Statement cut / Due date help

[dndandrea]

Ok I've been posting here occasionally and have received a lot of help. I have one more concept that I quite can't figure out. How does the statement cut and due date work? Also how does it effect my utilization? My first bill still hasn't come yet. I've done tons of research on this but can't figure it out!

To me it'd make sense that the statement cut comes before my due date so it can tell me how much I owe for that month. But now I'm seeing that the statement cut comes AFTER the due date? So am I supposed to wait a few days after my due date to pay off my bill so it shows up as 10-30% utilization instead of 0% from being paid off?

I have a $1000 limit. I charged $600 on it the other day but paid off $500 3 days later to keep the balance down to $100. My due date is the 18th of next month but after that it'll be the 5th of every month. I still have no info on my other credit card.

Please help! Thanks

[enharu]

your statement cuts a few days after your due date. generally, it is 3 days after your due date. but it can vary. to get an exact date of when your statement cuts, you should call your bank to ask.

[BrokaToe]

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@dndandrea wrote:
Ok I've been posting here occasionally and have received a lot of help. I have one more concept that I quite can't figure out. How does the statement cut and due date work? Also how does it effect my utilization? My first bill still hasn't come yet. I've done tons of research on this but can't figure it out!

To me it'd make sense that the statement cut comes before my due date so it can tell me how much I owe for that month. But now I'm seeing that the statement cut comes AFTER the due date? So am I supposed to wait a few days after my due date to pay off my bill so it shows up as 10-30% utilization instead of 0% from being paid off?

I have a $1000 limit. I charged $600 on it the other day but paid off $500 3 days later to keep the balance down to $100. My due date is the 18th of next month but after that it'll be the 5th of every month. I still have no info on my other credit card.

Please help! Thanks

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The statement that is cutting 3 days after your due date is not a statement for that same due date.

The due date 3 days prior to the statement cut you are talking about is for the last months statement cut. Make sense?

Because once your statement cuts you have approx 20-25 days (depending on the creditor) to make your payment.

So let's say your statement was cutting today. In order to report low util, you should of paid down most of your cards balance prior to today. Then your due date for the charges shown on the statement would be the 16th of next month. If you pay the remaining balance in full by then, you will not have to pay any interest.

Hope this helps.

[dndandrea]

I'm still pretty lost. Is the bill statement different from the statement cut? How should I be using the credit card to get 10% utilization to increase my credit score? Thanks

[injustifiiable]

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@dndandrea wrote:
I'm still pretty lost. Is the bill statement different from the statement cut? How should I be using the credit card to get 10% utilization to increase my credit score? Thanks

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Bill statement and statement cut are the same.

I'll use one of my card's dates as an example, since I know the dates off hand.

Say your statement cut (or statement close) date is the 25th of March.

The DUE date for that statement is 25 days from the statement close, in my case it is April 21st.

If you're looking to report a lower balance, you should pay the card down by March 25, but I'd even do it a couple days eariler to account for electronic payment processing time. I usually pay my card down on the 20th and it's reflected in the outstanding balance by the 23rd.

The reported balance will be the balance left on the card as of March 25th, less any pending transactions (but sometimes transactions performed on the 24th or 25th will post with the statement, so be careful here). This amount is what should be paid by April 21st to avoid interest charges.

It takes a couple statements to get into the groove...you'll master it in no time. Hope that helped.

[john398]

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@injustifiiable wrote:

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@dndandrea wrote:
I'm still pretty lost. Is the bill statement different from the statement cut? How should I be using the credit card to get 10% utilization to increase my credit score? Thanks

---

Bill statement and statement cut are the same.

I'll use one of my card's dates as an example, since I know the dates off hand.

Say your statement cut (or statement close) date is the 25th of March.

The DUE date for that statement is 25 days from the statement close, in my case it is April 21st.

If you're looking to report a lower balance, you should pay the card down by March 25, but I'd even do it a couple days eariler to account for electronic payment processing time. I usually pay my card down on the 20th and it's reflected in the outstanding balance by the 23rd.

