HomeХобби и стильRelated VideosMore From: BeatTheBush

Credit Card Statement Closing Date vs Due Date | BeatTheBush

1537 ratings | 71879 views
Open a Chase Checking and get $200 with a monthly Direct Deposit: http://bit.ly/2EDnbOn The closing date of your credit card is not the due date. The two dates are completely separate. First, there is a period at which you are billed. The last date is your statement closing date. You are given some time to pay this bill before late charges are enforced, typically around 28 days. This date that is 28 days later is the due date. Hence, if you want to try out the credit score boosting method, you need to monitor your statement balance a day or two before the CLOSING date and make a full paying on the current account balance AND make sure it posts before the closing date. Support more videos like this along with getting a bunch of perks here: http://www.patreon.com/BeatTheBush Get a free audiobook and 30-day trial. Even if you cancel, you still keep the book and you still support my channel for signing up. Support my channel by signing up to help me make more videos like this: http://www.audibletrial.com/BeatTheBush Credit Card for Starters Who Should NEVER Get a Credit Card: https://youtu.be/aNYZkMgTyb0 Only Use Credit or Only Use Debit: https://youtu.be/J0ZRgBIG39Q Credit Card Basics How Credit Card Calculates Interest: https://youtu.be/0Z2nWQdqa2A How Credit Card Grace Periods Work: https://youtu.be/8WuH3-PsjCA Difference Between Credit Card Inactivity and 0% Utilization: https://youtu.be/rtfJMZf_IrM Credit Card Statement Closing Date vs. Due Date: https://youtu.be/3-knvT7JbTk Does Canceling Credit Cards Affect Credit Score: https://youtu.be/jYGZukw5i-Q Can You Afford a No Limit Credit Card: https://youtu.be/sdAh7hzgJoU Credit Card Balance Transfer Hack: https://youtu.be/F2Foqg2ZTEw Credit Score Less Than 700 Maximize Credit Score while in College: https://youtu.be/pxGECoQoLLA Build Credit Fast with a $500 Credit Limit: https://youtu.be/attQKzngqoE How to Pay off Credit Card Debt: https://youtu.be/XY8YSPapnF8 How to Build Credit with Bad Credit or No Credit [w/ Self Lender]: https://youtu.be/RNXutBGAnlM How to Boost Your Credit Score Within 30 Days: https://youtu.be/LyBjciz4-zg Credit Score More Than 700 How to Increase Credit Score from 700: https://youtu.be/MCFKNBcyAWs 740+ is Not Just For Show: https://youtu.be/1fGcpxurzgU My Credit Score: 848, How to get it Part 1: https://youtu.be/dEZLZQXRBjQ My Credit Score: 848, How to get it Part 2: https://youtu.be/Y6-SB35C7Pc My Credit Score: 848 - Credit Card Hacks and How I got it: https://youtu.be/8Xz3hi3VWfM Advanced Credit Card Tricks How to get a Business Credit Card: https://youtu.be/S3srld5_l5Y Keep 16 Credit Cards Active: https://youtu.be/yAzkEK8Y6E8 Rejected for a New Credit Card with 826 Credit Score: https://youtu.be/66O505Oj5e4 Make Credit Cards Pay You Instead: https://youtu.be/wKMJdX1fQJA Credit Card Low Balance Cancellation $2 per mont [Still Works]: https://youtu.be/2DJjfvcMCcg Cash Back Are Credit Card Points Taxable?: https://youtu.be/Tw90h8I5JNk How to Churn Credit Cards: https://youtu.be/uw__fl38Dk4 Best Cash Back Credit Cards for 2017: https://youtu.be/e_uJweUsiDk 5% Cash Back on Everything: https://youtu.be/q9g_rySm_tI Always get 11% Off Amazon Gift Cards and Amazon Hacks: https://youtu.be/vbv6Rj2uUr4 Max Rewards: What's in My Wallet: https://youtu.be/cmJDFcbjFho How I Make 200 Dollars in 10 Minute [Hint: Credit Card Bonus]: https://youtu.be/pegq4G7ZhTI When Your Best Cash Back Card Gets Cancelled: https://youtu.be/pe7OuqxGi9M Amex Blue Cash Preferred vs. Everyday Effective Cash Back on Groceries: https://youtu.be/3ezD_QwS5e0 Double Dip Groceries Cash Back with Safeway Just for U: https://youtu.be/7kBl0W_L29U Milk the Barclays Cashforward Card for the MOST Cash Back: https://youtu.be/qf2gvrk6Evo Other Channels: BeatTheBush DIY: https://www.youtube.com/BeatTheBushDIY
Html code for embedding videos on your blog
Text Comments (349)
Cristopher Orellana (21 days ago)
Why does this shit have to be so fucking confusing
BeatTheBush (20 days ago)
It isn't really. They need to give you time to pay them right?
