Statement date versus due date - Does it matter?

[lshwn]

Hello,

If I am paying down my credit cards and not using them.  Does it matter if I pay before the statement close date? Or can I continue to focus on the due date?

[NoMoreE46]

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@lshwn wrote:

Hello,

If I am paying down my credit cards and not using them.  Does it matter if I pay before the statement close date? Or can I continue to focus on the due date?

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Due date is usually a few days Before the statement close date.  I am a litte confused.

[JM427]

I am not sure I am understanding the question.  If you make your payment on the statement close date then you are technically late on the payment, and any payment made on this date will not likely be reported until the next cycle, i.e the next month.  Typically if you make your payment before or on the payment due date, then the statement balance will be reduced by the payment amount, plus the interest accrued if any.  From a score management perspective, I would make the payment a day or two before the due date so that the statement balance is reducing each month when reported.  Hop this helps.

[Cowboys4Life]

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@lshwn wrote:

Hello,

If I am paying down my credit cards and not using them.  Does it matter if I pay before the statement close date? Or can I continue to focus on the due date?

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It very much matters.  Miss the due date and you have late fees and a possible hit to your credit score.  Make the payment by the due date and keep decreasing the balance and your score improves regardless of when the statement drops.

What I do if I am paying things down is pay the minimum on each card 3 days AFTER the statement drops.  That way I know at least the minimum is paid and there is no chance of a late fee or 30 day late on the reports.  Once that is over I calculate how much I want to pay on each card BEFORE the statement drops and then do that 1-2 days before statement drop.  

[creditfan]

it depend on how you would like to let your credit report works for you. Want it to show activities pay after statements close OR vice versa

[lshwn]

Thanks all!  I obviously didn't ask my question the right way.  Let me try again

I am paying down debt and not using my credit cards.  If I have a credit card bill due the 10th of every month -- does it matter if I pay it 1-2 weeks beforehand? Or should I just pay it on the due date?

[MrFiah]

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@lshwn wrote:

Thanks all!  I obviously didn't ask my question the right way.  Let me try again

I am paying down debt and not using my credit cards.  If I have a credit card bill due the 10th of every month -- does it matter if I pay it 1-2 weeks beforehand? Or should I just pay it on the due date?

If you aren't using them then no, it doesn't matter, as long as you pay by the due date.  

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[longtimelurker]

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@lshwn wrote:

Thanks all!  I obviously didn't ask my question the right way.  Let me try again

I am paying down debt and not using my credit cards.  If I have a credit card bill due the 10th of every month -- does it matter if I pay it 1-2 weeks beforehand? Or should I just pay it on the due date?

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If you are paying interest, you should pay as early as possible, so 1-2 weeks beforehand is good.  But in any case always pay by the due date!

I think some of the other answers were confusing cycles.    The due date is always AFTER the statement date, in that if the statement close date is say May 20, the due date will  be around June 18 (say).   Then a new statement will close June 20.   

[lshwn]

Thanks everyone!  

[MrFiah]

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@longtimelurker wrote:

If you are paying interest, you should pay as early as possible, so 1-2 weeks beforehand is good.  But in any case always pay by the due date!

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Yes, depending on the balance owed and if you are being charged interest it can definitely be beneficial to pay as early and as often as possible.  For example, if you owe $25,000 and your APR is 25% you would be charged $17.12 of interest on the first day.  The following day you would be charged interest on $25,017.12 , so about another $17.13.   Your balance after two days would be $25,034.25.  This would repeat daily until your next payment and interest would then be figured on your new balance.