Statement closing date vs. balance due date on your credit card bill!

[@kingsaw5282]

Y’all love making credit confusing af for no reason at all

[@MsLady-sd6pz]

KZbin life, everybody has a solution to every life situation. Or a follow me I’ll show you how to get rich.

[@RubyGxoxo]

You’d be surprised at how ignorant people are when it comes to credit. Even people who have accounting degrees can get confused. One example: Our credit statement actually goes from the beginning to the end of each month, but the statement is dated for the 1st-4th of the next month. A lady thought we were supposed to account for those expenses for the statement month and not the month that they were incurred. Pretty simple, but she got it wrong.

[@existing196]

The system gotta make it confusing to rip us offf out of our money if anything. I was trying not to have a credit card ever but apparently you need credit in order to buy certain things like an appartement, housing, cars, electronics (unless you buy those items in full which is v hard unless ur rich) so now I need to have credit which is stupid. Why can’t I use my own money to buy everything. It’s stupid

[@01Wany]

It’s not confusing it’s all truth

[@eprahs1]

You ok?

[@fleurmal7648]

-Buy stuff in January. -The statement is given February 1st, which shows the statement/list of what you bought in January. -The bank says the due date to pay for January's items is March 1st. Just pay your balance as soon as you get the statement. You will build credit that way and not get behind on payments, and also don't have to worry about interest. Don't buy things you cannot afford (unless there is an emergency).

[@NoirRaven]

Love how you think we can afford to pay off large, substantial amounts of cash within a month of a statements arrival 🤣

[@JRush374]

Bad advice. Pay on the due date. You're giving the bank a free loan when you pay on the statement date. Make them give you the loan.

[@fleurmal7648]

@@NoirRaven this was more a comment of how to start of with credit card and avoid going into debt (by only paying for stuff you know you can afford. I pretty much only bought groceries on my credit card for many years.) You are right this is not usually option for those tackling debts that have already built up.

[@fleurmal7648]

@@JRush374 It's a good option if you don't wanna pay interest and may not be the best at keeping track of payments. I also get cash back on groceries, so paying immediately gets me free money since I don't pay interest. My parents were wracked with credit card debt cause they bought stuff they didn't need and got behind on payments, so I just do what I can to ever avoid starting that downward spiral.

[@surveytestmoney2550]

Weird, bcus whatever I purchase in whatever month prior, my credit card shows a due date of the 2nd of the next month, not 2 months later. I used my card Aug 12-24th. They want their money by Sept 2nd and they shall have it... ALL of it..BEFORE Aug 31st!🤣

[@f.-j.j.5738]

This is true, but if you can afford it, pay it all off, to zero, before your balance due date, every month. I only use my card for the perks. To me it's like a debit card. Usually immediately after I use it, I pay it off in the evening.

[@phenitagomes1292]

That's what I was thinking

[@tomcat8662]

Exactly

[@Sandyyyyyyyyyy]

I just have my card set to autopay the statement amount every month because same.

[@JRush374]

You're giving the bank a free loan for about a month. Stop doing that. Just pay it off on the due date. Let your money make you money in the meantime.

[@LovelyLady1111]

@@JRush374 yes you are so right!!

[@mR-dc4oq]

Pay it all off before your closing date and your credit goes up.

[@doncherf2610]

Your credit goes up if you pay it off before the due date. If you're paying by the closing date, that is before the due date, so your credit score obviously goes up. However, be careful. Example: If you pay your balance off 4 days before the closing date, then use your card 2 days before the closing date or if you have a pending charge that completes after you paid off your card, then you will end up with a missed payment including a penalty fee and interest charged. Because either of those examples got added to that cycle you thought you paid off and they need to be paid by the due date which you will not notice until the next closing date which is too late. Stick to the due date, and ignore the closing date. If you pay on or before the due date every month, your credit score will go up.

[@heavenlypickler]

@@doncherf2610 According to your example, is it better to pay by due date or closing date? I pay it off on due date and my credit score is going up. After watching this clip, I am confused??

[@2.5chainz]

@@doncherf2610 or just don’t pay off it 4 days before the closing date? The day before was obvious if you ask me

[@AllAboutPurple]

Just leave 1% of the CL to report & you can pay the rest afterwards…. Leaving some balance will show that you are using the card responsibly. Which is how you get credit limit increases & increased scores.

[@stephenroberts2526]

Keeping the account open and active is the key. I have seen my score go up by paying off my card in full each month. So, I really don't see an advantage to paying interest on any balance.