BettyHorrid (21 days ago)
Yeah dont get it
BeatTheBush (21 days ago)
hmmmm
Edward Biglang-awa (1 month ago)
This guy is a sell out
Vince Ferla (2 months ago)
So, how long after the due date do I have to spend a significant amount of money to skip the next billing cycle so I have more time to pay??
Stephen (7 days ago)
I got my credit card debt thats been giving me sleepless night payed off by Brian, he is God sent, anyone with debt problems should text him on 2675784862
K gill (3 months ago)
Hi Great thank you for teaching. 👍
Edward Biglang-awa (3 months ago)
What if my due date is before the closing date
BeatTheBush (3 months ago)
It isn't. You're just looking at the closing date for the next statement cycle.
nativered1 Harris (3 months ago)
WOA!!! this is a complete game changer!!!! No wonder my credit had not been increasing! I would pay it down on my due date thinking thats the day they report!
BeatTheBush (3 months ago)
=D Well, if you pay it right before they report, this is a temporary boost but you take what you can get.
Bijesh Parmar (4 months ago)
लवडा
DramaTv 101 (4 months ago)
So if I pay everything off before the closing date, when should I use the card again? For example the billing cycle is Jan 1 to 31st. I pay everything off the 30th. When should I use my card again? Or is it better to let 1% be reported to the Bureau and pay it off after it’s reported?
BeatTheBush (4 months ago)
You can use your card right after the statement closes. The usage will appear on your next statement cycle.
Electro (4 months ago)
I want to know the relationship between cycle due vs days past due. I know credit card companies charge off accounts after 180 days (some charge off end of the month so some may charge off at 210 days past due and some 180 days past due). Now, the confusion is when does cycle 1 start? (31-59 DPD) or (1-30 DPD)?
BeatTheBush (4 months ago)
I wouldn't worry about when each card does it as they all do it differently. Due date is generally about 25 days after the end of the previous statement cycle.
Samantha Isaacs (5 months ago)
For those of you that are still confused, your closing date is around 5-7 days after your due date. I tried this method and my credit card score went up by 34 points. So dont make a purchase until your closing date has passed.
gAbbYrOckzz (5 months ago)
Wait, so you pay off your card by the due date, then CONTINUE spending until day before closing date, so day before closing date you pay again???
Superior Hulk (6 months ago)
I do not understand why he covered up half of his information. Hmm, only dishonest people have something to hide. Haha.
BeatTheBush (6 months ago)
Doesn't work on the internet without tone of voice.
Superior Hulk (6 months ago)
BeatTheBush sarcasm...
BeatTheBush (6 months ago)
Privacy.
TenTaur Tv (6 months ago)
Ok that makes sense. Thanks your channel is awesome and I’m learning so much.
TenTaur Tv (6 months ago)
BeatTheBush Hey bush quick question. Should I wait a couple of days after I pay it off to use the card again or does it just automatically reset?
