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Quick question!

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Anonymous
Not applicable

Quick question!

Let's say I pay off my credit card early on full before the due date. Due the 5th but then the statements won't get to me by the 10th.

Is it OK to use credit card before statements so they get reported to the CB and utilization appears on my credit report? Or wait after the statements get to me?
Message 1 of 4
3 REPLIES 3
Brian_Earl_Spilner
Credit Mentor

Re: Quick question!

Once the statement cuts, that's what will be reported.

    
Message 2 of 4
HeavenOhio
Senior Contributor

Re: Quick question!

Welcome, @Anonymous. Smiley Happy

 

Paying the statement balance before the due date is what causes you to avoid interest. The statement date comes a few days after the due date. You should be able to find it by looking at your previous statement or somewhere in your online account.

 

For most cards, bringing your statement balance down to your desired number before the statement date will control what goes onto your credit report. Just to be sure that we're telling to to do the right thing, which bank is this card with? Do you have other cards?

 

Someone's going to ask why you want to "micro-manage" your balance, so I'll bite. Smiley Happy It's something you might want to do before applying for important credit or while testing to see how your score reacts to various behaviors. But for most people, it isn't necessary on a month-by-month basis. Most of the time, keeping the reported balance below 28.9% of your limit should be fine.

 

But if you do want to optimize, you want a single card reporting a small balance (at least $5, but not much more than that), with the rest of your cards reporting zero. If you only have one card, report a small balance rather than zero.

 

Whether or not you use the card after your pre-statement paydown depends on how high the balance might run and what's acceptable to you.

Message 3 of 4
Anonymous
Not applicable

Re: Quick question!


@Anonymous wrote:
Let's say I pay off my credit card early on full before the due date. Due the 5th but then the statements won't get to me by the 10th.

Is it OK to use credit card before statements so they get reported to the CB and utilization appears on my credit report? Or wait after the statements get to me?
If you want to report a balance on the new statement, you can either make charges between due date and new statement date after making the payment, or you can just pay the previous statement balance on due date and leave new charges this month to post to the new statement, this assuming your grace period is intact so you're not paying interest on new charges you made this month.
Message 4 of 4
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