topic Re: CC Statements and Util in Credit Cards

CC Statements and Util

Uniqua — Thu, 26 Jun 2008 12:26:28 GMT

Help! I am so confused.

I recently opened three new CCs (all in the month of June) and I'm trying to figure out this statement date/utilization stuff and I have to admit I don't know as much as I thought I did.

These are the CCs I have obtained:

HFCU - $1K Bal $69.30 (paid today) Statement Date 6/11/08 (got card 6/12 due 7/6)

WaMu - $2K Bal $68.79 (paid today) Statement Date 5/25-6/26 (got card 6/14 due 7/22)

AEFCU - $500 Bal $53.35 (will pay tomorrow) no statement date (got card 6/20)

So that I don't incur finance charges, since my balances on my HFCU and WaMu cards will be $0, if I use them again before the statement due dates is that considered the same statement or the next month's statement? I don't understand how I can have statements when I didn't have the card nor had I even applied (WaMu); or how I can have a statement date the day before I got and activated my card (HFCU).

My overall util (I think) is 5%. If I am incorrect, please let me know.

Re: CC Statements and Util

Anonymous — Thu, 26 Jun 2008 13:08:26 GMT

Uh.... If you pay them in full after the statement date, but before the due date, you can start using them again. Otherwise, I believe you would end up incurring finance charges on those new purchases.

As you sit right now, your util is 5.4%, but since you're paying the last card before the statement date, your CRs will show 3.9% util.

As far as your first statement period starting before you got the card, that's completely normal. My freedom card's first statement cut a week after I activated, maybe two, I can't remember. A lot of the time its based on the due date. For example Discover asked me when I activated what due date I wanted. Then they work backwards from there. 20 day grace period means the statement cut date would be 20 days prior to whatever due date you requested.

Message Edited by thrasher865 on 06-26-2008 06:08 AM

Re: CC Statements and Util

Uniqua — Thu, 26 Jun 2008 13:36:19 GMT

Thanx, Thrasher. I guess what threw me off were the statement dates. I was expecting them to be approximately 30 days from the date of activation. How wrong was I!!

I wasn't given the option to pick my statement dates on any of my CCs, but it would have been better for me to be able to do that and not end up surprised like I am right now. I am going on a trip this weekend and wanted to make sure I could continue to use the cards without penalty.

One more question though. My HFCU CC is due 7/6. As long as I use it and pay in full before this date, I should not incur any charges, correct? Since my statement date is 6/11 and the due date is 7/6, I take it that-that is my 25-day grace period? I can't believe that my statement date is 6/11. I didn't even have the card at that time. Too funny!

Re: CC Statements and Util

Anonymous — Thu, 26 Jun 2008 13:45:25 GMT

I am so glad someone started a thread on this. I have never really understood the statement/due date thing. Obviously, the due date for the payment is easy to understand. But, what exactly is the "statement date" in relation to the balances that are posted on your credit report. I use 2 of my cards regularly and make atleast 2 payments a month to PIF, but I don't want my balance to be caught on my credit reports. I've been flying by the seat of my pants on this, and for the most part been lucky.

Is there a definitive way to do this?

Re: CC Statements and Util

Anonymous — Thu, 26 Jun 2008 14:10:46 GMT

UpUpUp wrote:

I am so glad someone started a thread on this. I have never really understood the statement/due date thing. Obviously, the due date for the payment is easy to understand. But, what exactly is the "statement date" in relation to the balances that are posted on your credit report. I use 2 of my cards regularly and make atleast 2 payments a month to PIF, but I don't want my balance to be caught on my credit reports. I've been flying by the seat of my pants on this, and for the most part been lucky.

Is there a definitive way to do this?

Yes, there sure is.

The following applies to most card by most issuers. A notable exception is some HSBC cards,which do not report the statement balance at all, but instead report the balance on the last business day of the month.

Three to five business days before the next statement date, pay the card to the balance you would like to it to report. If you want the card to report $0, pay the current balance in full. If you want it to report a small balance, pay the card down to that balance.
Stop using the card completely until the next statement generates.
Once you have the next statement, pay at a minimum the minimum payment due on that statement before that statement's due date. If you paid the card off so that the statement balance was $0, there will be no mimimum payment due. To avoid finance charges, pay the total statement balance on that statement before that statement's due date, rather than just the mimimum payment.
Begin using the card again.
Repeat.

I always pay my statement balance in full (or at least make the minimum payment) as soon as the statement generates. That way I won't forget and I won't be scrambling to get my payment in on time at the last minute.

Does that help?

Re: CC Statements and Util

Anonymous — Thu, 26 Jun 2008 14:14:17 GMT

Yes, that helps tremendously. That's exactly what I was looking for. Once again, thanks SO much!

Re: CC Statements and Util

Uniqua — Thu, 26 Jun 2008 14:26:50 GMT

So, since I paid HFCU the full balance today, I should not use the card again until after the due date of 7/6? I think the next statement is 7/11. I noticed, though, that my payments are credited to my account the same day I submit them (as long as I do it early morning). I would love to use this card on my trip this weekend.

Re: CC Statements and Util

Anonymous — Thu, 26 Jun 2008 14:29:50 GMT

Uniqua wrote:
So, since I paid HFCU the full balance today, I should not use the card again until after the due date of 7/6? I think the next statement is 7/11. I noticed, though, that my payments are credited to my account the same day I submit them (as long as I do it early morning). I would love to use this card on my trip this weekend.

