When to Pay Your Credit Card Bill (Pay $0 Interest and Increase Credit Score)

When to pay your credit card bill?
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If you want to pay $0 interest on your credit card and increase your credit score, then you need to make at least two payments each month. You'll need to pay off your statement balance in full by the due date in order to pay no interest, then you'll need to pay down your remaining balance as low as you can right before the billing cycle ends. Because once your billing cycle is closed, the new balance is given to you and the credit bureaus and they like to see your credit usage below 30%. Confused? This video should help.
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#honestfinance #creditcards
0:00 - Start
0:17 - What's the billing cycle?
1:07 - Pay $0 interest
2:36 - Increase credit score

[@HonestFinance]

Enjoy the video! Comment below if you have any questions, thanks :)

[@YZFMX256]

Wish they would teach a class like this in highschool as an elective. I never knew any of this until recently. This is needed more in every day life vs something like calculus

[@tonjirucker999]

They'll never do that if that means they can't maintain wealth beyond YOUR wildest dreams. Btw: This and other "life skills" used to be taught in many schools. They hid it from "others" and then when it started being "shared" (intentionally & unintentionally), they got wind and changed the game.

[@mountshine13]

These tips will definitely help people get knowledge and those who are struggling, your video will be a problem solver for them. Great Insights. Keep it up

[@lindaanderson279]

Excellent ! I always wondered why the billing cycle was on the 17th instead of the first . I’ve had my card for years and couldn’t tell you what date I opened it . But I will remember when I close it .🎉🎉🎉

[@StrivingFR]

This was really helpful and straight to the point, much appreciated bro.

[@kurmit0076]

Yes finally you made the video I was trying to figure out how this worked and only rich people talked about this and i managed to squirm my way around then when they did talk about it.

[@YasinNabi]

I am very grateful that we can find great educational videos on KZbin nowadays. I really appreciate your efforts making these videos. subbed and liked ! a fellow creator

[@buildingtablesllc2999]

Very Clear and concise. Thank you!

[@HonestFinance]

You’re welcome. Glad it made sense

[@RatedRGameGuy]

Yup, been doing this for years and IT WORKS. I generally don’t spend a lot on my credit card and I don’t put anything on it that I can’t pay by cash. Then 2-3 times a month I’ll put a payment towards my credit card until it’s zero by the end of the month.

[@HonestFinance]

Yes it does work. I’ve tested it multiple times 😎

[@TheIdeaVault]

THANK YOU!! Finally! simple, concise and useful information on this subject! And I liked how you said around 5:33 "this is what I did..." so we know it works and I love the simplicity of this action. Thank you!

[@jeancontreras6793]

Super easy explanation and you are saving money to the people. Thanks

[@HonestFinance]

Happy to help

[@utoo45]

Very useful information. Thank you!

[@HonestFinance]

You’re welcome. Thanks for watching

[@scratcherscratcher11]

So cool! Great video! Thanks for confirming what I thought it was! I pay full balance off before due date 95% time!!

[@HonestFinance]

Glad it helped :)

[@naimafikri193]

Awesome presentation keep the good work!

[@HonestFinance]

Hey thank you!!

[@stephen2353]

Appreciate this video, keep up the work!! Question: How should we pay our credit card bill if we have autopay on? I set the autopay to the outstanding balance for the previous month. Should I let my bank autopay at the due date, then pay the outstanding balance right before the statement closing date?

[@HonestFinance]

I wouldn’t worry about it if your balance that’s reported is less than 30% of your limit each month

[@dral22]

F that 😅 I go beyond playing it safe, once it's out of pending and available to pay, I pay immediately. That way I don't have to worry about a billing cycle or so called closing date

[@samjim89]

I'm not to great at math so I also do this. But my aunt says to wait so you can at least aquire interest on the money for as long as possible.

[@Sal-kk1nk]

@@samjim89 that is an old school myth (probably pushed by the banks) never hold a balance. Pay the entire balance by the end of the month

[@ceciliaruns72]

Keep it under 10% but the sweet spot is 1-4%.

[@motherof4540]

i'm looking for the best card to transfer a balance for slightly over a year to pay off & not really use for anything else, we do plan to travel after its paid down though.

