Reply
Contributor
tboy1977
Posts: 221
Registered: ‎07-11-2012

Re: Statement Cut off date

Meaning if your statement cut-off date is on the 15th for example,anything posting on the 16th is next statement.  With the exception of holidays (rarely), a statement cut-off date is cast in stone.  some financial institutions allow you to pick your due date (and by extension the cut-off date) but it doesn't waver from month to month.

Starting scores: EQ 420, EX 421, TU 405 (Jan 2011)
Bk Ch 7 Discharged Mar 2011
Current scores: EQ 456, EX 534, TU 411 (Aug 2012) FICO (8/2012 -- EQ 564, EX 584 (from BofA) TU 551)
Goal scores: EQ 700+, EX 700+, TU 700+

Credit accounts: 30% APR auto loan (Jan 2012), Secured [CapOne (3K), PNC (1300), NFCU (1K), Coke (2500)] and Target (200)
Senior Contributor
Walt_K
Posts: 3,065
Registered: ‎11-02-2009

Re: Statement Cut off date


1Health wrote:

Okay so on the 5th is my due date

 on the 8th is my statment cut off date

 

i will be PIF every time to show good payment. 

so my balance will always report as 0 and that won't help my UTI will it????

 

so what can i do purchase something between the 5th and the 8th?


I think this is less confusing when you ignore the due date.  The due date is the date payments are due for the previous statement that was closed on the 8th.  The credit reporting for that is over, it's already reported.  Just think about your bill.  Whatever number ends up on your bill is what is going to get reported. 

To further illustrate, you are saying that you are going to PIF on the 5th and then wondering whether you need to make additional charges before the 8th.  Well that would assume that you made no other charges between thee 8th of last month and the 5th.  If you've still been using your card, you're already going to have lots of other charges on the card that will post to your next statement.  If by PIF you mean that you are going to pay not only your balance on your last bill, but also all outstanding charges that will post on your next bill, then yes, you would need to make an additional charge in order to have a non-zero utilization.  But really that's overpaying.  PIF just means paying the full balance that was due on the last statement. 

 

In any event, this is much easier if you just leave due dates out of it.  Whatever is on your bill is what is going to report to the CRAs.


Starting Score: ~500 (12/01/2008)
Current Score: EQ 681 (04/05/13); TU 98 728 (01/06/12), TU 08? 760 (provided by Barclay 1/2/14), TU 04 728 (lender pull 01/12/12); EX 742 (lender pull 01/12/12)
Goal Score: 720


Take the FICO Fitness Challenge
Valued Member
1Health
Posts: 39
Registered: ‎08-02-2012

Re: Statement Cut off date


Walt_K wrote:

1Health wrote:

Okay so on the 5th is my due date

 on the 8th is my statment cut off date

 

i will be PIF every time to show good payment. 

so my balance will always report as 0 and that won't help my UTI will it????

 

so what can i do purchase something between the 5th and the 8th?


I think this is less confusing when you ignore the due date.  The due date is the date payments are due for the previous statement that was closed on the 8th.  The credit reporting for that is over, it's already reported.  Just think about your bill.  Whatever number ends up on your bill is what is going to get reported. 

To further illustrate, you are saying that you are going to PIF on the 5th and then wondering whether you need to make additional charges before the 8th.  Well that would assume that you made no other charges between thee 8th of last month and the 5th.  If you've still been using your card, you're already going to have lots of other charges on the card that will post to your next statement.  If by PIF you mean that you are going to pay not only your balance on your last bill, but also all outstanding charges that will post on your next bill, then yes, you would need to make an additional charge in order to have a non-zero utilization.  But really that's overpaying.  PIF just means paying the full balance that was due on the last statement. 

 

In any event, this is much easier if you just leave due dates out of it.  Whatever is on your bill is what is going to report to the CRAs.


Sorry but i am still confused!! I don't want to pay intrest and i want to pay my bill in full on the due date every month.

Will i have 0 percent utilization doing this? ha simplist way i think my brain can understand i guess.

