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Question on making payment

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Anonymous
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Question on making payment

Maybe stupid, but curious..

 

let's say I have a statement balance due Jan. 5th for 1500 with min. payment due of $25. If I paid let's say 500 now then 1000 again before 1/5/16..does that still count as paying full statement balance? is it correct that credit score history doesnt get accounted for until AFTER your statement due date?

Message 1 of 6
5 REPLIES 5
Aahz
Established Contributor

Re: Question on making payment


@Anonymous wrote:

Maybe stupid, but curious..

 

let's say I have a statement balance due Jan. 5th for 1500 with min. payment due of $25. If I paid let's say 500 now then 1000 again before 1/5/16..does that still count as paying full statement balance? is it correct that credit score history doesnt get accounted for until AFTER your statement due date?


Yes, that still counts.  The number of payments is irrelevant, only the total amount paid by the due date is relevant.

 

As for your credit scores - each month creditors report both statement balance and amount paid since the last statement.  So, even if you make payments after the due date (but before the statement cuts) the total amount paid during the statement period will show up on your reports and thus effect your score.  Again, the number of individual payments is irrelevant, just the total amount paid during the statement period.

Message 2 of 6
TrialByFire
Established Contributor

Re: Question on making payment

The only stupid question is the one that goes unasked Smiley Happy

First, in your scenario, yes if you made multiple payments totaling your statement balance, that would reflect statement paid in full.

There are 2 important dates: the due date and the statement closing date. The due date is just that: when your payment, at least the minimum, is due.

The statement closing (aka cut) date is the one many of us pay attention to for scoring/apping purposes. Let's say your payment is due the 5th, well the statement will close/cut 3-6 days later depending on the bank. Chase is 3 days for me, Amex is 6 days. Whatever your posted balance is at the time the statement cuts is the amount reported to the credit bureaus.

Does that make sense?
Message 3 of 6
NRB525
Super Contributor

Re: Question on making payment


@Aahz wrote:

@Anonymous wrote:

Maybe stupid, but curious..

 

let's say I have a statement balance due Jan. 5th for 1500 with min. payment due of $25. If I paid let's say 500 now then 1000 again before 1/5/16..does that still count as paying full statement balance? is it correct that credit score history doesnt get accounted for until AFTER your statement due date?


Yes, that still counts.  The number of payments is irrelevant, only the total amount paid by the due date is relevant.

 

As for your credit scores - each month creditors report both statement balance and amount paid since the last statement.  So, even if you make payments after the due date (but before the statement cuts) the total amount paid during the statement period will show up on your reports and thus effect your score.  Again, the number of individual payments is irrelevant, just the total amount paid during the statement period.


This should only be done after you have made at least the minimum payment by the due date. Never miss that minimum payment amount before the due date. And it is hit or miss whether payments after the due date will be processed and included in the statement balance. Possible, yes, not guaranteed.

High Bal Jan 2009 $116k on $146k limits 80% Util.
Oct 2014 $46k on $127k 36% util EQ 722 TU 727 EX 727
April 2018 $18k on $344k 5% util EQ 806 TU 810 EX 812
Jan 2019 $7.6k on $360k EQ 832 TU 839 EX 831
March 2021 $33k on $312k EQ 796 TU 798 EX 801
May 2021 Paid all Installments and Mortgages, one new Mortgage EQ 761 TY 774 EX 777
April 2022 EQ=811 TU=807 EX=805 - TU VS 3.0 765
Message 4 of 6
TrialByFire
Established Contributor

Re: Question on making payment

+1000 ALWAYS ALWAYS ALWAYS make at least the minimum payment on time
Message 5 of 6
takeshi74
Senior Contributor

Re: Question on making payment


@Anonymous wrote:

is it correct that credit score history doesnt get accounted for until AFTER your statement due date?


Payment is due by the due date.  The minimum is the minimum required to keep your account current,  If you intend to pay the statement balance in full then as long as you pay the amount of the statement balance by the due date you're good.  It doesn't matter if you do it in 1 payment or in X payments.

 

Your Payment History isn't adversely affected until you're 30+ days late and you have not paid at the least the minimum.  If you've paid at least the minimum by the due date then your Payment History will be fine even if you don't pay the full statement balance.

 


@Aahz wrote:

So, even if you make payments after the due date (but before the statement cuts) the total amount paid during the statement period will show up on your reports and thus effect your score.


Picking nits but it won't effect the score.  The score already exists.  It can, however, affect the score.

 

Payment History is concerned with whether or not payments are on time and least the minimum.  The balance impacts score based on impact to revolving utilization which falls under Amounts Owed.

http://www.myfico.com/crediteducation/whatsinyourscore.aspx

Message 6 of 6
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