topic Re: Statement cut / Due date help in Credit Cards

Statement cut / Due date help

Anonymous — Tue, 19 Mar 2013 08:04:16 GMT

Ok I've been posting here occasionally and have received a lot of help. I have one more concept that I quite can't figure out. How does the statement cut and due date work? Also how does it effect my utilization? My first bill still hasn't come yet. I've done tons of research on this but can't figure it out!

To me it'd make sense that the statement cut comes before my due date so it can tell me how much I owe for that month. But now I'm seeing that the statement cut comes AFTER the due date? So am I supposed to wait a few days after my due date to pay off my bill so it shows up as 10-30% utilization instead of 0% from being paid off?

I have a $1000 limit. I charged $600 on it the other day but paid off $500 3 days later to keep the balance down to $100. My due date is the 18th of next month but after that it'll be the 5th of every month. I still have no info on my other credit card.

Please help! Thanks

Re: Statement cut / Due date help

Anonymous — Tue, 19 Mar 2013 08:08:29 GMT

your statement cuts a few days after your due date. generally, it is 3 days after your due date. but it can vary. to get an exact date of when your statement cuts, you should call your bank to ask.

Re: Statement cut / Due date help

BrokaToe — Tue, 19 Mar 2013 11:51:07 GMT

@Anonymous wrote:
Ok I've been posting here occasionally and have received a lot of help. I have one more concept that I quite can't figure out. How does the statement cut and due date work? Also how does it effect my utilization? My first bill still hasn't come yet. I've done tons of research on this but can't figure it out!

To me it'd make sense that the statement cut comes before my due date so it can tell me how much I owe for that month. But now I'm seeing that the statement cut comes AFTER the due date? So am I supposed to wait a few days after my due date to pay off my bill so it shows up as 10-30% utilization instead of 0% from being paid off?

I have a $1000 limit. I charged $600 on it the other day but paid off $500 3 days later to keep the balance down to $100. My due date is the 18th of next month but after that it'll be the 5th of every month. I still have no info on my other credit card.

Please help! Thanks

The statement that is cutting 3 days after your due date is not a statement for that same due date.

The due date 3 days prior to the statement cut you are talking about is for the last months statement cut. Make sense?

Because once your statement cuts you have approx 20-25 days (depending on the creditor) to make your payment.

So let's say your statement was cutting today. In order to report low util, you should of paid down most of your cards balance prior to today. Then your due date for the charges shown on the statement would be the 16th of next month. If you pay the remaining balance in full by then, you will not have to pay any interest.

Hope this helps.

Re: Statement cut / Due date help

Anonymous — Thu, 21 Mar 2013 16:47:55 GMT

I'm still pretty lost. Is the bill statement different from the statement cut? How should I be using the credit card to get 10% utilization to increase my credit score? Thanks

Re: Statement cut / Due date help

injustifiiable — Thu, 21 Mar 2013 17:49:36 GMT

@Anonymous wrote:
I'm still pretty lost. Is the bill statement different from the statement cut? How should I be using the credit card to get 10% utilization to increase my credit score? Thanks

Bill statement and statement cut are the same.

I'll use one of my card's dates as an example, since I know the dates off hand.

Say your statement cut (or statement close) date is the 25th of March.

The DUE date for that statement is 25 days from the statement close, in my case it is April 21st.

If you're looking to report a lower balance, you should pay the card down by March 25, but I'd even do it a couple days eariler to account for electronic payment processing time. I usually pay my card down on the 20th and it's reflected in the outstanding balance by the 23rd.

The reported balance will be the balance left on the card as of March 25th, less any pending transactions (but sometimes transactions performed on the 24th or 25th will post with the statement, so be careful here). This amount is what should be paid by April 21st to avoid interest charges.

It takes a couple statements to get into the groove...you'll master it in no time. Hope that helped.

Re: Statement cut / Due date help

Anonymous — Thu, 21 Mar 2013 18:24:19 GMT

@injustifiiable wrote:
@Anonymous wrote:
I'm still pretty lost. Is the bill statement different from the statement cut? How should I be using the credit card to get 10% utilization to increase my credit score? Thanks
Bill statement and statement cut are the same.

I'll use one of my card's dates as an example, since I know the dates off hand.

Say your statement cut (or statement close) date is the 25th of March.

The DUE date for that statement is 25 days from the statement close, in my case it is April 21st.

If you're looking to report a lower balance, you should pay the card down by March 25, but I'd even do it a couple days eariler to account for electronic payment processing time. I usually pay my card down on the 20th and it's reflected in the outstanding balance by the 23rd.

The reported balance will be the balance left on the card as of March 25th, less any pending transactions (but sometimes transactions performed on the 24th or 25th will post with the statement, so be careful here). This amount is what should be paid by April 21st to avoid interest charges.