The reported balance will be the balance left on the card as of March 25th, less any pending transactions (but sometimes transactions performed on the 24th or 25th will post with the statement, so be careful here). This amount is what should be paid by April 21st to avoid interest charges.

It takes a couple statements to get into the groove...you'll master it in no time. Hope that helped.

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I never had pending transactions show up on my credit report especially those pending transactions for incendentials at hotels that drop off

[injustifiiable]

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@john398 wrote:

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@injustifiiable wrote:

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@dndandrea wrote:
I'm still pretty lost. Is the bill statement different from the statement cut? How should I be using the credit card to get 10% utilization to increase my credit score? Thanks

---

Bill statement and statement cut are the same.

I'll use one of my card's dates as an example, since I know the dates off hand.

Say your statement cut (or statement close) date is the 25th of March.

The DUE date for that statement is 25 days from the statement close, in my case it is April 21st.

If you're looking to report a lower balance, you should pay the card down by March 25, but I'd even do it a couple days eariler to account for electronic payment processing time. I usually pay my card down on the 20th and it's reflected in the outstanding balance by the 23rd.

The reported balance will be the balance left on the card as of March 25th, less any pending transactions (but sometimes transactions performed on the 24th or 25th will post with the statement, so be careful here). This amount is what should be paid by April 21st to avoid interest charges.

It takes a couple statements to get into the groove...you'll master it in no time. Hope that helped.

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I never had pending transactions show up on my credit report especially those pending transactions for incendentials at hotels that drop off

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Not on the report per se, but say if you have a $50 balance on March 24th, and buy something for $10 on the 25th when the statement closes. Sometimes that $10 gets posted to the current balance when the statement closes. There are other times when the $10 will post to the account after the statement closes.

I have a Capital One card and it's happened to me both ways...that's why some would say not to use the card until the statement closes for sure.

[dndandrea]

So i should wait until AFTER my due date to pay off the balance? Use the card however I like until my due date (18th of next month) then pay down the balance to $100 before my due date. Then wait until I get my statement to pay off the rest? This won't be considered carrying the balance or making me pay interest correct?

After that I changed my due date to the 5th of every month. Will the statement come a few days after that or will it continue to come a few days after the 18th? Thanks for the help.

[john398]

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@injustifiiable wrote:

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@john398 wrote:

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@injustifiiable wrote:

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@dndandrea wrote:
I'm still pretty lost. Is the bill statement different from the statement cut? How should I be using the credit card to get 10% utilization to increase my credit score? Thanks

---

Bill statement and statement cut are the same.

I'll use one of my card's dates as an example, since I know the dates off hand.

Say your statement cut (or statement close) date is the 25th of March.

The DUE date for that statement is 25 days from the statement close, in my case it is April 21st.

If you're looking to report a lower balance, you should pay the card down by March 25, but I'd even do it a couple days eariler to account for electronic payment processing time. I usually pay my card down on the 20th and it's reflected in the outstanding balance by the 23rd.

The reported balance will be the balance left on the card as of March 25th, less any pending transactions (but sometimes transactions performed on the 24th or 25th will post with the statement, so be careful here). This amount is what should be paid by April 21st to avoid interest charges.

It takes a couple statements to get into the groove...you'll master it in no time. Hope that helped.

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I never had pending transactions show up on my credit report especially those pending transactions for incendentials at hotels that drop off

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Not on the report per se, but say if you have a $50 balance on March 24th, and buy something for $10 on the 25th when the statement closes. Sometimes that $10 gets posted to the current balance when the statement closes. There are other times when the $10 will post to the account after the statement closes.

I have a Capital One card and it's happened to me both ways...that's why some would say not to use the card until the statement closes for sure.

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oh but sometime s it could be just an authorization and never post

[seattletravels]

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@dndandrea wrote:
So i should wait until AFTER my due date to pay off the balance? Use the card however I like until my due date (18th of next month) then pay down the balance to $100 before my due date. Then wait until I get my statement to pay off the rest? This won't be considered carrying the balance or making me pay interest correct?

After that I changed my due date to the 5th of every month. Will the statement come a few days after that or will it continue to come a few days after the 18th? Thanks for the help.

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No - pay before your due date and then don't use again until after the statement closes.