Credit Q&A: Will Paying More Than I Owe Help My Score?

Q: I recently had a statement credit issued for a large purchase on my credit card bill that is showing up with a negative balance owed. Will this net me extra points on my credit score? 

A: Sadly, the answer is no because that statement credit isn’t likely to show up on your credit report, says Rod Griffin, director of public education for Experian.

Instead, Griffin says, the issuer is more apt to report the balance as $0, which is certainly good for your total credit utilization ratio despite that the fact that it won’t artificially lower any other existing debts.

Similarly, you won’t earn extra points by paying early because the credit bureaus won’t be privy to that information either. 

“The lender only reports if your payment status is current or not,” says Tom Quinn, consumer credit expert for Credit.com. “They would not report if the customer has paid in advance.”

Want to know what can and can't affect your credit score? Email your questions to editors@mainstreet.com.