It takes a couple statements to get into the groove...you'll master it in no time. Hope that helped.

I never had pending transactions show up on my credit report especially those pending transactions for incendentials at hotels that drop off

Re: Statement cut / Due date help

injustifiiable — Thu, 21 Mar 2013 18:44:42 GMT

@Anonymous wrote:
@injustifiiable wrote:
@Anonymous wrote:
I'm still pretty lost. Is the bill statement different from the statement cut? How should I be using the credit card to get 10% utilization to increase my credit score? Thanks
Bill statement and statement cut are the same.

I'll use one of my card's dates as an example, since I know the dates off hand.

Say your statement cut (or statement close) date is the 25th of March.

The DUE date for that statement is 25 days from the statement close, in my case it is April 21st.

If you're looking to report a lower balance, you should pay the card down by March 25, but I'd even do it a couple days eariler to account for electronic payment processing time. I usually pay my card down on the 20th and it's reflected in the outstanding balance by the 23rd.

The reported balance will be the balance left on the card as of March 25th, less any pending transactions (but sometimes transactions performed on the 24th or 25th will post with the statement, so be careful here). This amount is what should be paid by April 21st to avoid interest charges.

It takes a couple statements to get into the groove...you'll master it in no time. Hope that helped.

I never had pending transactions show up on my credit report especially those pending transactions for incendentials at hotels that drop off

Not on the report per se, but say if you have a $50 balance on March 24th, and buy something for $10 on the 25th when the statement closes. Sometimes that $10 gets posted to the current balance when the statement closes. There are other times when the $10 will post to the account after the statement closes.

I have a Capital One card and it's happened to me both ways...that's why some would say not to use the card until the statement closes for sure.

Re: Statement cut / Due date help

Anonymous — Fri, 22 Mar 2013 13:54:50 GMT

So i should wait until AFTER my due date to pay off the balance? Use the card however I like until my due date (18th of next month) then pay down the balance to $100 before my due date. Then wait until I get my statement to pay off the rest? This won't be considered carrying the balance or making me pay interest correct?

After that I changed my due date to the 5th of every month. Will the statement come a few days after that or will it continue to come a few days after the 18th? Thanks for the help.

Re: Statement cut / Due date help

Anonymous — Fri, 22 Mar 2013 14:06:39 GMT

@injustifiiable wrote:
@Anonymous wrote:
@injustifiiable wrote:
@Anonymous wrote:
I'm still pretty lost. Is the bill statement different from the statement cut? How should I be using the credit card to get 10% utilization to increase my credit score? Thanks
Bill statement and statement cut are the same.

I'll use one of my card's dates as an example, since I know the dates off hand.

Say your statement cut (or statement close) date is the 25th of March.

The DUE date for that statement is 25 days from the statement close, in my case it is April 21st.

If you're looking to report a lower balance, you should pay the card down by March 25, but I'd even do it a couple days eariler to account for electronic payment processing time. I usually pay my card down on the 20th and it's reflected in the outstanding balance by the 23rd.

The reported balance will be the balance left on the card as of March 25th, less any pending transactions (but sometimes transactions performed on the 24th or 25th will post with the statement, so be careful here). This amount is what should be paid by April 21st to avoid interest charges.

It takes a couple statements to get into the groove...you'll master it in no time. Hope that helped.

I never had pending transactions show up on my credit report especially those pending transactions for incendentials at hotels that drop off
Not on the report per se, but say if you have a $50 balance on March 24th, and buy something for $10 on the 25th when the statement closes. Sometimes that $10 gets posted to the current balance when the statement closes. There are other times when the $10 will post to the account after the statement closes.

I have a Capital One card and it's happened to me both ways...that's why some would say not to use the card until the statement closes for sure.

oh but sometime s it could be just an authorization and never post

Re: Statement cut / Due date help

seattletravels — Fri, 22 Mar 2013 14:35:30 GMT

@Anonymous wrote:
So i should wait until AFTER my due date to pay off the balance? Use the card however I like until my due date (18th of next month) then pay down the balance to $100 before my due date. Then wait until I get my statement to pay off the rest? This won't be considered carrying the balance or making me pay interest correct?

After that I changed my due date to the 5th of every month. Will the statement come a few days after that or will it continue to come a few days after the 18th? Thanks for the help.

No - pay before your due date and then don't use again until after the statement closes.

Re: Statement cut / Due date help

SnackTrader — Fri, 22 Mar 2013 14:48:01 GMT

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.

Re: Statement cut / Due date help

kroberts67 — Tue, 26 Mar 2013 01:53:44 GMT

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?

Re: Statement cut / Due date help

Anonymous — Tue, 26 Mar 2013 20:44:36 GMT

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

Re: Statement cut / Due date help

SnackTrader — Wed, 27 Mar 2013 22:54:47 GMT

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.