Paying on time is the key, true. There is no line for "always pays ahead of time". But if I transmit my payment 3 days before the due date and the creditor doesn't post it until 2 days after the due date it can considered "late" and they may report the "late" payment to TransUnion/Equifax/Experian. Paying bills early is a way to avoid this issue should one of my creditors be somewhat unscrupulous. It's basically a way of ensuring I'll never be dinged for a late payment. This is a rule that my spouse and I live by because having good credit is one of the most important things in your financial life. If you want the advantages of good credit, you should work to exceed the standards set forth.