topic Re: Statement date in Credit Cards

Statement date

JT44 — Mon, 26 Aug 2013 05:22:31 GMT

Can someone please explain, or point me in the direction of a thread, that explains the strategy of when to PIF relative to the due date, but then there is something about the statement date as well? Plea explain! I get all of my statements online, so don't know when my statement date is.

Re: Statement date

09Lexie — Mon, 26 Aug 2013 05:43:37 GMT

Even with online statements, you can view your statements. The reason you would PIF before your statement cuts is if you want a 0 balance to report. If you wait until the statement* has cut and then PIF, that figure will be reported to CRAs.

for example, your XYZ Store Card is due on the 1st , your current balance is $100. You can either PIF between now and the 1st and do not use your card until after the statement cuts which is usually 4-5 days later. your new statement cuts 6th and since you PIF and did not use your card- your bal reported will be 0.

* some lenders report monthly balances not statement balances, for example DCU Visa.

Re: Statement date

JT44 — Mon, 26 Aug 2013 06:13:33 GMT

Ok I think I got it. And I really do want to show a 0$ balance, right? If I have no balance, does that still count towards utilization? Where do I actually find my statement date?

Re: Statement date

09Lexie — Mon, 26 Aug 2013 06:20:04 GMT

How many cc's do you have?

Re: Statement date

Anonymous — Mon, 26 Aug 2013 06:41:09 GMT

Typically, a credit card issuer reports your balance to the credit bureaus once a month.

A lot of credit card issuers report your balance on your statement date. This is the day that the credit card company sets to close your statement and set the amount due by your due date. Every credit card issuer is different as to when your statement date is. Some are on a XX day cycle (e.g. 30 days being typical). As such, your statement date will move from month to month. Other credit card issuers keep their statement date the same date every month. I know of a few credit card issuers (e.g. credit unions) that have everyone on the same statement date. Easiest way to find out is to call customer service and ask about their statement cycle. Also remember there can and often is a difference between when you pay and when payment goes against your balance. As such, if you are trying to report 0 balance, don't wait till last minute to pay. Once again, customer service can help you answer the question of timing.

While statement date is by far the most common date that is reported to credit bureaus, it is not the only date. Some credit card issuers report to credit bureaus on a certain date. The fact is there is no rules that regulate this which can be frustrating if you are trying to manage your reported utilization. There have been cases of credit card issuers either reporting more frequently than once a month or not for a while. Again, the best idea is to either ask on forum such as this and/or call the customer service to see when they report balance to credit bureaus. As FYI, some credit card issuers will report your balance when you ask them to so worth a call if you need to raise your score a little.

Re: Statement date

djc1puno — Mon, 26 Aug 2013 07:55:16 GMT

@Anonymous wrote:
Typically, a credit card issuer reports your balance to the credit bureaus once a month.

A lot of credit card issuers report your balance on your statement date. This is the day that the credit card company sets to close your statement and set the amount due by your due date. Every credit card issuer is different as to when your statement date is. Some are on a XX day cycle (e.g. 30 days being typical). As such, your statement date will move from month to month. Other credit card issuers keep their statement date the same date every month. I know of a few credit card issuers (e.g. credit unions) that have everyone on the same statement date. Easiest way to find out is to call customer service and ask about their statement cycle. Also remember there can and often is a difference between when you pay and when payment goes against your balance. As such, if you are trying to report 0 balance, don't wait till last minute to pay. Once again, customer service can help you answer the question of timing.

While statement date is by far the most common date that is reported to credit bureaus, it is not the only date. Some credit card issuers report to credit bureaus on a certain date. The fact is there is no rules that regulate this which can be frustrating if you are trying to manage your reported utilization. There have been cases of credit card issuers either reporting more frequently than once a month or not for a while. Again, the best idea is to either ask on forum such as this and/or call the customer service to see when they report balance to credit bureaus. As FYI, some credit card issuers will report your balance when you ask them to so worth a call if you need to raise your score a little.

crashem...thanks for that last tidbit of information...did not know that

Re: Statement date

dddewdrop — Mon, 26 Aug 2013 09:54:34 GMT

@djc1puno wrote:
@Anonymous wrote:
Typically, a credit card issuer reports your balance to the credit bureaus once a month.