[@2718aj]

I might actually be stupid because this left me even more confused and I wasn’t confused before watching this Edit: I know how it works it’s pretty straight forward and simple but she made sound so confusing like it’s rocket science

[@CCCCCCCCCCCmany]

Me too

[@lolitzshelly7229]

And her tone… I guess I might be sensitive too :(

[@trichey1712]

You are paying for the amount you spent in month a in month c

[@clarkroath926]

From April 22 to May 21 you can buy whatever you want. By June 18 you have to have paid for all of that or else you pay interest aswell

[@martha_aj4386]

The statement balance is the amount you charged in the previous period. This is what you pay by the due date. If you pay the statement balance, you will not pay interest. Purchases in the current time period( between the last statement date and current) are added to the statement balance after the statement closing date.

[@rowdywizard2071]

My parents told me when I get my billing statement, don't pay until the absolute last minute. With Capital One, you can set when you automatically pay, so I have it set to pay in full on the due date. Super easy, don't gotta touch anything. Don't complicate things

[@lets-celebrviii]

a simpler way to look at it is: pay off your statement balance by your due date to avoid interest. nothing wrong with paying off your full cc balance if you can. however, if you can't pay off your cc in full, pay your statement balance to avoid interest.

[@MidnightSky801]

I just pay off my cards to zero before the.due date. This video is very informative. Thanks.

[@stargazeronesixseven]

🙏 Thank You So Much for reminding us , that we still have Credit Card bills to pay next month for this month's purchases! ☠

[@timekabolden5309]

😂😂😂😂

[@sinned96]

HOW TO CORRECTLY PAY A CREDIT CARD! 1) Find your due date on your statement. Now that you have it, FORGET IT. NEVER worry about it again, wipe it fron the calendar, it never existed. Due dates are for calculating interest charges on the card only, not for utilization. So it does not matter what the interest rate is on a card since you never pay any as long as you pay your previous statement balance in full. 2) Now find the statement date, also called closing date or cycle end date. Put that date in big red letters on everything in the house. The kids forehead, calendars, front door glass, bathroom mirror, you get the idea. 3) Now two days BEFORE that date, pay down your card balance to 1-4% of the card limit. So if you have a $300 limit you need to pay down the balance so there is $3 to $12 left on the card. Leave it with a balance. The credit card will report to the credit bureau that you have 1-4% utilization for that card. This is the BEST percentage for FICO score boost. 4) Now this step is an important part to remember. Soon as your statement closes and reports, your due date will show the min due in 20 or so days away. This is the date you have to pay by to avoid any interest, but we dont care!. Now 2 days after the statement date, you know the one wrote in big red letters all over the house? Pay the card balance off back to Zero. Now you have already made the min payment due by the due date and avoided any interest charges. 5) You have eliminated your due date, reported the best utilization, and avoided any interest payments all with in 4 days. Now your card has a zero balance and you can use it as much as you want. You can MAX the card, pay it down again, MAX again, do what ever you like. BUT, look for your next cycle end date and start all over again. Go back to step 2 for that date. Repeat every month. You will never pay interest, can maximize your rewards if it is a rewards card and still get a great FICO boost. IF YOU ARE IN MID-CYCLE READ HERE Your due date is NEVER before the cycle date. You are seeing the due date from the last cycle date period. You need to pay down to 1-3% or pay down to zero BEFORE your upcoming due date and start the process from the beginning at the next cycle date. If you follow the steps above with a 1-4% balance at your cycle date you will never have to worry about a due date again as you will have a zero balance due on the due date. Follow this above it works extremely well. You want to make sure your previous statement balance is paid in full before the due date that way you don't get charged interest. The best time to pay your credit card bill is 2 days after getting your statement that way you have satisfied your credit card bill for the month way before your due date. Then you can go ahead and charge your card up whatever you want and then two days before the statement date bring your current balance down to 1 to 4% of your credit limit. Let that report your new statement balance will be that 1 to 4% that you left. Pay that 2 days after getting your statement. And repeat the same process next month. Oh and you need to be consistent with doing this keep it the about same amount every month.

[@alisonmiller4961]

This right here!! This is how I got my score up quick and bought our house 3 years ago ❤

[@PauloNavarro]

Me: This sounds like good information. I should pay attention. Me 10 seconds later: Wait... I completely stopped playing attention.

[@ItsTimeMichael]

Grace period folks. Avoid the hassle altogether with maintaining a very low credit utilization & never carry over a balance month to month, especially on credit cards...never.

