Credit card Due date or Last Statment balance?

[Anonymous]

started building my credit back up with 2 cap one cards with 500 limits. My plan has been to use them monthly and pay off the total amount prior to the Due dates. I'm confused though if I should be looking at the Last Statment Balance date and paying it off to zero before that date. Example is one card has a due date of 6/24 but is showing a last statement balance of 406.00 as of 5/27. Should have I paid it before 5/27 to help with the utilization part of the score. Hopefully I'm not confusning everyone. Like I said I'm just starting.

The big thing is I never want a balance past the due date?right?

Thanks for the help

[Anonymous]

@Shorthiar,

Welcome to MYFICO.  This  thread should help answer your question..

http://ficoforums.myfico.com/t5/Credit-Cards/What-is-Pay-on-Time-What-if-I-don-t-pay-in-full/m-p/403...

[Anonymous]

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@Anonymous wrote:

started building my credit back up with 2 cap one cards with 500 limits. My plan has been to use them monthly and pay off the total amount prior to the Due dates. I'm confused though if I should be looking at the Last Statment Balance date and paying it off to zero before that date. Example is one card has a due date of 6/24 but is showing a last statement balance of 406.00 as of 5/27. Should have I paid it before 5/27 to help with the utilization part of the score. Hopefully I'm not confusning everyone. Like I said I'm just starting.

The big thing is I never want a balance past the due date?right?

Thanks for the help

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Hello, to help with utilization you want to pay your balance down by the 27th. My bill is also due on the 24th of each month and a new statement is generated on the 27th of each month. What your balance is by the end of the day on the 27th is what will post to your credit report.

[Anonymous]

Thanks

[juniornj23]

The best you can do is pay in full 2 days before due day then charge 5% of the card let the bill cut
0 UTL is not the best fico love to see at least 5 %

[Anonymous]

Thanks learning more every day

[Anonymous]

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@Anonymous wrote:

started building my credit back up with 2 cap one cards with 500 limits. My plan has been to use them monthly and pay off the total amount prior to the Due dates. I'm confused though if I should be looking at the Last Statment Balance date and paying it off to zero before that date. Example is one card has a due date of 6/24 but is showing a last statement balance of 406.00 as of 5/27. Should have I paid it before 5/27 to help with the utilization part of the score. Hopefully I'm not confusning everyone. Like I said I'm just starting.

The big thing is I never want a balance past the due date?right?

Thanks for the help

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As long as you are making multiple payments during the month, the only date you will need to be concerned with is the statement date - the 27th. Just make sure you pay all but <$50 before the 27th, and the other card should be PIF before its statement date. Don't sweat it if you don't get it right, FICO has no "memory" for UTI.

With mine, I use them for everyday monthly expenses where I would normally use a debit card or cash. Then the bulk of my paycheck pays them back down twice a month. I stop using each card 5 days before the statement date so all charges get posted, and I make my payment the day before the statement date.

[Anonymous]

Thanks again to everyone that has responded. Is the statement date the same every month?

[Anonymous]

Ordinarily, yes. Some time in the mid-2000's there was a law passed requiring that the payment due date had to be the same day each month. Prior to that some banks used a straight 30 day cycle which caused the payment date to "walk"  day back every 31 day month.

With Cap One its always 3 days after the Due Date, regardless of whether its a 28, 30 or 31 day month.

[takeshi74]

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@Anonymous wrote:

The big thing is I never want a balance past the due date?right?

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It really depends on the goal but, basically:

• Pay at least the minimum by the due date to keep your account current and avoid lates on your reports, late fees, penalty APR's, etc.
• Pay the statement balance (not the same thing as current balance) in full by the due date to avoid paying interest.
• Pay prior to the report date (statement date for most but not all cards) to reduce reported balance/revolving utilization.

You can certainly have a current balance past the due date while avoiding the accrual of interest if you had charges post after the statement date as those charges fall under the following statement cycle.