BeatTheBush (6 months ago)
=D
The BigSky Family Vlogs (7 months ago)
Try your best at statement time to show less than 9% utilization, then at due date pay it completely, then a new month starts Example- $300 limit (You spend what you want preferably very little) Before statement day pay it off to no higher than 9% & no lower and 1% (That way it shows creditors you have access to $300, but only spent a small percentage of it, you only utilized small percentage because you are financially okay to do that & don't rely on a credit card) Then when it's due date time, pay off the remaining small percentage & the next month starts over. If you pay it off to zero before they send the statement, they will think your card is not active or you just don't use it.. instead pray it all off except 1-9% then pay that off by due date & you'll start all over again. You want some, very low percentage, not just 0% or you'd not even showing your using your card at all if it's always zero. Kind of confusing, but it makes sense. Utilization is 30% of your credit score, so only *(utilize)* no more than 9% Will give you Excellent for utilization anything over 9% is considered Good utilization 1-9% Excellent 10-29% Good 30-59% Fair 60% + Bad So spend what you want, but pay it down before statement time in the Excellent percentage Then pay it off during due date Then carry on to the next month & continue to do this, over time your credit will build high. This is also great for people with little or no credit. Great info!
Pilot Fire (10 days ago)
Montana Fishing hello, the considering the due date is around 3 weeks after the statement closing date, let’s say my statement date is the 8th and my due date is the 26th and on the date in which my statement is generated (8th) my utilisation rate is at 9% is it still okay to continue spending money on the let’s say the 10th before paying off my my statement balance on the due date (26th) ? Really need help on this one
Kayla W (26 days ago)
I was still a bit confused after the video but this makes a lot more sense to me. Thanks for sharing!
KK (7 months ago)
Great info
Donavon Pittman (8 months ago)
hey I have a question beatTheBush if I have two credit cards 1st card limit:200$ 2nd card limit:300 how much should I use on each card a month to have good utilization rate? please let me know thanks.
BeatTheBush (8 months ago)
Try this video: https://youtu.be/attQKzngqoE
muthu vanhelsing (8 months ago)
Can i use my card before I pay my last statement though I have few days left for my due date will they charge extraa for me
BeatTheBush (8 months ago)
If you use your card after the statement period date, the charges will appear on your next statement. As long as you have your grace period (pay in full every statement before due date), you will not get charged finance charges.
Cesar A. (8 months ago)
Good information Thank you brother
BeatTheBush (8 months ago)
You're welcome!
Cool Videos (9 months ago)
sir mujhe yeh batao Maine credit card ke 95000rs bharne hai aur mere pass na hi paise hai aur na naukari mujhe 4 month hoge Maine bill nhi bhara toh batao sir bank mere pe kya kaarwai kar Skta hai
BeatTheBush (9 months ago)
Probably play the minimum at least. If you have no money for that, you might be in for some late fees.
got a pending payment and due date is next day. how to pay if pending?
Vivian Choi (9 months ago)
I have been watching your videos and learn so much from you. I have been building my credit score from nothing to now over 700 score. Not even one year yet. Just wanna say thank you for all the info you share with us on your channel!!
BeatTheBush (9 months ago)
You're welcome!
Iprsmrk (9 months ago)
I have a question - I don't have the funds to pay off the entire amount owed.  Will it make a difference if I pay over the amount due (instead of the minimum) before the closing date?  Thanks for your help.
BeatTheBush (9 months ago)
Yes... you must pay the entire balance to avoid interest charges. Not paying the entire balance before the closing date will also increase you utilization rate which will reduce your credit score temporarily.
Chris Z (10 months ago)
So when am I able to reuse my card again after due date or after statement closing date? And how many days after?
