topic Re: When to pay CC Balance? in General Credit Topics

When to pay CC Balance?

OniStringer — Wed, 11 Jan 2023 20:55:28 GMT

Just out of curiosity. Should I pay the balance ON the due date? Or pay in full BEFORE the due date? What is the most ideal?

Re: When to pay CC Balance?

pizzadude — Wed, 11 Jan 2023 21:12:19 GMT

@OniStringer wrote:
Just out of curiosity. Should I pay the balance ON the due date? Or pay in full BEFORE the due date? What is the most ideal?

Creditors generally don't care as long as your payment is on time and you likely won't get bonus points for paying early.

I generally pay all my monthy bills on the same date, which results in some creditors getting paid on the due date and other getting paid earlier than the due date.

Re: When to pay CC Balance?

mgood — Wed, 11 Jan 2023 21:14:38 GMT

Before the statement date, to show zero balance on your reports.

On or before the due date to avoid paying interest.

Re: When to pay CC Balance?

Horseshoez — Wed, 11 Jan 2023 21:14:38 GMT

If you're looking for all zero balances, you want to pay either the day or the day before your statement cuts. If you want to let a few small charges report, then pay the day, or the day before the due date; this is how I do it and there are almost always a charge or two which shows up on my statements which in turn means I'm typically all-zero except one or two; occasionally I end up all zero which results in a temporary loss of FICO points.

Re: When to pay CC Balance?

OmarGB9 — Wed, 11 Jan 2023 21:21:13 GMT

Depends on what you're trying to accomplish. Are you trying to do AZEO and you're asking about the one card you're supposed to leave a balance on? Or are you just asking in general? If you're just asking in general, the answer is: it's completely up to you. So long as you pay at least the minimum by the due date, payment history wise you'll be okay. Obvioisly you'd have to pay the full statement balance to avoid paying interest by the due date.

Now, if you want to optimize scores, then that's when you'd implement AZEO (All Zero Except One, wherein you pay all cards down to zero balance BEFORE their respective due dates, except for one card you'd leave a small, <8.9% balance on).

Re: When to pay CC Balance?

Rogue46 — Wed, 11 Jan 2023 21:18:00 GMT

I pay off my cards sometimes daily. I just hate seeing balances on any of my accounts..

Re: When to pay CC Balance?

SouthJamaica — Wed, 11 Jan 2023 21:30:20 GMT

@OniStringer wrote:
Just out of curiosity. Should I pay the balance ON the due date? Or pay in full BEFORE the due date? What is the most ideal?

You should pay before the due date. Dangerous to leave things to the last minute, and in many cases the due date keeps changing.

I pay many of my accounts before the statement even cuts, thus maintaining them at zero reported balance.

Re: When to pay CC Balance?

OniStringer — Wed, 11 Jan 2023 22:09:19 GMT

@OmarGB9 wrote:
Depends on what you're trying to accomplish. Are you trying to do AZEO and you're asking about the one card you're supposed to leave a balance on? Or are you just asking in general? If you're just asking in general, the answer is: it's completely up to you. So long as you pay at least the minimum by the due date, payment history wise you'll be okay. Obvioisly you'd have to pay the full statement balance to avoid paying interest by the due date.
Now, if you want to optimize scores, then that's when you'd implement AZEO (All Zero Except One, wherein you pay all cards down to zero balance BEFORE their respective due dates, except for one card you'd leave a small, <8.9% balance on).

Appreciate this response as this was the main information i was looking for. Should have mentioned for score optimization, but thanks to everyone else as well as I was curious how people go about it.

Re: When to pay CC Balance?

SouthJamaica — Wed, 11 Jan 2023 22:48:09 GMT

@OniStringer wrote:
@OmarGB9 wrote:
Depends on what you're trying to accomplish. Are you trying to do AZEO and you're asking about the one card you're supposed to leave a balance on? Or are you just asking in general? If you're just asking in general, the answer is: it's completely up to you. So long as you pay at least the minimum by the due date, payment history wise you'll be okay. Obvioisly you'd have to pay the full statement balance to avoid paying interest by the due date.
Now, if you want to optimize scores, then that's when you'd implement AZEO (All Zero Except One, wherein you pay all cards down to zero balance BEFORE their respective due dates, except for one card you'd leave a small, <8.9% balance on).
Appreciate this response as this was the main information i was looking for. Should have mentioned for score optimization, but thanks to everyone else as well as I was curious how people go about it.

Unfortunately @OniStringer the red part of that statement is not correct, undoubtedly a typo by @OmarGB9 Paying before the due date is meaningless in terms of AZEO. It has to be before the reporting date if you want it to report at zero. The reporting date is usually, but not always, the prior statement date.

E.g. assuming (a) you want account to report at zero on next reporting date (b) account uses statement date as reporting date and (c) there are no new charges:

- Jan. 5th statement balance 100, due date Jan. 28th, next closing date Feb. 5th

- Payment in full before Feb. 5th if you want it to report zero balance, payment in full before Jan. 28th if you want to avoid interest

Re: When to pay CC Balance?

