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When to pay CC Balance?

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OniStringer
Regular Contributor

When to pay CC Balance?

Just out of curiosity. Should I pay the balance ON the due date? Or pay in full BEFORE the due date? What is the most ideal? 

Started with LOW 500s - Actively rebuilding as of early 2019
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Message 1 of 25
24 REPLIES 24
pizzadude
Credit Mentor

Re: When to pay CC Balance?


@OniStringer wrote:

Just out of curiosity. Should I pay the balance ON the due date? Or pay in full BEFORE the due date? What is the most ideal? 


Creditors generally don't care as long as your payment is on time and you likely won't get bonus points for paying early. 

 

I generally pay all my monthy bills on the same date, which results in some creditors getting paid on the due date and other getting paid earlier than the due date.

March2010 FICO® ~ 695 TU, 653 EQ, 697 EX
Message 2 of 25
mgood
Valued Contributor

Re: When to pay CC Balance?

Before the statement date, to show zero balance on your reports. 

On or before the due date to avoid paying interest. 



EQ8 778, TU8 771, EX8 770 as of June 14
AZE3 - 1% Utl - New Accts: 2/6, 3/12, 7/24
Message 3 of 25
Horseshoez
Senior Contributor

Re: When to pay CC Balance?

If you're looking for all zero balances, you want to pay either the day or the day before your statement cuts.  If you want to let a few small charges report, then pay the day, or the day before the due date; this is how I do it and there are almost always a charge or two which shows up on my statements which in turn means I'm typically all-zero except one or two; occasionally I end up all zero which results in a temporary loss of FICO points.

Chapter 13:

  • Burned: AMEX, Chase, Citi, Wells Fargo, and South County Bank (now Bank of Southern California)
  • Filed: 26-Feb-2015
  • MoC: 01-Mar-2015
  • 1st Payment (posted): 23-Mar-2015
  • Last Payment (posted): 07-Feb-2020
  • Discharged: 04-Mar-2020
  • Closed: 23-Jun-2020

 

I categorically refuse to do AZEO!

In the proverbial sock drawer:
Message 4 of 25
OmarGB9
Community Leader
Super Contributor

Re: When to pay CC Balance?

Depends on what you're trying to accomplish. Are you trying to do AZEO and you're asking about the one card you're supposed to leave a balance on? Or are you just asking in general? If you're just asking in general, the answer is: it's completely up to you. So long as you pay at least the minimum by the due date, payment history wise you'll be okay. Obvioisly you'd have to pay the full statement balance to avoid paying interest by the due date.

Now, if you want to optimize scores, then that's when you'd implement AZEO (All Zero Except One, wherein you pay all cards down to zero balance BEFORE their respective due dates, except for one card you'd leave a small, <8.9% balance on).


Last App: 1/10/2023
Penfed Gold Visa Card

Currently rebuilding as of 04/11/2019.

Starting FICO 8 Scores:




Current FICO 8 scores:


Message 5 of 25
Rogue46
Established Contributor

Re: When to pay CC Balance?

I pay off my cards sometimes daily. I just hate seeing balances on any of my accounts..





Message 6 of 25
SouthJamaica
Mega Contributor

Re: When to pay CC Balance?


@OniStringer wrote:

Just out of curiosity. Should I pay the balance ON the due date? Or pay in full BEFORE the due date? What is the most ideal? 


You should pay before the due date.  Dangerous to leave things to the last minute, and in many cases the due date keeps changing.

 

I pay many of my accounts before the statement even cuts, thus maintaining them at zero reported balance.


Total revolving limits 651200 (530700 reporting) FICO 8: EQ 706 TU 714 EX 715

Message 7 of 25
OniStringer
Regular Contributor

Re: When to pay CC Balance?


@OmarGB9 wrote:

Depends on what you're trying to accomplish. Are you trying to do AZEO and you're asking about the one card you're supposed to leave a balance on? Or are you just asking in general? If you're just asking in general, the answer is: it's completely up to you. So long as you pay at least the minimum by the due date, payment history wise you'll be okay. Obvioisly you'd have to pay the full statement balance to avoid paying interest by the due date.