Chauncey Garrett (10 months ago)
So let me see if I understand. So I need to view the statement date as my due date to keep it a a 0 utilization no matter how much I spend right?
mariame zotamou (10 months ago)
Hi, I have more questions but after reading your description it kinda helped a little. I will try and ask my carrier again for more clarity but for my current satisfaction what you are saying is that it’s better to pay our bills before the closing date right? This is my first credit card and I really don’t like credits but I was told many times that credit cards aren’t just borrowing money, it’s showing companies and banks that you can be trustworthy. So I understand that much but I’m still a little bit lost I don’t want to find myself in great debts not that I spend too much if you can help clarify that it’ll be really great 😊 thank you
BeatTheBush (10 months ago)
Pay it off in full every month and you'll be fine. You may want to look at some of my other credit videos as I have many that covers this topic.
bLAh858 (10 months ago)
I kinda understood it but when you showed your Citi bank statement it threw me off as the closing date is 9/15/16 and the due date is 10/13/16, so in that scenario is the opening statement date for Oct the same as the due date? When do you pay?
bLAh858 (10 months ago)
BeatTheBush oh I see lol, thanks
BeatTheBush (10 months ago)
Think of this in terms or segments of one statement each. That statement will be 9/16/16 to 10/15/16. That statement will be due 11/13/16. I did this video again since it was not completely clear here: https://youtu.be/PaeIUj2Mhww
Trigg Wolf (10 months ago)
Question!? Right now on one card I'm using no more than 8% utilization every month.... If I pay let's say a week before the due date every month with only 8% utilization , would this help my credit score?
Prim Rose (11 months ago)
does this work with personal loans too?
Prim Rose (11 months ago)
BeatTheBush ok cool
BeatTheBush (11 months ago)
Loans do not work the same as a credit line. You have no such thing as a utilization rate since they are not extending you a credit you pay into and can re-borrow. Just pay it normally every month.
Prim Rose (11 months ago)
BeatTheBush oh ok, after watching your videos I finally opened a self lender account in January for $25 a month (they now offer the $25 option), made my first payment in February and ever since then my credit score went up 40 points!!!!!! in 2 months! I'm shooked! Thank you so much for helping me!!!! also the reason why I asked about the personal loan is because I have a navy federal credit pledge loan to build my credit (it is similar to the self lender), basically $250 that I have to pay in 6 months, so about $49 I pay each month, I wanted to know if I pay a little before the statement close date if it builds credit faster so I'm gonna try it and see if it works.
BeatTheBush (11 months ago)
Personals may be different.
CINDY ANGE (11 months ago)
None of this is ever taught in school. When you left your corp tech job, it was their loss, our gain. I have learned alot of your videos. Thankyou for the information.
BeatTheBush (11 months ago)
My purpose indeed. I feel great giving away other people's money away, lol.
Sanak Pal (11 months ago)
what if i pay it instantly?
BeatTheBush (11 months ago)
Pay it instantly, i.e. pay it every time you use the card. As in everyday or two you pay it. You pay it on the statement date.
Sanak Pal (11 months ago)
I have to pay on the 29th day?? How will this help???
Sanak Pal (11 months ago)
BeatTheBush how more work?🤔
BeatTheBush (11 months ago)
It's more work with no added benefits.
Danielle Page (11 months ago)
This really helped me so much !!! I now have a better understand how to fix my credit !!
BeatTheBush (11 months ago)
Excellent! =D
Eddie Arcega (11 months ago)
So basically pay balance 2 or so days before statement closing day. Alright
Russell John Javier (1 year ago)
what if you pay your bill on due day, then on the same day after you pay your bill you buy something.... do you need to pay again on same day?
BeatTheBush (1 year ago)
On the due date, the statement for that due date likely ended 15-25 days earlier. So what you spent ON the due date will go in the next statement period.
Milton Garcia (1 year ago)
Thanks Beat the Bush!! I've been kicking myself trying to figure it. Now you made it simple ! 👌 Thanks for all the valuable knowledge!
BeatTheBush (1 year ago)
You're welcome! =D
Unkle Rukus (1 year ago)
So if I owe 50$ can I pay 25$ on the closing date and the other 25$ on the due date? Or pay the full 50$ on the closing date.
Omar Cavagneri (1 year ago)
Good many people get confused on closing day.
BeatTheBush (1 year ago)
Yup... subtle difference but then once you know it you know it.
