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Question about payment due dates and reporting day

I am trying to understand how billing cycles work and have two hypothetical scenarios/questions to help me understand:

Scenario 1)

Payment due date is on the 19th of each month. If I make a purchase on 7/28, will it be due 8/19 or 9/19?

Scenario 2)

Day that the card company reports to credit bureaus is on 7/27. Billing cycle is 30 days long. If a purchase is made on 7/28 and paid off in full by the next reporting day, will that utilization will show up on the credit report?

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5 Comments

  1. >Payment due date is on the 19th of each month. If I make a purchase on 7/28, will it be due 8/19 or 9/19?

    September. As long as you are maintaining your grace period, you only have to pay for purchases that have shown on a statement.

    >Day that the card company reports to credit bureaus is on 7/27. Billing cycle is 30 days long. If a purchase is made on 7/28 and paid off in full by the next reporting day, will that utilization will not show up on the credit report?

    Utilization only cares about the current balance on a “snapshot date” which for most (but not all) lenders is the statement balance. So charges paid off before they hit the statement usually won’t affect utilization.

    Unless you are applying for more credit in the next month or two, utilization typically doesn’t matter at all.

  2. In scenario 1, the bill would be due on 9/19. It would show you statement balance is $0 but your outstanding balance is wherever you bought on 7/28.

    In scenario 2, it’s unlikely but it just depends on the bank. Although rare some banks report multiple times but usually most banks report once a month. So it shouldn’t show up in your utilization.

  3. Scenario 1: I believe your 7/28 purchase will be included on your 9/19 payment date. You have about 4 weeks from your cycle closing to make your payment. So this particular purchase falls during the 7/19 to 8/19 cycle and 4 weeks from them will be your due date which is 9/19.

    Scenario 2: If you pay off your purchases before the statement closes and reports to the bureau it won’t show up in your utilization ratio. If you have a limit of $500, purchased $400 worth of stuff but paid off $300 of it before your statement closed… it’ll only report the remaining $100 balance which in this example is 20% utilization.

  4. Most important, be under 10% before the **CRA reporting date**

    To maximise CLIs, get your “secret utilization” up over 80% of CL every month, and of course get back to **zero** before the **due date**, but that is between you and your bank,

    invisible to the CRAs, except when your bank also reports “paid in full zero balance” independent of the CRA reporting date.

    High utilization carried month to month is a negative.

    Consistently below 10% by the reporting date is ideal for the CRAs, better than zero (slightly)

    and carrying over 30% month to month is **very** negative, but only a short term thing.

  5. Some sub prime cards have no grace period, charge interest from the day the charge gets posted

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