Now, if you want to optimize scores, then that's when you'd implement AZEO (All Zero Except One, wherein you pay all cards down to zero balance BEFORE their respective due dates, except for one card you'd leave a small, <8.9% balance on).


Appreciate this response as this was the main information i was looking for. Should have mentioned for score optimization, but thanks to everyone else as well as I was curious how people go about it. 

Started with LOW 500s - Actively rebuilding as of early 2019
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Message 8 of 25
SouthJamaica
Mega Contributor

Re: When to pay CC Balance?


@OniStringer wrote:

@OmarGB9 wrote:

Depends on what you're trying to accomplish. Are you trying to do AZEO and you're asking about the one card you're supposed to leave a balance on? Or are you just asking in general? If you're just asking in general, the answer is: it's completely up to you. So long as you pay at least the minimum by the due date, payment history wise you'll be okay. Obvioisly you'd have to pay the full statement balance to avoid paying interest by the due date.

Now, if you want to optimize scores, then that's when you'd implement AZEO (All Zero Except One, wherein you pay all cards down to zero balance BEFORE their respective due dates, except for one card you'd leave a small, <8.9% balance on).


Appreciate this response as this was the main information i was looking for. Should have mentioned for score optimization, but thanks to everyone else as well as I was curious how people go about it. 


Unfortunately @OniStringer the red part of that statement is not correct, undoubtedly a typo by @OmarGB9 Paying before the due date is meaningless in terms of AZEO.  It has to be before the reporting date if you want it to report at zero.  The reporting date is usually, but not always, the prior statement date.

 

E.g. assuming (a) you want account to report at zero on next reporting date (b) account uses statement date as reporting date and (c) there are no new charges:

 

- Jan. 5th statement balance 100, due date Jan. 28th, next closing date Feb. 5th

 

- Payment in full before Feb. 5th if you want it to report zero balance, payment in full before Jan. 28th if you want to avoid interest

 

 

 


Total revolving limits 651200 (530700 reporting) FICO 8: EQ 706 TU 714 EX 715

Message 9 of 25
OmarGB9
Community Leader
Super Contributor

Re: When to pay CC Balance?


@SouthJamaica wrote:

@OniStringer wrote:

@OmarGB9 wrote:

Depends on what you're trying to accomplish. Are you trying to do AZEO and you're asking about the one card you're supposed to leave a balance on? Or are you just asking in general? If you're just asking in general, the answer is: it's completely up to you. So long as you pay at least the minimum by the due date, payment history wise you'll be okay. Obvioisly you'd have to pay the full statement balance to avoid paying interest by the due date.

Now, if you want to optimize scores, then that's when you'd implement AZEO (All Zero Except One, wherein you pay all cards down to zero balance BEFORE their respective due dates, except for one card you'd leave a small, <8.9% balance on).


Appreciate this response as this was the main information i was looking for. Should have mentioned for score optimization, but thanks to everyone else as well as I was curious how people go about it. 


Unfortunately @OniStringer the red part of that statement is not correct, undoubtedly a typo by @OmarGB9 Paying before the due date is meaningless in terms of AZEO.  It has to be before the reporting date if you want it to report at zero.  The reporting date is usually, but not always, the prior statement date.

 

E.g. assuming (a) you want account to report at zero on next reporting date (b) account uses statement date as reporting date and (c) there are no new charges:

 

- Jan. 5th statement balance 100, due date Jan. 28th, next closing date Feb. 5th

 

- Payment in full before Feb. 5th if you want it to report zero balance, payment in full before Jan. 28th if you want to avoid interest

 

 

 


Indeed, I've been sleep deprived lately. Smiley Happy  I meant statement date, yes, which is usually the same as the reporting date with the exception of US Bank and a few other banks/CUs.


Last App: 1/10/2023
Penfed Gold Visa Card

Currently rebuilding as of 04/11/2019.

Starting FICO 8 Scores:




Current FICO 8 scores:


Message 10 of 25
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