No, there's no reason you can't use your card. Please read the steps I posted above. The only time you shouldn't use your card is AFTER you have made the payment to set the desired reported balance and BEFORE that balance actually reports. Since your next statement is not until July 11, there's no reason you couldn't use your card now and still be able to pay it off in plenty of time to avoid letting it report a balance, if that's what you're after.

Re: CC Statements and Util

Uniqua — Thu, 26 Jun 2008 14:46:44 GMT

I read the steps, but since I am new to this, I got to admit that I will still have questions until I've done this for at least 6 months and gotten used to it. In the past, I've always waited until I got my statement before I made any payments, thus the reason why my util was so high. I had no clue about that then.

As far as HFCU, I think I understand now. The statement date of 6/11 shows no transactions and no balance due. My statement on 7/11 will show all transactions and balance due from the date I first activated and used the card (6/12 I believe). So, I can let a balance report on my 7/11 statement (if I want, which I doubt), but that balance will need to be paid by 8/6 which is the cut-off date for the 25-day grace period.

I'll be using this baby like crazy on my trip.

Re: CC Statements and Util

Anonymous — Thu, 26 Jun 2008 14:48:36 GMT

Uniqua wrote:
I read the steps, but since I am new to this, I got to admit that I will still have questions until I've done this for at least 6 months and gotten used to it. In the past, I've always waited until I got my statement before I made any payments, thus the reason why my util was so high. I had no clue about that then.

As far as HFCU, I think I understand now. The statement date of 6/11 shows no transactions and no balance due. My statement on 7/11 will show all transactions and balance due from the date I first activated and used the card (6/12 I believe). So, I can let a balance report on my 7/11 statement (if I want, which I doubt), but that balance will need to be paid by 8/6 which is the cut-off date for the 25-day grace period.

I'll be using this baby like crazy on my trip.

Yep, sounds like you got it.

Just remember that if you want to let the card report $0, you need to pay the current balance in full by 7/6 or so, and stop using the card at that point until the statement generates on 7/11 and shows a $0 balance. Then you can start using it again.

Re: CC Statements and Util

Uniqua — Thu, 26 Jun 2008 15:02:46 GMT

I called HFCU to ask about the 6/11 statement date. I was told that I did not need to worry about that statement or the date due of 7/6 since I hadn't even received or activated the card at that time. It does show a balance due of $0. The CSR told me that my transactions from date of activation (6/12) will be reported on my 7/11 statement, and I would need to pay that balance by 8/6 to avoid FCs. So, I'll make sure to pay any new charges by 7/11 so that it will report a $0 bal on my CRs.

My AEFCU CC is the only card I think I'll let report a small balance, since that CC is my lowest CL. I should do this for FICO computation of util, correct? Reporting zero util each month will not help my score since FICO will have no amounts to configure? If this is correct, I wonder if I can hit the 700 club by Sept. 1. My current FICOs are:

TU 666
EQ 666
EX 677 (don't know how that jumped from 609, but thank God it did!)

Re: CC Statements and Util

Anonymous — Thu, 26 Jun 2008 15:05:19 GMT

Uniqua wrote:
So, I'll make sure to pay any new charges by 7/11 so that it will report a $0 bal on my CRs.

My AEFCU CC is the only card I think I'll let report a small balance, since that CC is my lowest CL. I should do this for FICO computation of util, correct? Reporting zero util each month will not help my score since FICO will have no amounts to configure?

That's correct. FICO will ding you as many as 20 points or so if you have $0 in revolving balances reporting.

Since this is your only card, instead of paying ot to $0 before 7/11, pay it down so that the balance that reports is 1% of the card's CL. That will get you the max FICO points you can get for that card reporting.

Re: CC Statements and Util

Uniqua — Thu, 26 Jun 2008 15:27:38 GMT

Ding me as much as 20 POINTS? Oh heck no! I better learn this util stuff QUICK!

Actually, I have my WaMu card too (3 CCs in total). I received and activated that card on 6/14. Today I find out that my statement cut on 6/25. Huh? Sooooooo, even though I had already made a payment, the balance I left will be reported on my CRs (if WaMu even reports this early?). That DEFINITELY threw me for a loop as I was not expecting a statement from WaMu so soon. My WaMu CL is $2k, the balance is $68.79. I have until 7/22 to pay in full. WaMu is one card I DO NOT want to carry a balance on. Their billling cycles scare me!

Re: CC Statements and Util

techgirl — Thu, 26 Jun 2008 20:51:52 GMT

Okay, now I am confused. If you have more than one, it is okay to leave a couple of them at $0 for a while - right?

Re: CC Statements and Util

Anonymous — Thu, 26 Jun 2008 20:55:07 GMT

techgirl wrote:

Okay, now I am confused. If you have more than one, it is okay to leave a couple of them at $0 for a while - right?

Yes, but try not to let them all report $0 at the same time.

Re: CC Statements and Util

marty56 — Thu, 26 Jun 2008 22:01:32 GMT

good news that if you only have a $1 on a card it will report at 1% regardless of what you total available credit is so it doesnt take much to show some util. In my score bucket 1% seems to be as good as 9%.