General Credit Card Usage Question

[Anonymous]

Ok so I am new to the forum and I have been reading lots of great information. I believe I understand how the proper usage should be for credit cards but i want to make sure I am understanding it. Any advice would be appreaciated.

So I have my CC and the statement date is the 22 of each month and my DD is the 18th. If I am understanding correctly I can charge as much as I want as long as I pay it down to under 10% before the statement date. Then make sure that it is paid off entirely before the due date. It looks like it reports to CA around the 20th of each month.

Please advise if I am not understanding this properly.

[Anonymous]

For ONE (1) card yes. All the rest should be at $0 before the statement date. The balance at the statement date is what reports

[Open123]

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@Anonymous wrote:

So I have my CC and the statement date is the 22 of each month and my DD is the 18th. If I am understanding correctly I can charge as much as I want as long as I pay it down to under 10% before the statement date. Then make sure that it is paid off entirely before the due date. It looks like it reports to CA around the 20th of each month.

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If you're goal is to maximize scoring, then you need to pay (before the statement cuts on the 22nd) and bring Utility down to your preferred level (10% in this case).  After the 22nd, your statement will cut and pay before the due date of the 18th the following month.

Bear in mind, your payment must post before the 22nd.  I'd play it safe by having the payment post by no later than the 20th.  Also, if your goal is to maximize scoring, don't make any charges close to the 22nd, since a late posting charge will appear on your balance.

[Anonymous]

Give yourself a few days for the long and short months some banks( comenity 32 days) have longer billing cycles and some dead on month to month. I would get highlighter color out out the whole week for zero purchases personally.

[NRB525]

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@Anonymous wrote:

Ok so I am new to the forum and I have been reading lots of great information. I believe I understand how the proper usage should be for credit cards but i want to make sure I am understanding it. Any advice would be appreaciated.

So I have my CC and the statement date is the 22 of each month and my DD is the 18th. If I am understanding correctly I can charge as much as I want as long as I pay it down to under 10% before the statement date. Then make sure that it is paid off entirely before the due date. It looks like it reports to CA around the 20th of each month.

Please advise if I am not understanding this properly.

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Well, Charge as much as you want... staying within the available listed credit limit if it is on a credit card.

If by "Paid off entirely" you mean, you are paying the remainder from that prior statement amount by the statement due date, yes, to pay in full completing the payment of the prior statement amount is correct.

For a Payment Due date of the 18th, you want to count up the amounts you have paid since the last statement printed, and make sure that is at least the prior Statement Balance amount. Then, when the statement prints on the 22nd, that statement on the 22nd would be, ideally, only new charges since the last statement date.

The gain in points in a FICO 08 score can be rather small when trying to balance cards to zero, if those cards are showing balances that will be paid in full. There are some points to be gained, but unless one is apping very soon, paying ahead of the statement print to get cards to zero is not going to impress anyone except your own view to the card balances and FICO score.

[Chris679]

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@Anonymous wrote:

Ok so I am new to the forum and I have been reading lots of great information. I believe I understand how the proper usage should be for credit cards but i want to make sure I am understanding it. Any advice would be appreaciated.

So I have my CC and the statement date is the 22 of each month and my DD is the 18th. If I am understanding correctly I can charge as much as I want as long as I pay it down to under 10% before the statement date. Then make sure that it is paid off entirely before the due date. It looks like it reports to CA around the 20th of each month.

Please advise if I am not understanding this properly.

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You are understanding this properly

[Anonymous]

Some people say only have 1 card report a balance, and let it report under 10%. I think it's negligible if you have multiple cards report, as long as your overall utilization is under 10%. 

Maybe its that way with my file, but I usually have 3-4 cards reports a balance because I don't care to try to time it out, plus all my cards have a purpose that I utilize weekly. It's not beneficial to try.

So, with that being said... Your main focus should be to know when your billing cycle ends, and make sure your balance is under 10% when that day comes.