OmarGB9 — Fri, 13 Jan 2023 06:15:04 GMT

@SouthJamaica wrote:
@OniStringer wrote:
@OmarGB9 wrote:
Depends on what you're trying to accomplish. Are you trying to do AZEO and you're asking about the one card you're supposed to leave a balance on? Or are you just asking in general? If you're just asking in general, the answer is: it's completely up to you. So long as you pay at least the minimum by the due date, payment history wise you'll be okay. Obvioisly you'd have to pay the full statement balance to avoid paying interest by the due date.
Now, if you want to optimize scores, then that's when you'd implement AZEO (All Zero Except One, wherein you pay all cards down to zero balance BEFORE their respective due dates, except for one card you'd leave a small, <8.9% balance on).
Appreciate this response as this was the main information i was looking for. Should have mentioned for score optimization, but thanks to everyone else as well as I was curious how people go about it.

Unfortunately @OniStringer the red part of that statement is not correct, undoubtedly a typo by @OmarGB9 Paying before the due date is meaningless in terms of AZEO. It has to be before the reporting date if you want it to report at zero. The reporting date is usually, but not always, the prior statement date.

E.g. assuming (a) you want account to report at zero on next reporting date (b) account uses statement date as reporting date and (c) there are no new charges:

- Jan. 5th statement balance 100, due date Jan. 28th, next closing date Feb. 5th

- Payment in full before Feb. 5th if you want it to report zero balance, payment in full before Jan. 28th if you want to avoid interest

Indeed, I've been sleep deprived lately. I meant statement date, yes, which is usually the same as the reporting date with the exception of US Bank and a few other banks/CUs.

Re: When to pay CC Balance?

Anonymous — Fri, 13 Jan 2023 14:50:50 GMT

@SouthJamaica wrote:
You should pay before the due date. Dangerous to leave things to the last minute, and in many cases the due date keeps changing.

For those of us who still believe in auto-pay, setting it up to pay full statement balance on due date works fine. The bank takes care of any shift in due date!

Re: When to pay CC Balance?

Remedios — Fri, 13 Jan 2023 14:57:53 GMT

Every time someone mentions AZEO, baby penguin dies a horrible death.

Re: When to pay CC Balance?

House1204 — Fri, 13 Jan 2023 17:13:51 GMT

@Remedios wrote:
Every time someone mentions AZEO, baby penguin dies a horrible death.

AWWW, not the baby peguins!

Re: When to pay CC Balance?

OmarGB9 — Fri, 13 Jan 2023 18:39:00 GMT

@Remedios wrote:
Every time someone mentions AZEO, baby penguin dies a horrible death.

You just mentioned it right there!

Re: When to pay CC Balance?

Lionsonly008 — Fri, 20 Jan 2023 00:35:10 GMT

Two important things, know your due data and the statemtn date. the due date is when to pay the minimual ammount. statement closing date is when the bank report to the credit bueraea

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Re: When to pay CC Balance?

sznthescore — Fri, 20 Jan 2023 01:56:33 GMT

@Lionsonly008 wrote:
Two important things, know your due data and the statemtn date. the due date is when to pay the minimual ammount. statement closing date is when the bank report to the credit bueraea

Bingo.

Re: When to pay CC Balance?

Kforce — Fri, 20 Jan 2023 18:07:47 GMT

@Lionsonly008 wrote:
Two important things, know your due data and the statemtn date. the due date is when to pay the minimual ammount. statement closing date is when the bank report to the credit bueraea

In truth you don't have to know or track either if you just

pay current balance 2 times a month (~15 days apart)

5th & 20th or 1st & 15th, or 15th & 30th

Re: When to pay CC Balance?

Horseshoez — Fri, 20 Jan 2023 18:14:41 GMT

@Kforce wrote:
@Lionsonly008 wrote:
Two important things, know your due data and the statemtn date. the due date is when to pay the minimual ammount. statement closing date is when the bank report to the credit bueraea
In truth you don't have to know or track either if you just
pay current balance 2 times a month (~15 days apart)
5th & 20th or 1st & 15th, or 15th & 30th

Good advice if one doesn't care about balances being reported.

Re: When to pay CC Balance?

Zoostation1 — Sun, 22 Jan 2023 22:38:34 GMT

@Remedios wrote:
Every time someone mentions AZEO, baby penguin dies a horrible death.

I guess I'm killing penguins for a while. I'll eventually stop AZEO once I solidly have good scores, but right now I feel like the benefit outweghs it being a bit of a PITA.

Re: When to pay CC Balance?

Jnbmom — Sun, 22 Jan 2023 22:44:49 GMT

@OmarGB9 wrote:
@Remedios wrote:
Every time someone mentions AZEO, baby penguin dies a horrible death.
You just mentioned it right there!

Another penguin 🐧😂😂