 

 


Starting Score: EQ: 651 FICO TU: 615 FICO EX: 629 FAKO (08/06/2012)
Current Score: EQ: 684 FICO TU: 615 FICO EX: N/A FAKO
Goal Score: 760+ Across Board


Take the FICO Fitness Challenge
Senior Contributor
Walt_K
Posts: 3,065
Registered: ‎11-02-2009

Re: Statement Cut off date


1Health wrote:

Walt_K wrote:

1Health wrote:

Okay so on the 5th is my due date

 on the 8th is my statment cut off date

 

i will be PIF every time to show good payment. 

so my balance will always report as 0 and that won't help my UTI will it????

 

so what can i do purchase something between the 5th and the 8th?


I think this is less confusing when you ignore the due date.  The due date is the date payments are due for the previous statement that was closed on the 8th.  The credit reporting for that is over, it's already reported.  Just think about your bill.  Whatever number ends up on your bill is what is going to get reported. 

To further illustrate, you are saying that you are going to PIF on the 5th and then wondering whether you need to make additional charges before the 8th.  Well that would assume that you made no other charges between thee 8th of last month and the 5th.  If you've still been using your card, you're already going to have lots of other charges on the card that will post to your next statement.  If by PIF you mean that you are going to pay not only your balance on your last bill, but also all outstanding charges that will post on your next bill, then yes, you would need to make an additional charge in order to have a non-zero utilization.  But really that's overpaying.  PIF just means paying the full balance that was due on the last statement. 

 

In any event, this is much easier if you just leave due dates out of it.  Whatever is on your bill is what is going to report to the CRAs.


Sorry but i am still confused!! I don't want to pay intrest and i want to pay my bill in full on the due date every month.

Will i have 0 percent utilization doing this? ha simplist way i think my brain can understand i guess.

 

 


You're confusing two concepts.  First, what is reported to your credit report.  The answer to that is the balance that is on your bill.  Second, how do you avoid paying interest.  The answer to that is by paying the balance on your bill before the due date.

If you have additional charges after your statment closed, in your case after the 8th, you can still pay your bill in full and not have 0% utilization.  Here's an example.  On the 8th your statement closes with $50 in charges.  Your bill is due on the 5th of next month.  Between the 8th and the 5th  you charge $50 on your card.  By the 5th, you pay the $50 bill in full.  You still have $50 in outstanding charges that will post to your next month's bill.  And you won't pay any interest on that becuase you've been paying your bill in full all along.  You're confusing last month's charges and credit reporting with charges on the next billing cycle. 


Starting Score: ~500 (12/01/2008)
Current Score: EQ 681 (04/05/13); TU 98 728 (01/06/12), TU 08? 760 (provided by Barclay 1/2/14), TU 04 728 (lender pull 01/12/12); EX 742 (lender pull 01/12/12)
Goal Score: 720


Take the FICO Fitness Challenge
Valued Member
1Health
Posts: 39
Registered: ‎08-02-2012

Re: Statement Cut off date


Walt_K wrote:

1Health wrote:

Walt_K wrote:

1Health wrote:

Okay so on the 5th is my due date

 on the 8th is my statment cut off date

 

i will be PIF every time to show good payment. 

so my balance will always report as 0 and that won't help my UTI will it????

 

so what can i do purchase something between the 5th and the 8th?


I think this is less confusing when you ignore the due date.  The due date is the date payments are due for the previous statement that was closed on the 8th.  The credit reporting for that is over, it's already reported.  Just think about your bill.  Whatever number ends up on your bill is what is going to get reported. 

To further illustrate, you are saying that you are going to PIF on the 5th and then wondering whether you need to make additional charges before the 8th.  Well that would assume that you made no other charges between thee 8th of last month and the 5th.  If you've still been using your card, you're already going to have lots of other charges on the card that will post to your next statement.  If by PIF you mean that you are going to pay not only your balance on your last bill, but also all outstanding charges that will post on your next bill, then yes, you would need to make an additional charge in order to have a non-zero utilization.  But really that's overpaying.  PIF just means paying the full balance that was due on the last statement. 

 

In any event, this is much easier if you just leave due dates out of it.  Whatever is on your bill is what is going to report to the CRAs.


Sorry but i am still confused!! I don't want to pay intrest and i want to pay my bill in full on the due date every month.

Will i have 0 percent utilization doing this? ha simplist way i think my brain can understand i guess.