[@mariemika8929]

Thank you for this break down it was the best I have seen

[@bwoodbury5485]

And this is why the credit companies are a billion dollars industry

[@LynRuiz]

I’m not sure what the closing date of a credit card versus the due date has to do with avoiding interest. Interest is avoiding by paying the balance in full by the due date. That is it. There is no other way to avoid interest other than just PIF when it’s due. The only reason that you would look at your closing cycle date is to avoid having a bill cut with a balance on it. I do this often to pay off current balances before the bill closes so that when it is reported to the bureaus it is at $0.

[@STMARTIN009]

The closing is the dates in your billing cycle so if you make a purchase on the card the day after the closing date you won't have to make a payment the next month but the month after.

[@greeneyedredhead61]

It's good there are people like you to help people out..... I've only seen a couple of your shorts...nice job. It doesn't seem to matter how often I explain this toy ex, he still doesn't get it.....and he is in his 60's. He should already know this...but I kinda understand. My parents never taught me about money. I had to learn it all on my own. Also I am teaching my kids about money.... I wish it was taught in school.

[@impactfully5714]

Not me, I use my cc to get the rebate and pay it off immediately after use or within 2 weeks of use max.

[@joelmartinez2278]

Don't confuse yourself....just pay as much as you can to get your balance to 0, but if anything, pay more than the minimum.

[@cappy3311]

I pay my credit cards in full every Monday morning. I only spend what I can afford.

[@JoeEnos]

Worth mentioning that in a zero interest rate savings world it doesn’t really matter, but now that rates are high it could be huge. Having an extra 30-60 days to keep your cash in a 5% savings account can get you a decent chunk of change that you wouldn’t have gotten if you paid your purchases off right away.

[@ashleylongstreet4755]

I pay off my credit card balance once a week and have around an 800 credit score so I think I’m doing okay. There’s no “correct way” to pay off your credit card balance. The only way you’re incorrectly paying off your cards is if you incur any interest

[@kito1san]

In some way, you do want some balance it reports to your credit bureau. Obviously, pay the whole amount that is due on the statement before your due date. Letting the credit card report some balance is good for your credit score. There is a difference of what is reported and being delinquent, just to be clear.

[@ajbfwb]

People getting excited about her 13k credit limit, are likely people that would better off without that high a limit. Taking the attitude that you have access to $13000 any old time you want, is only going to lead down a pretty rocky road, for most.

[@ChrisCaledon]

If only these dates were as simple as that in Canada... nope, they're always due at a different date monthly. One month, it's due on the 15th, and another month it is due on the 18th, etc... so, 1st paycheque or 2nd pay.

[@stennar214]

I learned how to pay my credit card correctly and haven't paid any interest on it in over 7 years, best lesson i learned

[@kittenfloof]

I actually learned this the hard way when I was charged interest for the very first time. I noticed that I was only being charged for a fraction of the overall statement. Interest was only charged on $100 when my balance was $200. I realized that it was leftover $100 from the previous month. I didn't miss a payment, I just didn't pay it off in full and forgot. But man. That was an interesting thing to learn

[@alancham4]

Pay your bills on time… good advice.

[@alisong7120]

I get to explain this about 5 times a day. Especially that the due date doesn't change, people confusing their billing cycle days that can change month to month depending on how many days a month has. Also the fun part of explaining that last bit of interest when they pay off a balance when they are out of grace.

[@SO-ug5ns]

Thank you for the tip I know will subscribe to you faithfully and listen to follow you full time

[@everlastingobstoppa1]

I see the thing is any kind of balance bothers the shit out me and just be bugging me in the back of my head so for my own peace and mind i pay it all off. I’m sorry finance people I know it’s not right.

[@topdog8534]

This only helps if you NOT trying to build credit

[@julia_6924]

In short, she’s saying the amount reflected on your bill for this month is for last month’s purchases and you should pay it off in full by the due date stated on this month’s bill… which is what most people do so idk why she has to make it sound more complicated than it actually is.

[@fattysgarage1754]

Pay before the closing date to avoid the balance showing on your credit report. I pay the same day or within a day or 2 when the charge posts and enjoy free money with the cash back/

[@emilyblenn]

your earrings are the best things ive seen all day

[@Lillith.]

Check if you can pay it off automatically. If you set it to auto the only thing you have to do is make sure you have enough in the bank.