[@HonestFinance]

The freedom unlimited card has 0% balance transfer right now. It’s a good card

[@excitinglife2302]

I'm even more confused! If the payment is due before the statement closure date, are you suggesting on the due date to pay not in full but just enough to leave a 10% of the credit limit use, and then pay the rest before the statement closure date? Wouldn't you have then to pay apr interest because didn't pay in full and also get a bad score bc not paying in full on due date? Could you please explain this detail in particular 🙏🙏

[@HonestFinance]

Pay the statement off in full to avoid interest by the due date. Then make another payment right before the billing cycle closes, so the new balance is reflected on the next statement (which is given to the credit bureaus ) Does that make sense? I don’t want you paying any interest

[@BenWinder108]

I pay my credit card every 4 or 5 days lol. Don't no if it's bad to do that but my credit has shot through the roof.

[@HonestFinance]

It’s not bad at all

[@Cruzan9]

Good info. Also, I hate to be that guy but I'm going to be. I know a lot of things these days people overlook and it's new times, blah blah blah. The information you shared is what's most important etc etc. Well, while that may be true, I'm from a world where presentation is also important. I found your shirt very distracting; I couldn't tell if that's the style or if it desperately needed ironing. I remember when ripped jeans became a thing and it stuck. I still cringe. Okay, I digress. Thanks again for the info, it was very helpful.

[@61marley]

Im confused, example, due date is 6th, report date is the 10th. Should I Pay in full by 6th, and couple days later and spend under 30% amount within the 4 days so I have a balance? In other words, if I pay in full by due date, this only is a 4 day window before report date and credit card would report zero utilization.

[@tw4943]

SO If my Due date is the 28th of every Month, I should Pay it off or pay it down as much as possible AND if my Statement CLOSING date is the 3rd of the following month, I should Pay it OFF or down as much as possible on the 1st of every month because on the 3rd it reports to the (3) credit bureaus and on the 4th starts the NEW period ? Is that correct?

[@HonestFinance]

Yup! That’s correct. It’s a little confusing, but paying it down before it’s repotted can increase your credit score

[@tw4943]

@@HonestFinance thank you for the reply and the video posting. Great content✅

[@kurmit0076]

Wait this video didn’t make to much sense to me. I know what it was you need more usage of the calendar in this video

[@jarrideniesesmith-brown9137]

Every credit card I have has a 25 day billing cycle.

[@DanielaRojano]

*Hi I used my chase freedom CC, according to the app, my due date is every 5th of the month (Right now it says June 5th) & I made a purchase yesterday, my question/concern is does the purchase count for June 5th or counts for July 5th due date? And what if the pending amount settled on on June 5th? Am I in any interest/trouble? This is my first time purchasing something a few days before a due date if that makes sense, can you please clarify me? Thank you*

[@HonestFinance]

Don’t worry. It’ll be on the next statement due July 5

[@bt5547]

Do I have to pay the current balance on the due date or not?

[@HonestFinance]

Pay the statement if you don’t want to Pay any interest

[@Yon_Solo]

You said I should be allowing only 30% or less of my limit to be in my total balance by the end of the month. This then would give me a statement balance when the new billing cycle starts. Let's say I have enough money to pay my entire total balance in full and nothing is in my current statement balance. Should I pay off the entire total balance before the billing cycle ends, which would then make the next statement balance 0? Or should I purposly leave 10% - 30% of the limit in the total balance by the end of the billing cycle, to allow it to give me a statement balance to pay off instead? I know both would leave me intrest free, but would one help my credit more than the other?

[@HonestFinance]

Honestly I’d just pay it down to $0 if you have the money and it’ll always be the best for your credit score. $0 is great when you’re actively using your card (you don’t have to leave 10-30%). And I’d really follow the $0 rule if you’re planning on pulling your credit for something like a house or car.

[@HonestFinance]

Some people say $0 will act like you’re not using the card . I’ve tested this theory and I saw an increase personally

[@stefanfaulkner5169]

@@HonestFinance Hi, just a quick question, if I always put it to $0 how would they know I am actively using the credit card and it's not just there not being used? Thanks! Great Video!

[@HonestFinance]

They know because there’s still transaction history

[@magssg15]

@@HonestFinance does maxing out my card and paying it off before due date hurt my credit?