A lot of credit card issuers report your balance on your statement date. This is the day that the credit card company sets to close your statement and set the amount due by your due date. Every credit card issuer is different as to when your statement date is. Some are on a XX day cycle (e.g. 30 days being typical). As such, your statement date will move from month to month. Other credit card issuers keep their statement date the same date every month. I know of a few credit card issuers (e.g. credit unions) that have everyone on the same statement date. Easiest way to find out is to call customer service and ask about their statement cycle. Also remember there can and often is a difference between when you pay and when payment goes against your balance. As such, if you are trying to report 0 balance, don't wait till last minute to pay. Once again, customer service can help you answer the question of timing.

While statement date is by far the most common date that is reported to credit bureaus, it is not the only date. Some credit card issuers report to credit bureaus on a certain date. The fact is there is no rules that regulate this which can be frustrating if you are trying to manage your reported utilization. There have been cases of credit card issuers either reporting more frequently than once a month or not for a while. Again, the best idea is to either ask on forum such as this and/or call the customer service to see when they report balance to credit bureaus. As FYI, some credit card issuers will report your balance when you ask them to so worth a call if you need to raise your score a little.
crashem...thanks for that last tidbit of information...did not know that

Ya but most will not. Whatever your balance is on the statement date, that is the number that gets reported to the CRAs typically. So if you want to show a 0 balance for utilitsation maximising make sure your statement has a 0 balance. You could pay every single bill as soon as you get it but if you had charged a lot that month you will not have maximised utilitsation unless your balance on the statement date is less than 9 percent of your credit limit. The statement date is key to understanding a lot of the principles of how to have the best fico score...

Re: Statement date

dddewdrop — Mon, 26 Aug 2013 09:59:03 GMT

The previous poster is correct in stating that different cards do different things. Typically it is the statement date that is reported however. Get to know your cards. Watch them over a period of time and figure out when they report. All my cards report on the statement date except Walmart sometimes is a bit different. It seems like it might report around the first of the month sometimes which is not my statement date. Even if you don't delve into all this minutiae, if you get the basics you will have good credit. The basics being:

Pay your bills ontime. Don't borrow a lot of money on credit cards. If you do charge something pay it off as soon as possible. If you do all that you will be in good shape.

Re: Statement date

takeshi74 — Mon, 26 Aug 2013 13:58:13 GMT

@JT44 wrote:
Can someone please explain, or point me in the direction of a thread, that explains the strategy of when to PIF relative to the due date, but then there is something about the statement date as well?

You PIF by the due date to avoid interest.

You PIF before the statement date to avoid reporting a balance.

@09Lexie wrote:
The reason you would PIF before your statement cuts is if you want a 0 balance to report.

...or to have a lower balance in general reported (even if above 0).

@JT44 wrote:
Ok I think I got it. And I really do want to show a 0$ balance, right? If I have no balance, does that still count towards utilization? Where do I actually find my statement date?

You want overall utilization to be as low as possible but above 0. Whether you want a specific account to be 0 or not is your call to make.

Re: Statement date

Odiseous — Mon, 26 Aug 2013 18:42:54 GMT

@Anonymous wrote:
Typically, a credit card issuer reports your balance to the credit bureaus once a month.

A lot of credit card issuers report your balance on your statement date. This is the day that the credit card company sets to close your statement and set the amount due by your due date. Every credit card issuer is different as to when your statement date is. Some are on a XX day cycle (e.g. 30 days being typical). As such, your statement date will move from month to month. Other credit card issuers keep their statement date the same date every month. I know of a few credit card issuers (e.g. credit unions) that have everyone on the same statement date. Easiest way to find out is to call customer service and ask about their statement cycle. Also remember there can and often is a difference between when you pay and when payment goes against your balance. As such, if you are trying to report 0 balance, don't wait till last minute to pay. Once again, customer service can help you answer the question of timing.

While statement date is by far the most common date that is reported to credit bureaus, it is not the only date. Some credit card issuers report to credit bureaus on a certain date. The fact is there is no rules that regulate this which can be frustrating if you are trying to manage your reported utilization. There have been cases of credit card issuers either reporting more frequently than once a month or not for a while. Again, the best idea is to either ask on forum such as this and/or call the customer service to see when they report balance to credit bureaus. As FYI, some credit card issuers will report your balance when you ask them to so worth a call if you need to raise your score a little.

