Why Weekly Pay‑offs Could Rescue Your Credit Score and Save You Money

The standard advice for building credit is simple: pay your credit card bill in full by the due date each month. But a Chicago mortgage broker argues that this timing leaves money on the table—and can keep your credit score lower than it should be.

Radio personality David Hochberg recommends a different approach: pay your credit card every Friday. He tested this method on his daughters when they opened their first credit cards last summer. Both, now aged 20 and 22, have credit scores in the 780s after just six months of credit history.

The key difference lies in how credit bureaus measure your debt. Most cardholders optimise their payments for the wrong date, which can cost them vital points without realising it.

The Statement Date Trap

Here's the issue with monthly payments: your credit utilisation ratio — which makes up roughly 30% of your FICO score — is calculated based on the balance your card issuer reports to the credit bureaus. This report occurs on your statement closing date, not your payment due date.

Most credit cards close their statements 21 to 25 days before the due date. For example, if your statement closes on the 5th of the month and your payment isn't due until the 30th, the credit bureaus see whatever balance you had on the 5th — nearly four weeks earlier.

Suppose you spend $4,500 on a $5,000 limit throughout the month. Your credit report shows 90% utilisation, even if you pay it off in full before the due date. Lenders interpret that 90% figure as a red flag because they see only the snapshot from the statement closing date, not the actual repayment.

The good news: credit utilisation resets every month based solely on your current statement balance. If your balance drops from 90% last month to 10% this month, your score can rebound within a single billing cycle.

The Friday Payment Protocol

Hochberg's solution is simple. 'Every Friday, you're going to go online and sweep the account from your Chase bank statement into your Chase credit card and wipe it down,' he told his daughters when they received their first cards.

Any bank's mobile app can facilitate this. Open it every Friday, check your balance, and transfer whatever you can afford to pay down the card. You don't need to clear the full balance — partial weekly payments help keep your statement closing balance low.

Why Friday? Hochberg chose this day because many people get paid on Fridays, making it easier to remember and align with cash flow. Any consistent weekly day works — the key is paying before your statement closes, not waiting for the due date.

The Triple Benefits of Weekly Payments

This routine offers three key advantages:

1. Improved credit score — keeping your statement closing balance low directly boosts your score.
2. Spending awareness — weekly reviews encourage you to scrutinise your spending, such as those small Starbucks purchases that add up unknowingly.
3. Lower interest payments — reducing your average daily balances decreases the interest you pay, since credit card interest compounds daily.

Hochberg's daughters saw rapid results. Both achieved scores in the 780s within six months of opening their first cards. While most people take years to reach such levels, the weekly pay-off method accelerates progress by maintaining low utilisation from the start.

Why a 780+ Credit Score Matters

A credit score in the high 700s unlocks better borrowing rates across the board. Credit card companies offer lower interest rates — typically between 15% and 18% — compared to 24% or higher for average scores. Auto loans, personal loans, and mortgages all follow similar patterns.

Hochberg observes this impact daily in his mortgage practice. He estimates that $50,000 in credit card debt costs roughly $2,000 per month in minimum payments. The same amount in mortgage debt costs just $300 to $400 per month. This significant difference stems from how credit card rates penalise borrowers more heavily, and your credit score determines which rates you qualify for.

The Method Works for All Ages

Whether you're 22 or 52, Hochberg's approach can help improve your credit. His daughters built their scores from scratch in six months, but the same method can help anyone moving from a 650 to a 750, or a 720 to a 780. The principle is simple: pay down your balance before your statement closes each month to ensure your responsible payment habits are reflected accurately, instead of being penalised by timing.

Achieving a high credit score isn't just about borrowing — it's about managing your debt smartly. Implementing this simple routine could save you money on interest and open doors to better borrowing rates, changing your financial future for the better.

Disclaimer: Our digital media content is for informational purposes only and does not constitute investment advice. Please conduct your own analysis or seek professional guidance before investing. Remember, investments are subject to market risks, and past performance does not guarantee future results.