 

 


You're confusing two concepts.  First, what is reported to your credit report.  The answer to that is the balance that is on your bill.  Second, how do you avoid paying interest.  The answer to that is by paying the balance on your bill before the due date.

If you have additional charges after your statment closed, in your case after the 8th, you can still pay your bill in full and not have 0% utilization.  Here's an example.  On the 8th your statement closes with $50 in charges.  Your bill is due on the 5th of next month.  Between the 8th and the 5th  you charge $50 on your card.  By the 5th, you pay the $50 bill in full.  You still have $50 in outstanding charges that will post to your next month's bill.  And you won't pay any interest on that becuase you've been paying your bill in full all along.  You're confusing last month's charges and credit reporting with charges on the next billing cycle. 


okay still don't quite understand i don't know why i'm making this more complicated in my head but it's just not making any sense sorry... i think ill just wait for my statement and look on my credit report to see if i can see how i am seeing this wrong.. Thanks a lot for trying.


Starting Score: EQ: 651 FICO TU: 615 FICO EX: 629 FAKO (08/06/2012)
Current Score: EQ: 684 FICO TU: 615 FICO EX: N/A FAKO
Goal Score: 760+ Across Board


Take the FICO Fitness Challenge
Contributor
tboy1977
Posts: 221
Registered: ‎07-11-2012

Re: Statement Cut off date

I think we are making a mountain out of a mole hill

 

During the month, charges, payments and like are added and subtracted from the account's ledger.  At a certain point, the bank has to close the ledger for one month and start the next.  It's sort of like running out of room on a page in a notebook and having to turn it.  Or like the calendar.  You run out of April after 30 days and have to start on May :-)

 

Your due date is usually a fixed day of the month (say 5th) that your payment has to be in.  However, to be FAIR, the credit card issuer gives a couple days leeway to make sure a mailed check makes it and so forth.  If you mailed a check the proper week before and due to whatever happened with the post office, your payment didn't arrive until the 6th, would you be happy with paying a late fee and the payment missing your statement?  No, probably not.  So the issuers give a small window after the due date before closing the statement.  On the end of day on statement day, interest and fees (bank ticks) are added to your ledger after any charge or payment postings and the ledger is closed.

 

In real world examples, my CapOne is due the 25th.  The statement closes on the 28th.  Anything posting after the 28th (even if charged before), posts on the next statement.  PNC also is due on the 25th, but the statement closes on the 30th.  NFCU is due on the 10th, but closes on the 13th.  Now with CapOne and PNC, I don't see the changes from the credit report until after the 2nd.  But the information the CRAs show on the 3rd is as of the close of business on the [28th for Cap1 and 30th for PNC].  If you want to pay in full,  it is better to focus on the due date, but it is THE STATEMENT date that the CRAs will see. 

 

So question in review:  Say you have a due date of the 5th and your statement closes on the 9th.  If your balance is $200 on the 5th, you make a payment on the 7th for $225 and your statement closes on the 9th, what will report to the CRAs (assuming no interest or fees added)?  The answer is zero, because your statement will show a balance of (25.00).

Starting scores: EQ 420, EX 421, TU 405 (Jan 2011)
Bk Ch 7 Discharged Mar 2011
Current scores: EQ 456, EX 534, TU 411 (Aug 2012) FICO (8/2012 -- EQ 564, EX 584 (from BofA) TU 551)
Goal scores: EQ 700+, EX 700+, TU 700+

Credit accounts: 30% APR auto loan (Jan 2012), Secured [CapOne (3K), PNC (1300), NFCU (1K), Coke (2500)] and Target (200)
Senior Contributor
Walt_K
Posts: 3,065
Registered: ‎11-02-2009

Re: Statement Cut off date

Let's say your August 8 bill reads $50, and says you must pay by September 5.  That means $50 will get reported to the CRAs as your balance.  That's done and over with.  You can't do anything to change that balance until the following month when your next bill is generated.  That's why I'm saying to not really concern yourself with the due date.  It's a separate item that has to do with when you need to pay your bill to avoid interest and late penalties.

