payment strategy, check out our list of the best rewards credit cards right now. Pairing the right card with good habits is where the real magic happens.