Statement Date, Reporting Date, Payment Date

[newmomnewme]

Can someone please tell me when I should make a payment (so my balance will be $0 when reported) if my statement date is 10th and payment due date is 7th the next month. 

[09Lexie]

Pay your bill on the 7th and don't use it until after the 10th.

[takeshi74]

The statement date is really all that matters if you're trying to reduce reported utilization.  That is, assuming your card isn't one that reports at a fixed time of month.

In short:

Pay by the statement date to lower utilization.  Pay in full by the due date to avoid interest.  Pay at least the minimum by the due date to keep the account current.

[newmomnewme]

Thank you! I want to pay all cards to 0 except for one and keep it under 9%....so I will pay it in full this month, then use it after the 10th of next month...and I will see if there is a set report date or not.  

[gtnitright]

Ok. So my statement date is the 14th and payment date is Nov 7. So does this mean I can't use my card until next month? I have another thread about this same thing but a little confused as to when I can use the card. My CL is only $300 so I can run that up very quickly. I don't want my high utilization reported. Please help me understand

[1_2]

I had that happen once on my Walmart card which is due by the 5th and the statement doesn't cut till the 12th. I ordered something online right after the due date and it showed up as me having a balance even though I pay in full each and every month. That may just apply to Walmart though. I'm no expert. I'm still in the kindergarten class of credit, lol.

[bichonmom]

A good rule of thumb is to stop using the credit card a few days *before* the statement date. Then pay the day before the statement date, so you know you're paying the most recent balance (including those most recent purchases that might take a few days to post to your account). Be sure to check for any pending transactions that might not have posted yet, and include those in your payment amount.

Wait until the day after your statement cuts to use the card again. So, really you're just not using the card for a few days each month. That's why it's good to have revolving credit due/statement dates. So you can alternate cards when you want them to report a zero bal.

[user5387]

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@gtnitright wrote:
Ok. So my statement date is the 14th and payment date is Nov 7. So does this mean I can't use my card until next month? I have another thread about this same thing but a little confused as to when I can use the card. My CL is only $300 so I can run that up very quickly. I don't want my high utilization reported. Please help me understand

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It may be useful to work through an example.

Suppose that the current billing cycle is October 1-31, with a statement issued on October 31.

In general, the balance on the statement is what is reported to credit bureaus.  If you want to have some control over that balance, you need to make one or more payments before the statement date.  If your CL is $300 you might wish to push through multiple payments a month from your bank.

Suppose that on October 31 the statement is issued, and there's a balance greater than $0 on it.  At this point you need to make at least the minimum payment by around November 25.  If you don't pay the balance in full by November 25, then you'll owe interest.

As to the issue of when you can or can't use the card, it really depends on what you're trying to do.  If you want the statement to reflect a $0 balance, then you wouldn't want to use the card just before the statement is issued.  If your goal is rather to let a small balance report (say $15), then using the card to buy a sandwich a couple of days before the statement cuts is no big deal.

[gtnitright]

Thank you all for the information. I think I got it now. I love myfico family!😃