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Credit card beginner question

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Credit card beginner question

I recently got the opensky secured card and need a little help understanding my statement and how to use it.

What exactly is the statement closing date mean?

Example: my card due date is the 17th. The closing date is the 20th. I used it on the 2nd, and paid it off on the 6th.

If I use it again before the 17 will I still have to have an additional payment?

I'm sorry that sounds really confusing and stupid but I am confused lol
Thanks everyone!



Message 1 of 5
4 REPLIES 4
Valued Contributor

Re: Credit card beginner question


@Badcreditguy1 wrote:
I recently got the opensky secured card and need a little help understanding my statement and how to use it.

What exactly is the statement closing date mean?

Example: my card due date is the 17th. The closing date is the 20th. I used it on the 2nd, and paid it off on the 6th.

If I use it again before the 17 will I still have to have an additional payment?

I'm sorry that sounds really confusing and stupid but I am confused lol
Thanks everyone!




The Statement Close date is the day the monthly billing cycle for the use of the card ends, and a statement is cut/or generated.  It is also usually the date the credit card reports to the three major credit bureaus.

 

If you continue using the card, a statement amounting to the value of the unpaid purchases made will be prepared on the 20th.  Then partial, or preferably, full payment of the amount shown on the statement must be paid by the 17th of next month.

 

If you use the card again you can elect to either pay off the balance by the 20th of this month so that a zero balance will report to the credit bureaus; or you can chose to let a statement cut with the charges, then pay it by the 17th of next month.





Message 2 of 5
New Member

Re: Credit card beginner question

Thanks so much for the detailed and helpful response!

So if I use it again, say today, will I have a minimum payment due this month?

Also, is it better to carry a balance or have it paid off when the statement cuts? (Better for my credit score)
Message 3 of 5
Valued Contributor

Re: Credit card beginner question


@Badcreditguy1 wrote:
Thanks so much for the detailed and helpful response!

So if I use it again, say today, will I have a minimum payment due this month?

Also, is it better to carry a balance or have it paid off when the statement cuts? (Better for my credit score)

 

Using the dates you gave earlier as examples, here is what will happen.

 

1.  If you use the card again and do not pay the charge(s) on or before the 20th of this month, you will have a minimum payment that must be paid by the 17th of next month.

 

2.  Carrying a balance means that eventually the card issuer will charge you interest; something that many people try to avoid.  The normal course of action is to use the card, wait for the statement to be prepared on the 20th, then pay off the entire balance by the 17th of next month.  Doing so will show use of the card, but you will also avoid paying interest.





Message 4 of 5
Established Member

Re: Credit card beginner question

I also have the opensky cc. Get the app or log in online and it will always tell you when your next payment is due and how much. When it comes to the statement cutoff date, that is the close of the billing cycle when your new balance is generated. Whatever your balance is that day is what will be reported to the credit bureaus. Important if your building credit not to have too high of a balance on your statement cutoff date, less than 10 percent is optimum range. Also if you don't want to pay interest make sure you pay the new balance generated on statement date in full by due date. So in short make sure no matter what you do pay your "new balance" in full on payment due date and keep your card utilization under 10 percent before statement cutoff date and you will be good. And to your question if you already paid the minimum payment due generated from last statement then you won't have another payment due this cycle, it doesn't matter if you put new charges on or not because those charges were this cycle.
Message 5 of 5
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