[@Courtneywb]

Umm you for got something…TLDR: the higher your statement balance the lower your credit score. Pay off you cards BEFORE the statement close date, or at least more than 90% of your credit limit. IE: if your credit card limit is $1000, pay off whatever amount you need to to get the balance to less than $100 by the statement close date. There’s a reason why her balance is $186 on a $13,000 credit limit card! She either isn’t using the card or is paying it off BY THE STATEMENT CLOSE DATE so she doesn’t have a high balance. In reality you should be paying your credit card twice a month. In her example: 90% of the credit limit by the statement date on 5/21, and then the remaining 10% on the 19th of the following month to avoid interest on that 10% balance she Carried Long version: You forgot to mention that people should actually pay off the majority of not the FULL current balance before their statement close date to prevent that card from reporting a high balance which will affect their credit utilization percentage and their credit score.

[@Bailemos888]

I'm doing it right after learning from you❤

[@yolondawyatt4922]

Love the earrings 🥰

[@noodles4921]

FYI this isn’t a rich card Requirement is 600+ cs with an income around 40k for approval And that credit limit proves she’s really close to the high end of lower class Poverty line in the United States is 35k and under

[@chelsea78344]

Wow. I had no idea. I don't have a credit card right now so thankfully I am not affected. I will pay attention to this once I do get a credit card though

[@larissacolon3371]

I pay my credit as I spend for the most part. To keep the credit usage percent low and more security when buying things. Also helps me keep better track of what I spend since I'm not using my debit card as much

[@LeeLoo_22]

I think in USA its 16 days. (CHK UR BANK) Dont let charges unpaid past 16th day. After 16 days, its with interest. If u buy smthing on 9th of month Pay it on 25th of month.

[@esexavo]

this is how to use credit, have the actual money, run you credit card and pay it the same day you usually get cash back simple

[@azizihors3598]

I fuckin love u. U answer a question i been asking for years about if I'm paying off this month or the previous month. I will subscribe now.😂😂😂❤

[@I_can_and_will]

Thank you ... Flagstaff az

[@dharmaangelg3467]

What u pay April 21- may 21 on June 18th? U said that at end but I thought u said don't pay on pymt due date...

[@timekabolden5309]

I caught that too. Just confusing!! 😅😂😂😂

[@chrisbrown8748]

Yeah I’m super anal with this😂😂😂. I have just Uber $100k in total credit limits and my balances for the entire month was $177. I never allow more than 1% of my credit limit to report on each card and even for my four charge cards I typically only let my bill be $100 or less.

[@sdot5389]

You may have high credit limits, I am similar. But you have to be actively using your credit to be attractive to other major creditors.

[@ioledelarosa9491]

This is what I need it to hear 😊thank you

[@mjp2palmtree]

I've actually wondered about this, thanks for clarifying.

[@lonzeo]

Paid my stuff off way before the statement date and my score dropped hard now I’m just waiting to see if it’s a fluke or what because I paid before the due date and shit. I’m an on time person.

[@timekabolden5309]

Prolly TOO early. U still need an active card.

[@adunnio]

@Shawng4886 explains very clear & precise on how to get the most of your points. Scroll up a couple comments before yours. And check out Shonda Martin about smart credit/road to 750. Either one is helpful.

[@LadyAngela4114]

Easy to understand, but hard to comprehend for the majority who opens a credit card. To make it worse, close minded to listen when being educated, and already made up their minds that the financial institution is scamming them or cheating their customers.

[@MrShibbles]

You forgot to mention that credit card companies report your balance on the closing date, meaning you could be showing high utilization even if you're paying your card in full every month. Sure, you won't be paying interest but your score might be suffering.

[@txmade4371]

Straight cash homie.

[@maanbustamante]

rule of thumb when owning a credit card; know the cutoff and due date. i'm actually surprised there are quite a lot of credit card users who doesn't know how the billing cycle works of their card and just rely on whatever is mentioned in the balance due 😆

[@bubbleteaaddict7275]

I just pay off my credit card bill every week, regardless if it’s due or not lol

[@Ben-tt3cg]

Good for peace of mind but you lose out on opportunity of gaining interest on that money that you would use to pay the card off in a month.

[@treycain3233]

Thank you for explaining that your paying for the previous month i just spend the past 2 hours watching videos and frying my brain trying to make sense of this and sure enough as soon as i did this is the first video i clicked on 😂

[@cinnamon5124]

They make it confusing on purpose. They don’t want you to know you are giving creditors a free early money to add to their liquidity to make more loans. It is just one month but imagine all their customers giving them money due in the next month as well all throughout the country… that’s a huge snowball of money in rotation

[@arianashah8839]

Thank you girl ! This was helpful

[@caleb6771]

I didn't realize this,great video

[@susanpozanc9944]

Love your necklaces and content, of course. I get confused about pay-off dates 🥴

[@normacastro248]

I pay mine in full all the time

[@kyryllvlasiuk]

Way to ruin your score with over utilization. My bank has a feature that it pays part of credit before sending the utilization report. Helps me avoid over utilization and under utilization. Just the perfect amount to build up the score. Have no idea if it work though.