W4LKNDE4D (1 year ago)
Nice video but ive read some conflicting information about reporting with a zero balance. Ive read that if u constantly report with a zero balance that the bureaus see it as ur not using ur credit at all and this isnt a good thing. Any info on this would be great.
BeatTheBush (1 year ago)
Try to report $2.01 instead when the statement period ends. It depends on the credit bureau. So to be safe leave a little bit. $2.01 being the minimum. Then pay it off completely by the due date.
michael carey (1 year ago)
By doing this you will be making a payment well before due date, before you even get your statement for next cycle.
BeatTheBush (1 year ago)
Sure. If you make a payment one day before your statement date, I advice leave $2.01 in there then this is very good for your credit. Keep card active and have low utilization.
BJJGarage (1 year ago)
payoff before closing date, got it.
BeatTheBush (1 year ago)
Yup. Except $2.01 of it. Then pay it again before due date.
Sergio Garcia Studios (1 year ago)
Thank you for this video! I think I'm beginning to grasp the concept but still a little confused. My CC due date is on the 28th and the billing cycle is 4th - 3rd (example: Due date Nov 28th, billing Oct 4th - Nov 3rd). If i'm undertstanding this correctly, I have from the 3rd - 28th to pay off? In your examples it was only 2-3 days, which is why im confused (assuming im doing this right) that mine would be 25 days.
BeatTheBush (1 year ago)
The way you explained it is correct. You have to put the month in front of the date to make it clear. You grace period is 25 days.
Dragon Ball Clips (1 year ago)
How do you pay before the closing date, not online, do you need the statement?
BeatTheBush (1 year ago)
You need to look at it online. Or you can call in to ask what the balance is and pay that before it closes. Via paying via phone probably.
zlshaan (1 year ago)
made no sense
BeatTheBush (1 year ago)
I heard the complaints and made a new video that is more clear here: https://youtu.be/PaeIUj2Mhww
srk king (1 year ago)
I think many people confused , because the way the date is written...In India , its dd-mm-yy ...In your case , its the other way round , month is written first...
BeatTheBush (1 year ago)
Ahhh... yeah, that's how it is in the US.
redheadkingpin 27 (1 year ago)
Ok that was a bad move for me to do I ant get nothing this month they report on the 27th and I guess every bank is different ya learn from mistake like 2 months I ant get nothing really frustrated about this sept I got 1 point for probably paying to early so nov my end date is the 27 Ima just pay on 25th just to be safe and let me see what happens then
BeatTheBush (1 year ago)
Yup! That will help if you manage to have it clear the payment before the statement end date. It does indeed vary by the bank.
redheadkingpin 27 (1 year ago)
Yeah it shows my credit score on credit karma
BeatTheBush (1 year ago)
Ok
redheadkingpin 27 (1 year ago)
Yeah I’m not sure but thx for responding
BeatTheBush (1 year ago)
Ok
redheadkingpin 27 (1 year ago)
See that’s the thing though it doesn’t show that like on kredit karma just keeps saying my credit card utilization is at 0 frustrating
BeatTheBush (1 year ago)
Does it show your credit score?
redheadkingpin 27 (1 year ago)
Really ohh man so that’ means I won’t get no points for oct omg man sucks
BeatTheBush (1 year ago)
It just means your utilization may not be low just this month.
redheadkingpin 27 (1 year ago)
No i paid it on the 27th but it looked like it got posted on today
BeatTheBush (1 year ago)
And statement date I assume is 27th? Then that means you needed to pay one day earlier to catch the statement date.
redheadkingpin 27 (1 year ago)
Ok man so I’m a lil scared now I did what ya told me to do but it seems like they just took my payment today on 28th today did I just screw myself from getting points cause I don’t know if they reported it yesterday omg I hope not help if ya can
BeatTheBush (1 year ago)
Not sure if 28th is your statement date?
