Help understanding payoffs and statement/due dates

[ShatteredReality]

Hey,

I'm a little confused around how the various dates relating to my account work so I'm hoping someone can give me some clarification. 

Lets say I have a CC with a due date of the 12th of the month. It has a statemend date of the 17th.

When I get the bill (around the 17th of the month) I pay the bill in full (assuming it's over a zero balance). Between when I pay the bill (around the 17th) and the due date (the 12th of the following month) I spend money on the card. In order for the card to be considered "paid in full" do I need to have a zero balance on the statement date or do I just need to pay the statement balance from the previous month?

Here is a example since I'm not sure I'm being clear:

1/17: Statement is generated showing a statement balance of $1,500.

1/20: I pay off the balance in full. New Balance: $0

1/12-2/17: I make purchases on the card, new balance: $500

2/9: Due date

2/17: Next statement showing Balance of $500

In this example was the balance considered "Paid in full" even though there was a outstanding balance on the due date and on the statement date?

Thanks!

[Anonymous]

No, the way you set it up, it is not going to be considered "Paid in full"

Whatever your balance is on the statement generation date is what will be reported on the credit report.

So if your balance was $500 on the statement generation date, your balance was $500 on the statement generation date. Regardless of if you had paid it down to a zero balance prior to that.

In order for the card to be considered "paid in full" the balance must be zero on the statement generation date.

[tacpoly]

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@NMCTech wrote:

Hey,

I'm a little confused around how the various dates relating to my account work so I'm hoping someone can give me some clarification. 

Lets say I have a CC with a due date of the 12th of the month. It has a statemend date of the 17th.

When I get the bill (around the 17th of the month) I pay the bill in full (assuming it's over a zero balance). Between when I pay the bill (around the 17th) and the due date (the 12th of the following month) I spend money on the card. In order for the card to be considered "paid in full" do I need to have a zero balance on the statement date or do I just need to pay the statement balance from the previous month?

Here is a example since I'm not sure I'm being clear:

1/17: Statement is generated showing a statement balance of $1,500.

1/20: I pay off the balance in full. New Balance: $0

1/12-2/17: I make purchases on the card, new balance: $500

2/9: Due date

2/17: Next statement showing Balance of $500

In this example was the balance considered "Paid in full" even though there was a outstanding balance on the due date and on the statement date?

Thanks!

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It's simple:

It shows you paid the statement balance $1500.  You paid that month's bill in full.  By doing that, you avoid any finance charges and your new $500 charge will have a grace period. 

Because you made new charges of $500, you will have a new bill next month and you will have to pay that as well. 

[MyLoFICO]

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NMCTech wrote:

Hey,

I'm a little confused around how the various dates relating to my account work so I'm hoping someone can give me some clarification. 

Lets say I have a CC with a due date of the 12th of the month. It has a statemend date of the 17th.

When I get the bill (around the 17th of the month) I pay the bill in full (assuming it's over a zero balance). Between when I pay the bill (around the 17th) and the due date (the 12th of the following month) I spend money on the card. In order for the card to be considered "paid in full" do I need to have a zero balance on the statement date or do I just need to pay the statement balance from the previous month?

Here is a example since I'm not sure I'm being clear:

1/17: Statement is generated showing a statement balance of $1,500.

1/20: I pay off the balance in full. New Balance: $0

1/12-2/17: I make purchases on the card, new balance: $500

2/9: Due date

2/17: Next statement showing Balance of $500

In this example was the balance considered "Paid in full" even though there was a outstanding balance on the due date and on the statement date?

Thanks!

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I am new to this but your question caught my eye. What motoleo said is what I do now. I pay them atleast 5 days before the bill generates so that when it does there is nothing due. I have 1 card that I pay down to 9% of its limit and then let the bill generate on that amount. The interest is low enough that it's negligible. 

If you have a low limit and need more, make multiple large payments on it. Limit 500, charge 400 then pay off, then charge more, then pay off. But when your bill generates, have a 0 balance. 

If I am wrong I am sure someone will point that out. I will watch too just in case I am. 

[noobody]

The question is more complicated than one would think

There is pay off, which is pay the whole amount AFTER statement cut, like OP and general population do. 

This way, you avoid paying interest, and take advantage the grace period credit card company offer, BUT it will show statement amount on your credit report, thus, might show high utility to lower you credit score.

there is FICO way is pay off: pay the WHOLE amount you owe BEFORE the statement is cut.

This way, it will show zero balance on credit report, lower your utility, BUT you will not take advantage the interest free grace period.

Rule of the exception:

Chase does mid-cycle report, means if you pay the current balance (statement balance + new charge) to zero, they will report zero balance at mid-cycle.

US bank report at the last business day of the month regardless when statement is cut.