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Regular Contributor
Posts: 217
Registered: ‎08-02-2013
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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 Smiley Sad

Valued Contributor
Posts: 8,705
Registered: ‎10-21-2012
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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 Smiley Sad


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

Regular Contributor
Posts: 217
Registered: ‎08-02-2013
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Re: Statement cut, payment due date, reporting help!

No I plan on having around 5% util.

Valued Contributor
Posts: 8,705
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 Smiley Sad


 


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
Posts: 363
Registered: ‎06-25-2013
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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
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Valued Contributor
Posts: 5,047
Registered: ‎06-05-2013
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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.

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