This can also work to your advantage sometimes.

For example: If you update your billing address (even if you just re-enter the same address info) with BofA, they will report that to the CRAs, with your current balance.

This can come in handy; if you misjudged when your payment would post, and it posted after the closing date.

Re: Statement date

steve997 — Mon, 26 Aug 2013 19:52:51 GMT

I see a lot of people talking about wanting to have $0 balances reported on all cards but one, which has util <10%... Does this actually matter, or is it ok to have a couple cards with balances <10%? I'd always rather take advantage of the grace period if possible and it's not always possible/desirable to use one card for everything (different networks/rewards/etc)

Re: Statement date

09Lexie — Mon, 26 Aug 2013 20:04:22 GMT

@steve997

Having one cc report a balance and your util less than 10% is for max FICO scoring.

Re: Statement date

steve997 — Mon, 26 Aug 2013 22:09:40 GMT

@09Lexie wrote:
@steve997

Having one cc report a balance and your util less than 10% is for max FICO scoring.

I guess I just don't understand at all why say $80/2000 + $80/2000 should be worse than $0/2000 + $160/2000.

If more accounts is often a positive, why do you only get to "use" one of them. Haha.

Re: Statement date

parakleet — Mon, 26 Aug 2013 22:18:48 GMT

Also, all this util manipulation with statement dates only matters if you're concerned with seeking new credit. If not, then it really doesn't matter.

Re: Statement date

Steelersboy — Mon, 26 Aug 2013 22:53:21 GMT

took me a while to learn this too, but i have it thanks to this board. my amazon chase statement closes on the 23rd, but a statement will cut from the 23rd to the next if i make charges (date varies) and that number will report, so i make sure to never charge more than 10-12% of the card. my boa and capone cards report once the statement closes, so all i have to do is pif before due date to report a zero balance. havent used the wm card yet so im not sure when it reports

Re: Statement date

Steelersboy — Mon, 26 Aug 2013 22:55:44 GMT

@steve997 wrote:
I see a lot of people talking about wanting to have $0 balances reported on all cards but one, which has util <10%... Does this actually matter, or is it ok to have a couple cards with balances <10%? I'd always rather take advantage of the grace period if possible and it's not always possible/desirable to use one card for everything (different networks/rewards/etc)

ive seen users says that multiple cards reporting a balance dinged their cs slightly, so i follow lexy09s advice, let only one card report a <10% balance.

Re: Statement date

Steelersboy — Mon, 26 Aug 2013 22:57:08 GMT

this is because the fico model likes to see regular cc usage, which is why you can let an under 10% balance report on only one cc

Re: Statement date

JT44 — Tue, 03 Sep 2013 02:42:58 GMT

Ok so correct me if I am misunderstanding, but of my three cards two should lay dormant and one should show less than 10% utilization? Should the one card that I use CARRY a balance of less than 10%? Or should I use 10% of my CL and then PIF?

THANKS!!!

Re: Statement date

SnackTrader — Tue, 03 Sep 2013 03:33:45 GMT

Use as much of your CL as you want, but pay it down to under 10% before the statement cuts. As for the other 2 cards, they don't need to lay dormant, they just need to be paid down to $0 before the statement cuts.

Never carry a balance if you can help it - wasted money, IMO. FMax ICO scoring just requires a balance to report, but it can be paid off the next day and will never add up to interest charges.

Re: Statement date

DieGo2SHAE — Tue, 03 Sep 2013 04:11:18 GMT

I may as well ask here since this seems to be close to a question I had and there's no sense in making a whole new thread for it.

This Saturday I'll be applying for a CC. I currently have 2 CC's; my BofA and Discover. My BofA statement closed last month and I purposefully left a small balance on it (~5%) with the upcoming application in mind (payment not due until 9/17 so I'll be fine on not paying interest). I was under the impression that my Discover should have a small balance to report on Friday as well so I currently have it at the same ~5% mark, but reading this thread makes me think I should pay it off to 0 before the statement cuts this Friday. Shoud l? Or should I leave the 5% balance on it? It's a Citi Forward that I'll be applying for if it makes any difference.