I am 19 and just got my first credit card. I know how to use it and I’m careful with my spending. My main confusion is WHEN TO PAY MY CARD OFF. My top priority is building my credit quickly, and I want to know the best way to do that.
I understand there is a due date and a statement date. Here are the conflicting things I’ve heard:
Pay at least the amount due on or before the due date and try not to spend on the credit card before the statement date when it gets reported to the credit bureau. But I also heard that if I pay my balance before it’s reported, it doesn’t help my credit.
I was told NOT to pay my full balance every month and leave some money on the card. Someone said, ‘I pay $100 a month on my credit cards, that’s it.’ I don’t understand why this strategy is suggested.
I was told not to pay anything UNTIL the statement date. But if I do that, the amount reported to the bureau would be higher.
I hope this makes sense. I’m really confused! WHEN do I pay my credit card and HOW MUCH should I pay?
Keep it simple. Ignore utilization, statement closing date, and current balance. Focus on your statement balance (monthly bill) and due date. Pay your card once a month, by paying off that bill in full before the due date each month. If you forget, consider setting up auto-pay for your statement balance. That’s all you need to know!
@Huxley
So the due date is before the statement closing date, right? Should I pay my credit card to ZERO before the DUE date? I just want to ensure I don’t mess this up.
LyamGenesis said: @Huxley
So the due date is before the statement closing date, right? Should I pay my credit card to ZERO before the DUE date? I just want to ensure I don’t mess this up.
Don’t stress over the statement closing date. The due date is about 21 days after the statement balance date. Pay off your statement balance before the due date.
LyamGenesis said: @Huxley
So the due date is before the statement closing date, right? Should I pay my credit card to ZERO before the DUE date? I just want to ensure I don’t mess this up.
Setting up autopay is a smart move. You’ll see all your transactions during a billing period, and by the end of that period, just pay the statement balance to avoid interest charges.
LyamGenesis said: @Huxley
So the due date is before the statement closing date, right? Should I pay my credit card to ZERO before the DUE date? I just want to ensure I don’t mess this up.
Your due date is for the previous month’s statement. Pay the statement balance before that due date to avoid interest. Focus on due dates.
DanielKelvin2 said:
WHEN to pay? By the due date. HOW MUCH to pay? The statement balance. That’s it.
Is the statement balance and the statement closing date the same? If my due date is on the 15th and the statement closing date is the 17th, do I pay on the 15th or the 17th?
WHEN to pay? Wait until you get your statement. HOW MUCH to pay? Pay the statement balance in full by the due date. That’s all. You can also set up autopay for the statement balance.
Daryn said:
You’re getting conflicting info due to various myths. Just let your statement post and pay the full statement balance by the due date each month.
Forget about the utilization myth for now. Just pay the statement balance in full each month; that’s what builds credit.
Set up autopay to pay the FULL STATEMENT BALANCE by the DUE DATE. Don’t leave a balance unless you want to incur interest. Doing this will help you build credit and avoid fees.
It can be confusing, but just pay the statement balance like everyone said. Don’t always show a zero balance; you need to use the card to show activity.