Calisa Hardy (1 year ago)
I binge watched like 8 of your videos last night, this one and the one on credit utilization were *so* clear and helpful!! I came for the info, I stay to see the peas! 😉
BeatTheBush (1 year ago)
Thanks for watching! First step is to know how it all works. Step 2, get that score high so you can pay attention to more important things in your life. =D
redheadkingpin 27 (1 year ago)
Shit ok so after I pay the 201 on my due date will it be ok to use the card again
BeatTheBush (1 year ago)
You can actually use it right after the statement date. The amount you spend will go on your next statement.
redheadkingpin 27 (1 year ago)
Ima do that with my cap one card too thanks
BeatTheBush (1 year ago)
No prob. =D
redheadkingpin 27 (1 year ago)
And one last question and my cap one card payment is due on the 6th of each month and they said they report on the 11th should I do the same with this card too
BeatTheBush (1 year ago)
Yeah. Pay everything except $2.01 on the 11th. And $2.01 again on the due date.
redheadkingpin 27 (1 year ago)
Ohh ok ima try that on that card and thank You so much for replying popular channel ya have keep up the work
BeatTheBush (1 year ago)
Thanks. Glad you got it. =D
redheadkingpin 27 (1 year ago)
Ok so should I pay my balance on the statement date the whole thing
BeatTheBush (1 year ago)
Pay everything except for $2.01 on the statement date. And then pay $2.01 again on the due date.
redheadkingpin 27 (1 year ago)
My last statement Payment is due on the 22 right but they report on the 27th and I only got 1 point last month I was sooo sooo pissed I ant understand that at all
BeatTheBush (1 year ago)
Statement is due 10/22. For that statement, it reports on 9/27. So for the next statement due on 11/22, you want to pay everything except $2.01 on 10/27.
redheadkingpin 27 (1 year ago)
I’m super confused
redheadkingpin 27 (1 year ago)
BeatTheBush ok so credit karma updated my account and it still showing 0 credit utilizatiion even though I owe 44 bucks on a card but Ima still do what ya told me to do will it be ok if I do that on the 26 cause I’m a lil scared that if I pay it down on the actual date they report on the 27th might be a lil risky
BeatTheBush (1 year ago)
Hope my other comment helped.
Marcus Davis (1 year ago)
closing date is when it reports to credit bureaus
BeatTheBush (1 year ago)
Yes. That is true.
Musiq4life 992 (1 year ago)
So I should pay my billing 2 to 3 days before its due date if I want a 0 utilization? 🤔 .... When is the best time for me to pay my bill? I normally pay it 1 to 2 weeks after I receive my bill. Thank You. -Ryan
BeatTheBush (1 year ago)
You never pay minimum, that's the wrong way to use a credit card.
Musiq4life 992 (1 year ago)
BeatTheBush I have one more question, (I'm sorry) how and when do I know if I should pay the minimum payments?
Musiq4life 992 (1 year ago)
BeatTheBush so, pay the EXACT amount (down the cents) a day before the statement date?
BeatTheBush (1 year ago)
Pay it 1 day before the statement date down to $2.01.
Phuong Hua (1 year ago)
If was not approved for a cc. How long should I wait until I apply again? 6 months 1 yr? Can i apply for the same card or should I apply for a diff card?
Rell Rell (1 year ago)
Good morning, ? Am I supposed to pay the amount due on or a day before the due date Then wait a day or two to pay off my Chase or Amex card before the closing date?? Pls advise Thanks
Rell Rell (1 year ago)
Ok Thank you
BeatTheBush (1 year ago)
The other way around. If you owe $102.01, you pay $100 on your statement date. Then on the due date you pay the remainder $2.01. This needs to be done every month if you want to use the 'boost' trick to zero out your utilization ratio.
Jaynie Prescott (1 year ago)
Thanks for the video - very helpful! I do have a q ~ My current Citibank Visa statement shows closing date 9/18/17 with payment due 9/14/17. Yes, it really shows that on the statement! I've only had this c/c since June and I've been stumped ever since every statement shows this pattern - due date before closing date or is this not unusual? So based on your strategy which date is the best date to pay? TYIA for everything you do, my FICO has gone up since applying your methods!
