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paying balance on credit card every month

New Visitor

paying balance on credit card every month

I have two credit cards. I use both of them over the course of every month. I pay off the ENTIRE BALANCE every month. I never have any finance charges. 

My question is.... how do they show balances on my credit report??? Shouldn't they be $0.00 on my credit report.  

Message 1 of 12
11 REPLIES
Established Contributor

Re: paying balance on credit card every month

It is almost certainly the statement balance that is reported every month.

FICOs (2/24/12): EX 752, EQ 740
Chase Sapphire Preferred, Freedom; American Express PR Gold, Blue Cash Everyday
Message 2 of 12
Valued Contributor

Re: paying balance on credit card every month


sunlover99 wrote:

I have two credit cards. I use both of them over the course of every month. I pay off the ENTIRE BALANCE every month. I never have any finance charges. 

My question is.... how do they show balances on my credit report??? Shouldn't they be $0.00 on my credit report.  


They will be $0.00 if you pay them before the STATEMENT date rather than the DUE date.  Creditors report to the credit bureaus when you statement for the month is cut, not the date you pay your bill. 

EQ Fico 8 - 846
TU Fico 8 - 848
EX Fico 8 - 836
Message 3 of 12
Established Contributor

Re: paying balance on credit card every month


sunlover99 wrote:

I have two credit cards. I use both of them over the course of every month. I pay off the ENTIRE BALANCE every month. I never have any finance charges. 

My question is.... how do they show balances on my credit report??? Shouldn't they be $0.00 on my credit report.  


The credit card companies are reporting your balance as of the statement closing date (not the due date).  If you want to have zero balances reported, you must make sure you remit payment far enough in advance so that it posts to your account before the statement closing date each month.

FICOs: TU08 850 EQ08 850 EX08 849

My Wallet: Amex Gold NPSL; Amex Optima Platinum $25K; Amex BCE $12K; BofA Visa $10.1K; BofA TR Visa $18K; Cap1 Quicksilver Visa Sig $10K; CSP $28.2K; Chase Freedom $13K; Citi Costco Visa $19.3K; Citi Double Cash $13.5K; Citi Simplicity Visa $23.3K; Discover IT $50K; Fidelity Amex $25K; PenFed Plat Rewards Visa Sig $50K; Sallie Mae WMC $17.5K; Sears MC $10.1K; US Bank Cash+ Visa Sig $26K; Walmart Discover $10K; Wells Fargo Rewards Visa Sig $14K
Message 4 of 12
Regular Contributor

Re: paying balance on credit card every month

Is it better for you to pay before the statement date?  whats the difference in paying before and after?  how do you know the statement date?

01/10/09: - TransUnion: 500 / Equifax: 521, / Experian: 566
Filed BK 02/24/2012
06/06/2014: - Transunion:509 / Equifax:513 ,/ Experian: 551
07/28/2014: - Transunion:487 / Equifax:467 ,/ Experian: 574
08/04/2014: - Transunion:516 / Equifax:555 ,/ Experian: 584


07/25/2014: - Transunion:516 / Equifax:541 ,/ Experian: 574
Message 5 of 12
Established Contributor

Re: paying balance on credit card every month


MaryJane197 wrote:

Is it better for you to pay before the statement date?  whats the difference in paying before and after?  how do you know the statement date?


It's always important to pay at least the minimum due by the due date each month.  But, to control what is reported on your credit reports each month, you must also keep the statement date in mind and plan/pay accordingly if you want a zero balance or just a lower balance in general to be reported to the credit bureaus.

Your statement closing date should be noted on your monthly statement(s).  You can always call your credit card companies to find out as well.

 

FICOs: TU08 850 EQ08 850 EX08 849

My Wallet: Amex Gold NPSL; Amex Optima Platinum $25K; Amex BCE $12K; BofA Visa $10.1K; BofA TR Visa $18K; Cap1 Quicksilver Visa Sig $10K; CSP $28.2K; Chase Freedom $13K; Citi Costco Visa $19.3K; Citi Double Cash $13.5K; Citi Simplicity Visa $23.3K; Discover IT $50K; Fidelity Amex $25K; PenFed Plat Rewards Visa Sig $50K; Sallie Mae WMC $17.5K; Sears MC $10.1K; US Bank Cash+ Visa Sig $26K; Walmart Discover $10K; Wells Fargo Rewards Visa Sig $14K
Message 6 of 12
New Visitor

Re: paying balance on credit card every month

I am the OP.....But my statement closing date is 3 days after the due date. If I pay by the due date then I am paying before the statement closing date.  Why is it still showing a balance?

 

Message 7 of 12
Valued Contributor

Re: paying balance on credit card every month


sunlover99 wrote:

I am the OP.....But my statement closing date is 3 days after the due date. If I pay by the due date then I am paying before the statement closing date.  Why is it still showing a balance?

 



are you using the card after paying? 

 

 

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Message 8 of 12
New Visitor

Re: paying balance on credit card every month

Yes... I use the card every day... CapOne Venture Card... double miles. I Use the CapOne card instead of debit card or cash. 

Message 9 of 12
Established Contributor

Re: paying balance on credit card every month


sunlover99 wrote:

I am the OP.....But my statement closing date is 3 days after the due date. If I pay by the due date then I am paying before the statement closing date.  Why is it still showing a balance?

 


You must be using the card(s) and creating more transactions that are posting to your statement right up to the closing date.  Are you able to see pending charges on your credit accounts?  If so, you'll need to factor in those charges when you make a payment.

 

Basically, if you really want to have zero balances reporting on the statement closing date, you'll need to refrain from using your card(s) for a few days leading up to the day your statements cut.  That's what I have been doing.  And I've been so anal about it lately that I've been overpaying by a small amount so that I end up with a credit balance when my statements cut (they report as zero balances to the credit bureaus).  You probably don't need to go that far though!

FICOs: TU08 850 EQ08 850 EX08 849

My Wallet: Amex Gold NPSL; Amex Optima Platinum $25K; Amex BCE $12K; BofA Visa $10.1K; BofA TR Visa $18K; Cap1 Quicksilver Visa Sig $10K; CSP $28.2K; Chase Freedom $13K; Citi Costco Visa $19.3K; Citi Double Cash $13.5K; Citi Simplicity Visa $23.3K; Discover IT $50K; Fidelity Amex $25K; PenFed Plat Rewards Visa Sig $50K; Sallie Mae WMC $17.5K; Sears MC $10.1K; US Bank Cash+ Visa Sig $26K; Walmart Discover $10K; Wells Fargo Rewards Visa Sig $14K
Message 10 of 12