This may be a stupid question, but I am just getting back to CC's after a very long time.
My account due date is the 8th, statement is the 11th.
I paid more than what they said was the statement balance when I went to pay the amount due.
But when I look at my account it still shows the previous statement balance as it was before the payment (even after the payment cleared and posted).
Is that normal? I am afraid I am missing something as I still use the card.
Then it has the "current balance", that is what I need to pay down before the 11th correct?
So really I need to pay down the whole current balance around the due date (8th / 11th)?
Maybe I am just worn out, but for some reason I am having issues trying to get this right.
Yes, it works that way for them. If you left a small balance on another card reporting, you could pay off Barclay's. I always pay way before the due date but you don't really have to. It will all report correctly to the CRA's.
Statement balances do not reduce after you pay them off. The statement balance is the balance on the card the last time your statement cut. Assuming a due date of the 8th and a statement date of the 11th, as you stated, this is how it works.
May 1 - Outstanding balance = $500.
May 3 - Paid $500; Outstanding balance = $0.
May 5 - Spend $500. Outstanding balance = $500.
May 8 - Due Date. $0 due, but $500 outstanding balance.
May 11 - New statement cuts. New statement balance = $500.
May 20 - Spend $500. Outstanding balance = $1000. Statement balance = $500.
May 25 - Pay $1000. Outstanding balance = $0. Statement balance = $500.
June 11 - New statement cuts. Statement balance = $0.
Hopefully the above helps clarify how it works. Statement balance will always show the balance on the last statement cut date. Outstanding balance (or current due or some variant) is the total amount due. If you pay the statement balance in full, you won't get charged interest even if the current due is not paid in full. The CC system is based on the mail in payment system. Since it was created before the internet, instant online payments were not feasible. Thus, you pay your last months statement balance before this months due date, giving you time to mail in the payment.
Thanks all, really appreciate it, I wanted to be sure I was not screwing up.
So I paid the previous statement balance (was about 110.00, paid 150.00), so no interest from last month.
I think I was getting mixed up due to having new charges on the card and not knowing for sure if the payments I was making went first to that previous balance.
Now I need to pay down the "current balance" so that statement on the 11th shows zero or close to that.
I really need sleep I think .