[@evanmccue736]

I thought it's better to pay the minimum every couple months. My understanding is that making full payments every month barely helps your credit score.

[@unanimously9974]

Just set up autopay for your full balance statement and u don’t have to worry about any of that

[@BNJA5M1N3]

Yeah but they don't send the first statement until after the statement closing date for us to see when our statement closing date is so then we are set up to start off behind

[@mae1813]

Thanks that helped me alot, nobody ever told me that.

[@bendersanchez5241]

I was doing this so I don't pay Interest.glad to know I was doing it correctly

[@seamusoreilly804]

These, likely, are the same group who could not balance a checkbook against their bank statements.

[@martinwilliams5952]

Auto pay, auto pay, auto pay 😂. Make sure your pay from account has money in it in anticipation for the bill. And let it go lol SIMPLE

[@loverule9320]

Some of us don't care cuz we're immature and we just like spending money

[@MK-._.-]

Does your financial advice apply to people oversees? Im from South Africa so im curious if these things apply to me as well or if its just how things in the US work. Thank you ❤

[@SaraPooBC]

simple pay off to 0 each month never owing anything

[@vanikin4life]

I usually pay off everything before my monthly statement comes out. And when my statement comes it’s always $0 I owe

[@ednamartinez6129]

Thanks 😂 I was stressing because I didn’t have a statement yet , I just opened my credit card 3 weeks ago

[@Vanessa-fv4bt]

I made a small purchase with my Amex card. A few days later I called to pay for it, to get it over with. The lady said I can’t, I had to wait for the statement to mail to me. She wouldn’t take my payment.

[@maryjanesbaby9392]

I paid off my credit card and they close my account which I didn’t want to happen.😂

[@Daniel-z2j2v]

I pay my cards off whenever I have a balance. Haven’t paid interest in over 10 years

[@treycain3233]

One thing to mention tho is the current months utilization is controlled by the closing date so if you want to keep your utilization down then youll want to pay your current week for your example by june 21

[@usern2842]

Gotta love autopay

[@dragonsnipero509]

Never used my cc card nowaday except for hotels

[@patriciasamo3364]

Girl, I just subscribed. Thanks for the tips! Please keep these videos coming.

[@misokatsu.pomchi8840]

Love your knife earrings

[@Midash2k]

I paid mine off and cancelled them. no debt. no credit score. just a big pile of cash.... that's the way to pay off your credit card.

[@ascentttt]

Those earrings are awesome😆

[@travthomp5529]

Why would the debtor not be paying the debt? Why would you make a payment?

[@Lucysil1970]

I just pay off the entire balance every month to avoid any issues.

[@tyguy070]

Just pay it off every month, every week or bi weekly. It don’t matter. Just pay it off and don’t spend what you don’t have.

[@alchemenergyacademy6231]

That was clear as mud.

[@wendywatkins7366]

Those earrings are amazing

[@laurenfoster6668]

I have no idea of these dates you speak of. I pay my credit card off every time i get a paycheck. So twice a month.

[@ZxanderrR]

You guys are losing at the credit card game👎 She was more helpful than confusing. Credit utilization is 30% of your credit score, paying off your balance at the statement closing date almost in full makes your credit utilization lower. The lower, the better. You want it at 1-10%

[@jsqared]

I pay it as soon as the purchase isn’t pending anymore, because I use my credit card like a debit card.

[@EnzoVinZ]

It's not because they don't know the difference, it's because they never read the Terms Of Agreement. It's all there.

[@justm188]

Can you explain bankruptcy vs. Debt repayment plan?

[@MillieMuncher360]

AND some people do know the difference but can't afford to pay it until it's late

[@laraduignan2277]

Why are you getting an interest rate of 15%? Girl you’re rich, negotiate that interest rate!

[@Susan-yq8pf]

Honey I wish I could pay it off after using it smh . I've been paying on this card for probably over 6 years with a less than 4K balance smh. I can only afford to pay the minimum do and after my divorce that's all they get 😳. Try not to use it at all unless it's an emergency for food or something essential.

[@Lillith.]

Your balance is probably increasing then. Get rid of it as fast as possible.

[@BAWSMAN]

I always leave 2-5% utilization

[@Ved3sten]

Autopay for the win

[@Guiltfreedelight]

One day there will bea glitch in software and no one will remind about the bill and everyone will have to pay a hefty interest.