BeatTheBush (1 year ago)
Ehhh. This is indeed very strange. Maybe it's referring to the next closing date. The due date of 9/14 was likely for the statement period 7/19/17 to 8/18/17. If you are trying to boost your credit score, pay it on 8/18 all except $2.01. Then on the due date 9/14 pay the $2.01 off with auto pay. You're welcome!
Evelyn C (1 year ago)
Wow, that second example really clarified the billing info for me. Thanks!! #AhaMoment
BeatTheBush (1 year ago)
I'm glad it helped you! =D
uv.vibes (1 year ago)
Right still lost cause you kept saying OCTOBER when 9 is September. omg wow.
uv.vibes (1 year ago)
ok. no problem! So i dont have a closing date period of days. Its statement available the 18th and then the due date is like 21 days later. When Is the best time to pay my bill? And when can i carry a higher balance, and when should I keep it within the 1-9%?
BeatTheBush (1 year ago)
Mistake on my part there. sorry.
burgyburgiburge (1 year ago)
Can I call the CC company and ask them when the closing date is?
BeatTheBush (1 year ago)
Yes you can.
Khoi Pham (1 year ago)
Hey beat the bush, is the correct process? Ex 600$ balance Due date august 18th min payment( I'm going to pay 597.99 to leave 2.01 balance) Then pay the 2.01 off before August 24th statement closing date
BeatTheBush (1 year ago)
=D
Khoi Pham (1 year ago)
thanks for clearing it up for me!
BeatTheBush (1 year ago)
More like this: $600 balance. 7/24 statement close and that statement is due 8/18. You pay $597.99 on 7/23. Then 8/18 auto pays $2.01.
Impeccable Shoegame (1 year ago)
...But if it's reporting at $0 doesn't it look like one isn't using the card, shouldn't one pay down the statement bal to under 10% and then just pay the rest on the due date???
TanicWhisper06 (2 months ago)
I saw another video explaining why someone with multiple credit cards and long history or owning credit, should use the 0% rule. But someone who is new, with less than 3 cards and no more than say 5 years of History. Should try and pay at the 1-10% range. Avoid the zero or it will report back as nothing like you suggested.
nativered1 Harris (3 months ago)
Thats a very good question and answer
BeatTheBush (1 year ago)
The trick number is down to $2.01. Pay it down to there and most credit score systems will recognize that as the card being used.
Edward Miller (1 year ago)
This video was more confusing (for me) than it could have been because you stated dates incorrectly. For example, at the 1:02 mark, you read the period 08/10/16-09/09/16 as "September" through "October." August is the 8th month of the year and September is the 9th. Later in the video, at the 2:27 mark, you read 08/16/16-09/15/16 as "October 16th to September 15th." Not only do those numbers not correspond with the months that you said, but you actually said the names of two consecutive months in reverse order, creating even more confusion (for me). I don't mean for this to sound like splitting hairs, as I'm sure that many viewers were able to sort out what you meant as they were watching. As someone trying to wrap his head around these concepts, however, I felt that those speaking errors only added to my misunderstanding, especially initially. I realize that you know the numbers that correspond with the months of the year and that this was likely an error due to speaking on the fly while you filmed. Still, it might be worth it to go back and edit the video or add a subtitle to clarify. It took some reading in the comments to find an explanation of credit card closing dates and credit card due dates that made sense to me. I will try to repeat that explanation, so someone can correct me if I'm wrong. The statement opening and closing date can be thought of as a billing cycle. The due date comes after the billing cycle. The due date is the day by which you need to pay off what you used the credit card to buy during the most recent billing cycle. So a billing cycle that runs from January 1st through February 1st will have a due date at some point after February 1st (likely in March, based on the examples in this video). So the credit card statement is telling you that you don't have to pay off your purchases from Jan 1st - Feb 1st until March, for example. (Whether or not that is when you should pay them off seems to be a point of debate, though.) In any case, thank you for making these videos. I am trying to learn more about credit cards and this was the first video of yours that I watched.
