what happens?

[elixerin]

what happens if i pay a statement bill on the statement closing instead of the due date?

or example if i pay the minimum on due date but full before statement closes will that avoid interest charges?

thanks

[Anonymous]

Here is what I do and I avoid any interest.’discover statement date is January 5th, due date is February 1st.
I wait for statement to come out (don’t pay before) and it will show the statement ending balance. Sometime before the February 1st due date, I pay they entire amount shown. Let’s say statement balance is $1,000. During the month and before I pay I run up another $1,000 so if I look at the app the balance will say $2,000. But all I pay is the first $1,000 from the statement. Then on February 5th I’ll be left with the remaining $1,000 to be paid by March 1st.

Don’t pay on the statement date because the balance in that day is what’s reported with most credit cards. US Bank is an exception and reports last business day balance on all accounts regardless of statement date.

[dragontears]

Read your card's TOS, all of mine say to avoid interest you must pay the statement balance by the due date.
Some lenders might not charge the interest if paid between the due and statement date but don't be shocked if they do charge interest

[Anonymous]

That’s exactly what I do.
But I think you have it backwards, due date always comes before statement date.
There used to be cards that did not have the 24 day grace period but I believe the law changed and it’s now a requirement.
The one exception is a cash advance where you will not have a grace period at all and will have interest starting one the day of the advance. I’ve not used an advance in 20+ years because of it.

[HeavenOhio]

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@elixerin wrote:
or example if i pay the minimum on due date but full before statement closes will that avoid interest charges?

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You'll be paying interest. You must pay your statement balance in full by the due date.

If there are additional charges that you'd like to pay down early, you may pay those up until the statement date.

[OmarR]

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@Anonymous wrote:
That’s exactly what I do.
But I think you have it backwards, due date always comes before statement date.
There used to be cards that did not have the 24 day grace period but I believe the law changed and it’s now a requirement.
The one exception is a cash advance where you will not have a grace period at all and will have interest starting one the day of the advance. I’ve not used an advance in 20+ years because of it.

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The due date comes AFTER the statement date, otherwise there wouldn't be a grace period.

Any given due date will come before the FOLLOWING statement date. If you are using that window to pay anything from the previous statement, than you will be incurring interest. As HeavenOhio correctly stated.

[elixerin]

due date jan 1, statement closing jan 7. i was wondering if i could use the extra days till a bit before closing to make payments to avoid interest 

[Nomad3]

I'm fairly certain that the interest is only updated on statement cut day and takes effect the day after the due date.

So $1000 Statement, you pay $25 before Jan1. On Jan 2 you owe $975+interest for prior month, but on Jan 6 the interest should be the same(ie they might not add 4 more days worth of interest compounding). On Jan 7, your new statement will show this as outstanding + new statement balance. Depending on how your payment is applied, whether to lowest or highest interest bearing, will determine whether your payment will go to the outstanding balance or the new balance after the statement cuts. Will need to read up on the cards information.

So yes, there will probably be interest applied but it's still be a good idea to pay again before the next statement cuts as long as you can also pay at least the minimum for the next statement before it's due date.