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Statement cut / Due date help

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SnackTrader
Valued Contributor

Re: Statement cut / Due date help

Remember, we are talking about two different months with statement and due dates.

Always pay your bill by the due date.

But if your credit card has a payment due today, the only thing due is the purchases made in the last statement cycle (look at your last CC statement if you are confused on your statement cycle). The current statement cycle began when the old one ended, and will typically end on the same day each month. So, you pay the amount due from last statement cycle today, and you pay down the purchases you made during this statement cycle soon to avoid them being reported to the bureaus. Then, when the statement from this cycle closes, you will only have a few dollars to pay off at your NEXT due date.

So two completely different months. Your statement will show you the dates of the statement cycle. The goal is to show a small balance on the last day of that statement cycle. And then to pay off the remainder by the due date.

In My Wallet: Amex BCP (12/12) $50,000, Chase Freedom (12/12) $16,500, Cap1 Quicksilver (6/12) $14,000, Barclaycard Rewards (5/13) $10,500, Citi Prestige (4/16) $30,000

Last App: June 27, 2015
Message 11 of 14
kroberts67
Established Contributor

Re: Statement cut / Due date help

This hurts my little brain.  Does it make a difference whether you PIF (completely) by the due date, or pay in full (according to your statement) by the due date?  The cards that I've been practicing this with I've been PIF completely, whatever I've charged up to the due date.  I'm not leaving any leftover (unless it's pending and the card doesn't allow me to pay that much).  Am I doing it wrong to get the most out out my score?  

 

I have 2 cards I've been rotating, they are due opposite times of the month so it has worked well in regards to paying and reporting zero but for score purposes maybe not to the fullest?

FICO: EQ 814 | TU 847 | EX ? (Started in the low 500's... you can do it!)

Amex BCE $25000, Amex AP $20000, SFFCU Visa $15000 + LOC $5000, USAA Amex $6000, USAA MC $7000, Cap1 $9500, Freedom $12000, Slate $500, Barclays "RIP" SM $11500, USBank Cash+ $12500, Citi Diamond $11200, Citi Double Cash $12000, Care Credit $13500k.
My Credit Repair Journey
Message 12 of 14
dndandrea
Established Member

Re: Statement cut / Due date help

I just got off the phone with CHASE and I asked if the statement cut is the same date as when they send the information to the credit companies. He said no they only report to them every 60-90 days at random. 

 

I found out my statements are set to arrive on the 8th of every month and my due date is on the 5th of every month. So on April 8th I will receive my billing cycle for March 5th - April 5th? And on May 8th I will receive my billing cycle for april 5th - May 5th? So I can use my card however i like (assuming i stay within my limit) and then just pay it down to $100 at least a week before my statement comes in order for it to report my utilization as around 10% right? I just realized the due date and the statment cut overlap witheach other but they're reporting for the month before.

 

Is this all correct? Thanks

Message 13 of 14
SnackTrader
Valued Contributor

Re: Statement cut / Due date help

The Chase guy didn't know what he was talking about. My Chase card reports to the bureaus every month.

So - you are wrong in your dates. Your statement "arrival" date, is what I am guessing is your statement date. Open your last statement, and at the top of the page you will see which dates were used for the statement period. It is probably February 9 - March 8, or something similar (February is a short month so it messes everything up). So your purchases made between February 9 and March 8 are due on your due date, April 5.

Your current statement period is March 9 - April 8. You need to pay down your balance by April 9 in order to show a low utilization on the bureaus. Then pay the remainder off by the due date for that period, May 5.

This also only applies to this specific card, other cards will have different dates, but the mechanics are the same. And the statement may cut on the 8th, but that isn't immediately reported to the bureaus. It can take up to a week for the companies to transfer their info to the bureaus from what I have found in my own life. However, the balance that is reported is from the end of that statement date.

If all this still confuses you, Just remember the most important thing is to pay in full (or as close to it) by your due date. So, if nothing else, pay down your balance to $0 on the 5th of every month and everything will be fine.

In My Wallet: Amex BCP (12/12) $50,000, Chase Freedom (12/12) $16,500, Cap1 Quicksilver (6/12) $14,000, Barclaycard Rewards (5/13) $10,500, Citi Prestige (4/16) $30,000

Last App: June 27, 2015
Message 14 of 14
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