 

Ok, now you pay your $50 before August 5.  Good, no late fees, no interest.  Whether you will now have a $0 balance on your next bill, and therefore 0% utilization on your next credit report, depends on what you've been doing with your card.  Did you use your card on the 9th, 10th, 11th, etc?  If you did, then paying your last month's bill in full, i.e., paying $50, is not going to zero out all of your charges.  All those charges after the 8th are going to post.  And those charges will be on the next bill, which will be on the next report, so again, not 0% utilization.  The only way you would be at $0 after paying by the 5th is if you hadn't used your card after your last month's bill, or if you paid more than the balance due on your bill.

 

(I hate that apparently there is some problem that fails to recognize my paragraph breaks.)


Starting Score: ~500 (12/01/2008)
Current Score: EQ 681 (04/05/13); TU 98 728 (01/06/12), TU 08? 760 (provided by Barclay 1/2/14), TU 04 728 (lender pull 01/12/12); EX 742 (lender pull 01/12/12)
Goal Score: 720


Take the FICO Fitness Challenge
Valued Member
1Health
Posts: 39
Registered: ‎08-02-2012

Re: Statement Cut off date

Okay umm yeah kinda got it. Basically I'm trying to determine If I PIF every month no matter what so that means on the 5th (my due date) I pay my balance of $30 and statement closes on 9th will the C1 report 30$ used out of 1,000 cl which makes it 3% utilization or will they report 0% utilization. And if zero how do I get my account to report utilization. Trying to build my credit!! And I read need 3-9% UTI..
This is basically why I'm asking this question.

Starting Score: EQ: 651 FICO TU: 615 FICO EX: 629 FAKO (08/06/2012)
Current Score: EQ: 684 FICO TU: 615 FICO EX: N/A FAKO
Goal Score: 760+ Across Board


Take the FICO Fitness Challenge
Contributor
tboy1977
Posts: 221
Registered: ‎07-11-2012

Re: Statement Cut off date


Walt_K wrote:

Let's say your August 8 bill reads $50, and says you must pay by September 5.  That means $50 will get reported to the CRAs as your balance.  That's done and over with.  You can't do anything to change that balance until the following month when your next bill is generated.  That's why I'm saying to not really concern yourself with the due date.  It's a separate item that has to do with when you need to pay your bill to avoid interest and late penalties.

 

Ok, now you pay your $50 before August 5.  Good, no late fees, no interest.  Whether you will now have a $0 balance on your next bill, and therefore 0% utilization on your next credit report, depends on what you've been doing with your card.  Did you use your card on the 9th, 10th, 11th, etc?  If you did, then paying your last month's bill in full, i.e., paying $50, is not going to zero out all of your charges.  All those charges after the 8th are going to post.  And those charges will be on the next bill, which will be on the next report, so again, not 0% utilization.  The only way you would be at $0 after paying by the 5th is if you hadn't used your card after your last month's bill, or if you paid more than the balance due on your bill.

 

(I hate that apparently there is some problem that fails to recognize my paragraph breaks.)


We are saying the same thing, abeit differently.  In your scenario, the due date is the 5th and the statement cut off date is the 8th.  Balances needs to be zero on the 8th to report as zero.

Starting scores: EQ 420, EX 421, TU 405 (Jan 2011)
Bk Ch 7 Discharged Mar 2011
Current scores: EQ 456, EX 534, TU 411 (Aug 2012) FICO (8/2012 -- EQ 564, EX 584 (from BofA) TU 551)
Goal scores: EQ 700+, EX 700+, TU 700+

Credit accounts: 30% APR auto loan (Jan 2012), Secured [CapOne (3K), PNC (1300), NFCU (1K), Coke (2500)] and Target (200)
Frequent Contributor
OhioCPA
Posts: 447
Registered: ‎03-29-2011

Re: Statement Cut off date

PIF by the statement date and don't charge anything until the statement cuts you end up with zero utilization. The "due date" has nothing to do with utilization.

 

Utilization is determined at the moment the statement is cut. It is based on the amount owed at that point compared to the TL.

________________________________________________________________________________
Chase Sapphire Preferred, Amex Hilton Honors Surpass, Amex BCE, BOA Travel Rewards, Amex MB Platinum

myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.

>> About myFICO
FICO Score - The Score that matters
Fair Isaac Corporation is a BBB Accredited Financial Service in San Rafael, CA
FOLLOW US Social Media Facebook Twitter Pinterest Google+