[@busimo]

Okay so I received my card on 1st of Nov and it says my statement closes on 25th of Nov. So that means I have to pay by 25th of Nov right? But I'm not sure when my due date is. What you said after 5:15 is really confusing to me. You said in your example that the due date is on 25th and you pay by 20th (which is to avoid interest) but your closing statement date is on 30th so within 10 days you clear your balance again before the closing date? I think in this example, keeping the due date and closing date far apart is creating problem. Is it not possible to have our closing date on 25th and then due date on 30th? I think that would make more sense because we can just pay our main balance before the 25th and then clear off the remaining just before the due date? If you want to have your statement open on 1st of each month and ends on the 30th, wouldn't it be easier if you have your due date like 5 days after your statement date, which would be like 5th of the next month? This is my first time so I'm kinda confused because of the example you gave when you said due date is on 25th and closing is on 30th. I think it begs the question, due date of which month and statement date of which month. Sorry for writing so long but I'm kinda confused plus desperate.

[@HonestFinance]

It’s all good . Just pay off the entire statement balance by the due date, then pay down the card right before the statement cycle ends and you’ll be good

[@busimo]

@@HonestFinance Just found out my due date is 20th of December and my direct debit is on 9th of december. So if they take my money on 9th, what happens between 9th and 20th of December? I don't have to pay before December 20th as well, right? Because they said the payment process takes around 10 days so direct debit is 10 days before my due date. It's all confusing lol. I was thinking to pay it twice like you said, before the statement date and before the due date lol.

[@HonestFinance]

You’ll be fine. After you pay off the statement balance, you’ll just accumulate the same thing for the following month

[@busimo]

@@HonestFinance So statement balance is when it all resets and if I pay everything off before statement balance every month, I'm good?

[@HonestFinance]

Pay attention to the statement closing date. That’s when all the info is reported

[@ragingelefants]

I'm confused. You say pay 100% before due date. But turn around and say pay off card before statement date. So what are you suppose to pay if your balance is zero? Can you please explain it like I'm a 3rd grader?

[@HonestFinance]

If the balance is $0, then you’re good. Just pay off the statement balance in full by the due date (for $0 interest) and then pay it down again right before the statement (billing cycle) closes to potentially boost your credit score

[@ragingelefants]

@@HonestFinance Ahhh, that makes way more sense now :-) Not sure why I wasn't picking up on it before. Thank you for relying.

[@HonestFinance]

You’re welcome. It can be confusing

[@luism8612]

@@ragingelefants what does he mean by pay it down again? If it’s already been paid for fully 😭

[@HonestFinance]

Any other charges that accumulated during the grace period can be paid down to decrease the balance when it’s reported

[@yunggloboxing4718]

No matter how many of these videos I see I still don’t understand !! You just said to pay it off on the due date(25th) but at the end of the video you said you payed it off before the cycle ends(30th) but your due date is on the (25th)???

[@HonestFinance]

Pay on both dates

[@liljo911xxx]

Credit card companies hate this guy..

[@HonestFinance]

I’m sure they hate Dave Ramsey more :)

[@Dark_Angel-16]

I've been paying full amount of my credit card before due date. when it gets on billing cycling day sometimes it is on 0$ or minimum ....it's that bad that I just make one payment before due date and that's it ? I don't spend much before billing cycle ends tbh

[@sciencelabvideosl7558]

5:25

[@khalilcarter1605]

Is it a good or bad thing to use the credit card but when the due date comes you pay back 100% meaning according to the statement you used 0%

[@HonestFinance]

That’s what I do and it’s always helped my credit score

[@khalilcarter1605]

@@HonestFinance when doing so, do you pay before the statement balance closing date or before the due date?

[@khalilcarter1605]

@@HonestFinance another question is, is a positive balance a good or bad thing to have, meaning when you pay more than the required amount.

[@HonestFinance]

Both. Pay off your statement balance before the due date, then make another payment before the current statement closes. Sorry it’s so confusing

[@HonestFinance]

It’s always good to keep your balance low, so paying more will help

[@El.Music-]

Do you need to use your your credit card after your due date payment or wait after closing statement?

[@HonestFinance]

I still use it like normal , then I make one more payment before the cycle closes

[@adamadore2417]

Just call up your credit card, LOL