4 More Questions About Utilization/Not Using Card During Statement Cuts

[mrjohnsonsgoals2]

Hey everyone,

So I called Chase a few weeks ago about my Freedom Card to confirm that my statement cut for the month of February was March 1st (next Saturday), and my due date is March 28th. Now, as I looked at my calendar, I had a few questions:

1. Is it advisable for me to pay my balance earlier next week, like maybe next Wednesday or Thursday? Chase's official policy states that any payment will be credited/posted the same day except on Saturdays, but I figure I'd ask just to be safe.

2. I know the recommended utilization rate to let cards report during statement cuts is 1% to 9%, but are any numbers in the scale better than others? The reason I ask this is because I'd love to have a nice/firm 9% report every time during a statement cut, but I fear that I'd somehow manage to overspend and then have it report 10%, ruining my tactics. I would optimally like to pay everything down to 1%, but some people have said that lower numbers are sometimes worse than higher ones.

3. Some people have talked about laying low come statement cut time - does that mean I should not use my card for a few days when I pay it down to have it report a balance of 1-9%? I know when the statement cuts but I'm not necessarily sure if that's the same time that a CC company will report to a bureau.

4. This final question sounds really silly (and I might be overthinking this), but during my due date of 03/28/2014, I'm only paying whatever balance has been reported on the statement cut, right? I'm figuring I'm only paying that, and every charge afterward I will have to pay for the next statementfor next month?(I think I've lost my mind as to how bills work again)

Thanks for the input again, guys. I hope I was clear enough.

[Blackrv7]

Chase can be a little odd when it comes to those couple of days around your statement cut.  I have had Chase report a statement balance, which I pif'd the next day and they ended up reporting a 0 balance to the CAs.  Also, for the first three months Chase sometimes will put hold on your payments for a couple of days until you build a payment history with them.  You may want to do a bill pay from your bank to make sure your payment gets posted when you want it to post.

[takeshi74]

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@mrjohnsonsgoals2 wrote:

Is it advisable for me to pay my balance earlier next week, like maybe next Wednesday or Thursday? Chase's official policy states that any payment will be credited/posted the same day except on Saturdays, but I figure I'd ask just to be safe.

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Your call to make.  My payments have always been credited same day but if you want a safety margin then by all means include one in your plans.

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@mrjohnsonsgoals2 wrote:

I know the recommended utilization rate to let cards report during statement cuts is 1% to 9%, but are any numbers in the scale better than others?

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Better is always subjective and it's no different here.  Your ideal utilization may be a specific percentage but it's up to you to determine what that is.  It's not necessarily the same for everyone.

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@mrjohnsonsgoals2 wrote:

Some people have talked about laying low come statement cut time - does that mean I should not use my card for a few days when I pay it down to have it report a balance of 1-9%? I know when the statement cuts but I'm not necessarily sure if that's the same time that a CC company will report to a bureau.

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Again, your call.  I don't manage my utilization in this manner since my spend typically ends up being ~12% anyway.  Chase reports on statement date.  If you think your spend right around cut might get reported and the reported balance takes priority then you might want to take appropriate measures.

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@mrjohnsonsgoals2 wrote:

This final question sounds really silly (and I might be overthinking this), but during my due date of 03/28/2014, I'm only paying whatever balance has been reported on the statement cut, right? I'm figuring I'm only paying that, and every charge afterward I will have to pay for the next statementfor next month?(I think I've lost my mind as to how bills work again)

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That is how it works.  Statement closes, you get a grace period and then your payment is due.  Charges on the next statement are on the next statement.

[notfancy]

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@mrjohnsonsgoals2 wrote:

Hey everyone,

So I called Chase a few weeks ago about my Freedom Card to confirm that my statement cut for the month of February was March 1st (next Saturday), and my due date is March 28th. Now, as I looked at my calendar, I had a few questions:

1. Is it advisable for me to pay my balance earlier next week, like maybe next Wednesday or Thursday? Chase's official policy states that any payment will be credited/posted the same day except on Saturdays, but I figure I'd ask just to be safe. I would just to be safe.

2. I know the recommended utilization rate to let cards report during statement cuts is 1% to 9%, but are any numbers in the scale better than others? The reason I ask this is because I'd love to have a nice/firm 9% report every time during a statement cut, but I fear that I'd somehow manage to overspend and then have it report 10%, ruining my tactics. I would optimally like to pay everything down to 1%, but some people have said that lower numbers are sometimes worse than higher ones. People here seem to report that this amount is different for every one, and I'm not sure why. For example it might be best for me to let 3% report but you'll get your most optimal score by letting 8% report. I don't know why this is, but at least we do know that anything 9% or less is best. I am guessing it isn't a huge difference though as long as you're with in that good range.

