When to pay before statement date

[Anonymous]

I’ve recently started working on my credit about 10months ago and I’m also fairly new to the forums, which I’ve soaked up whole lot of information from everyone! So thank you all for that!

I’m looking to practice AZEO to maximize my score. I can see my statement dates via Cap One, Chase and USAA apps but I’m wondering when I should pay it to have this report as $0. Do i pay 1 day before the statement date or 3 days before? I’ve been searching on the forums but can’t seem to find a solid answer and seeking guidance from the pros on here lol.

[gdale6]

I stop using a card 5 days before the cut, be advised if the statement closes on weekend its likely to cycle the Fri before so keep this in mind. This gives enough time for charges to post then I have them take the payment 2 days before to make sure it clears and if I am pushing it at least 3 days prior.

[wasCB14]

Sometimes a charge can post just before the statement closes, so paying on the issuer's website shortly before the statement closes won't be too reliable. Many issuers won't allow a payment for more than the current balance, regardless of what pending transactions there are.

If you push a payment via a bill pay service on your checking account, you can adjust it for pending transactions. You may end up overpaying, but the charge should post on the next statement.

As gdale6 says, you can also stop using the card sometime before the statement closes. This isn't foolproof, though. I remember I had a parking fee that didn't appear as "pending" until about three weeks after the transaction. I remember calling Chase because the merchant name looked like gibberish and I was couldn't figure out if it was fraud or legitimate. Fortunately, a helpful CSR was able to identify the merchant category, from which I figured out what it was.

I personally don't do AZEO. I like to earn a little extra interest on my cash, take advantage of 0% promos, use whatever card I want for a transaction, and only have to pay a statement once. I'll often have 6 to 12 cards report balances. Even for a rebuilder, it only seems worthwhile if you're likely to apply for credit within the next payment cycle or two.

My FICOs fluctuate between 740 and the low 800s, and I've not been denied credit in more than 5 years (thin file at the time).

[Anonymous]

@gdale6 Okay so no new charges 5 days before the statement date and pay 3 days before..got it!
Thanks for taking the time to reply 😄

[Anonymous]

@wasCB14 I will definitely keep an eye out for that! But yes I’m applying for Discover Cashback and an AMEX (possibly Blue Cash Preferred) in a month or two. I’m currently sitting on EX FICO 730 TU FICO 720 EQ FICO 720 and looking to get my scores up a little before the app.

[Remedios]

You can let Chase card report the balance, then pay if off as soon as it reports. Chase will report every time balance is brought to $0.00
I am not going to debate the validity of AZEO approach, but you also want to show some use on your cards.

[pinkandgrey]

As long as your payment posts before the statement cuts, your statement will reflect the zero balance (assuming you paid down to zero). Generally payments post within 1 business day. And if your statement balance is what is reported to the bureaus, then you’re good to go. 

[Anonymous]

Just so you know, you don't have to practice AZEO all the time, just do it a month or two before applying for something to get a score boost before your app, or if you're going for a CLI or something and need a score boost.

I've been in AZEO mode for the past few months as I refinance my mortgage.  It'll be a nice relief once it funds next week.

I find having 3 cards with staggered due dates (1-2 weeks apart) works well for AZEO-ing, as I can stop using the card that's about to cut a statement and move my spend to another card, or choose the card with the furthest-out closing date.

[Anonymous]

@DivorcedandBroke I’m just trying the AZEO method for a month or 2 before I apply for Discover and Amex, in hopes it helps my approval odds.

That’s good to know though because I do have 3 cards and the statement closing dates are the 4th, 14th and 27th of every month. It seems that’ll work out in my favor 😄

[Anonymous]

AZEO isn’t for credit card applications really. You can actually shoot yourself in the foot because you are seen to not be using the credit you have currently. Keep aggregate below 8.9% and leave the rest alone.