Reply
Contributor
Jungook
Posts: 189
Registered: ‎08-02-2013
0

Statement cut, payment due date, reporting help!

So after reading a million and a half articles and calling up a Discover CSR, I still don't definitively know how reporting works.

 

The information the Discover CSR gave me was that my statement is "cut" on the 5th of each month and the minimum payment is due the following month on the 2nd.

 

So let's say I racked up $300 in spending in the month of October. I pay $250 of it on October 31st in order for the transaction to have time to clear before the 5th of November. Then I abstain from using the card until after November 5th to keep my util. <10%. Then before December 2nd I would PIF for the month of October?

 

Help please, I'm so confused :smileysad:

Valued Contributor
FinStar
Posts: 6,955
Registered: ‎10-21-2012
0

Re: Statement cut, payment due date, reporting help!


Jungook wrote:

So after reading a million and a half articles and calling up a Discover CSR, I still don't definitively know how reporting works.

 

The information the Discover CSR gave me was that my statement is "cut" on the 5th of each month and the minimum payment is due the following month on the 2nd.

 

So let's say I racked up $300 in spending in the month of October. I pay $250 of it on October 31st in order for the transaction to have time to clear before the 5th of November. Then I abstain from using the card until after November 5th to keep my util. <10%. Then before December 2nd I would PIF for the month of October?

 

Help please, I'm so confused :smileysad:


Are you attempting to have Discover report a 0 balance on a frequent basis? 

Contributor
Jungook
Posts: 189
Registered: ‎08-02-2013
0

Re: Statement cut, payment due date, reporting help!

No I plan on having around 5% util.

Valued Contributor
FinStar
Posts: 6,955
Registered: ‎10-21-2012
0

Re: Statement cut, payment due date, reporting help!


Jungook wrote:

So after reading a million and a half articles and calling up a Discover CSR, I still don't definitively know how reporting works.

 

The information the Discover CSR gave me was that my statement is "cut" on the 5th of each month and the minimum payment is due the following month on the 2nd.

 

So let's say I racked up $300 in spending in the month of October. I pay $250 of it on October 31st in order for the transaction to have time to clear before the 5th of November. Then I abstain from using the card until after November 5th to keep my util. <10%. Then before December 2nd I would PIF for the month of October?

 

Help please, I'm so confused :smileysad:


 


Jungook wrote:

No I plan on having around 5% util.


Ok, so based on your minimal utilization reporting scenario then your plan sounds correct.  Make a payment of $250 on 10/31 (allowing enough time for posting by your due date of 11/2).  Then, leave the card without any transactions until the statement cycles on 11/5.  Provided you had no previous balance other than the $300, then only $50 should report and will be due on 12/2.  The CRAs should reflect the $50 balance.

 

Now, since Discover can be very quirky, there will be occasions in which a mid-cycle reporting will occur for some individuals.  It also depends whether it was triggered by any changes you perform on your account or just standard account reporting on their end.

Frequent Contributor
Steelersboy
Posts: 343
Registered: ‎06-25-2013
0

Re: Statement cut, payment due date, reporting help!

in most cases, only the statement date matters. this gave me fits a few months back, so ur not alone. lol

 

 

my capone statement closes on the 11th, so in order for a balance to report (<10 utilization), I will charge something on the pay date (8th of the month) or the 9th because charges usually pend for two days.When the statement cuts, which is the 11th, the charge will report as the balance to the bureaus. Fico EQ likes to see regular card use, so its important to let a balance report each month at least in my experience. But only on one card. but always pif before due date. I always have until the 8th of the following month to pay off that reported balance.

 

 
If a man empties his purse into his head, no one can take it from him. An investment in knowledge always pays the best interest. - Benjamin Franklin
FICO Equifax-741, FICO Transunion-729, FICO Experian-740, Walmart FICO-754
Capital One Platinum|Capital One Quicksilver Cash Rewards|Chase Amazon Visa Rewards|BOA Cash Rewards|Walmart Discover|Sallie Mae MC Goal scores- 760+
Valued Contributor
takeshi74
Posts: 3,229
Registered: ‎06-05-2013
0

Re: Statement cut, payment due date, reporting help!

You have it right.  In a nutshell:

 

Pay by statement end to reduce reported utlization.

 

PIF by due date to avoid interest.


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
Click to Verify - This site chose VeriSign SSL for secure e-commerce and confidential communications.
Fair Isaac Corporation is a BBB Accredited Financial Service in San Rafael, CA
FOLLOW US Social Media Facebook Twitter Pinterest Google+
}