3. Some people have talked about laying low come statement cut time - does that mean I should not use my card for a few days when I pay it down to have it report a balance of 1-9%? I know when the statement cuts but I'm not necessarily sure if that's the same time that a CC company will report to a bureau. I usually do. Just a couple days. Like for example this month, I paid my bill down to about 5% and waited til all of my transactions were "gone" (I don't have chase but all of my cards seem to list all of the transactions I make that month, then it clears out when the statement cuts to start over for the new month's charges / statement)

4. This final question sounds really silly (and I might be overthinking this), but during my due date of 03/28/2014, I'm only paying whatever balance has been reported on the statement cut, right? I'm figuring I'm only paying that, and every charge afterward I will have to pay for the next statementfor next month?(I think I've lost my mind as to how bills work again) Correct. If you let $90 report, and your bill says some thing like "total balance $90, minimum payment $25  due 3/28" you only have to pay $25 as a min, and $90 to PIF by the 24th. Anything else you charge over that amount counts for the next month's spend.

Thanks for the input again, guys. I hope I was clear enough.

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Hope I made sense.

[mrjohnsonsgoals2]

Thanks guys, I think I'm clear now - I'll go ahead and pay next week Thursday, let the statement cut Saturday and then go ahead and pay right after it cuts...that sounds feasible? 

Also, as far as balances reporting...is ScoreWatch worth investing in to see what reports even if I have Credit Karma/Credit Sesame/Quizzle? I know those services give FAKO scores, but is the credit monitoring going to be okay? 

[gdale6]

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@mrjohnsonsgoals2 wrote:

Thanks guys, I think I'm clear now - I'll go ahead and pay next week Thursday, let the statement cut Saturday and then go ahead and pay right after it cuts...that sounds feasible? 

Also, as far as balances reporting...is ScoreWatch worth investing in to see what reports even if I have Credit Karma/Credit Sesame/Quizzle? I know those services give FAKO scores, but is the credit monitoring going to be okay? 

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Fine on PIF after stmt cut. You dont need anything else for credit monitoring but if you are looking for a daily puller I use MPM thru EIDT.

[mrjohnsonsgoals2]

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@gdale6 wrote:

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@mrjohnsonsgoals2 wrote:

Thanks guys, I think I'm clear now - I'll go ahead and pay next week Thursday, let the statement cut Saturday and then go ahead and pay right after it cuts...that sounds feasible? 

Also, as far as balances reporting...is ScoreWatch worth investing in to see what reports even if I have Credit Karma/Credit Sesame/Quizzle? I know those services give FAKO scores, but is the credit monitoring going to be okay? 

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Fine on PIF after stmt cut. You dont need anything else for credit monitoring but if you are looking for a daily puller I use MPM thru EIDT.

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Awesome, thanks. Yeah, people have been recommending EIDT, wanted to check it out, heard some negative things about the interface but I guess it won't be too high tech.

Also, do temporary authroizations/pending charges count toward my balance being reported? Some people have said that they get posted before the statement cut, so does that mean I should overpay or pay to make way for them just in case they report? 

[gdale6]

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@mrjohnsonsgoals2 wrote:

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@gdale6 wrote:

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@mrjohnsonsgoals2 wrote:

Thanks guys, I think I'm clear now - I'll go ahead and pay next week Thursday, let the statement cut Saturday and then go ahead and pay right after it cuts...that sounds feasible? 

Also, as far as balances reporting...is ScoreWatch worth investing in to see what reports even if I have Credit Karma/Credit Sesame/Quizzle? I know those services give FAKO scores, but is the credit monitoring going to be okay? 

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Fine on PIF after stmt cut. You dont need anything else for credit monitoring but if you are looking for a daily puller I use MPM thru EIDT.

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Awesome, thanks. Yeah, people have been recommending EIDT, wanted to check it out, heard some negative things about the interface but I guess it won't be too high tech.

Also, do temporary authroizations/pending charges count toward my balance being reported? Some people have said that they get posted before the statement cut, so does that mean I should overpay or pay to make way for them just in case they report? 

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temp auth/pending not included in reported balance unless they post at last second prior to stmt cut. I just quit using the card 5 days in advance of stmt cut so no charges can possibly do this. You will have to push payment with billpay most likely to overpay with most creditors.

[mrjohnsonsgoals2]

Ahh, I got it. So basically, if the statement cuts next Saturday, I should probably stop using my card from Tuesday - Saturday and then wait for the cut? Do companies report to bureaus on weekends? 

[gdale6]

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@mrjohnsonsgoals2 wrote:

Ahh, I got it. So basically, if the statement cuts next Saturday, I should probably stop using my card from Tuesday - Saturday and then wait for the cut? YUP

Do companies report to bureaus on weekends? Most reporting is done by computer so yes the computers will be talking to each other on weekends as well.

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