BeatTheBush (1 year ago)
Please go by the numbers on the statements. Sometimes its difficult to say what I mean on a video. What you need to know is statement date is not due date. Due date comes 20 days after the statement date.
bob gonz (1 year ago)
this makes sense to me... but my credit card statements post that my closing date is after my due date and that doesn't make sense to me?
BeatTheBush (1 year ago)
Those are for different statement periods. The due date you saw is for the previous statement closing date.
Fiasco117 (1 year ago)
so let's say my payment due date is 8/03/17 and my closing date is 8/06/17. Having a 0.00 balance before 8/06/17 (my closing date) will boost my score?
BeatTheBush (1 year ago)
Closing date is 8/6/17, due date for that statement closing is 9/3/17. You should pay it down to $2.01 before 8/6/17. And on or before your due date pay the $2.01.
Ivan Rodriguez (1 year ago)
How do I see this online? I went paperless.
BeatTheBush (1 year ago)
Ok =D
Ivan Rodriguez (1 year ago)
Nvm. I see it.
Veruthas (1 year ago)
The way I understand it, the Statement Balance is the locked-in balance that's owed every month. If you pay off at least the Statement Balance, you will never owe interest (even if your current balance is higher). So if my Statement Balance is $1000, then spent $500 after the Statement Closing date, (giving me a Current Balance of $1500), and I pay the $1000 Statement Balance on the Due Date, I'll be in the clear. My question is: Should I pay off the entire Current Balance ($1500), or the Statement Balance + enough to put you at a low utilization (ca. $1400)? I was always told to leave something on the card to generate a Statement Balance for the following month, or your credit report will show no usage. I'd love to be able to pay off the current balance every month, would make things a lot easier!
Veruthas (1 year ago)
Thanks for the reply, this was as always something I was unclear about. Love the channel!
BeatTheBush (1 year ago)
If you pay it after the statement balance gets issued, it's too late already. So you want to pay right before the statement date except for $2.01. That is the 'something' you leave so your credit appears to be active for all credit scoring systems.
Julia L (1 year ago)
I'm surprise that a minimalist like you would actually have paper statements! HAha, I thought you would be a paperless type of guy.
BeatTheBush (1 year ago)
A hahhaa. I'm slowly changing over to paperless leisurely. It's getting there.
Sean Willman (1 year ago)
Thank you for your time! I would add that it may take time for a payment to go through to pay off your card. I called my card company and it specified based on my type of payment how long it would take ie. using another card, using a checking account or mailing (longest of course). I make my payments 4 days before my billing period is over just to be safe. Thanks again for your help!
BeatTheBush (1 year ago)
Agreed, you have to take into account payment times so that the actual payment is before the statement date. Good thing to do a trial run and test things out.
Florida Fish Guy (1 year ago)
is paying off your card before the closing date the same as not using the card at all? I just got my first secured card of $300 so 10% would be $30. I'm wondering if I could just not use the card rather than trying to stay below the $30 limit
Julia L (1 year ago)
and Just so that I'm sure, if my card limit is 10,000, I would have to use it to 9,999 to try to boost the upper limit? I remember I had this other card that boosted my limit to 25,000 for no reason. I actually had them bring it back down because I didn't want to lose the card and someone buy a used car with it. So how do I bring up credit limit when I want to? Do I have to call in and request it.. and if I request it will it bring down my credit score in any way
BeatTheBush (1 year ago)
Yes yes! Correct! =D =D =D
Florida Fish Guy (1 year ago)
BeatTheBush so just to make sure I understand correctly, the utilization percentage is calculated based on the balance that is on your card at the closing date?
BeatTheBush (1 year ago)
The answer is sometimes. You need to use the card to make it appear active. Best to use it up to 99% of the limit and the pay it down to $2.01 right before the statement date. Then pay it again right before the due date. It then shows up as active AND you show you need more credit limit.
Michael Del Toro (1 year ago)
My credit card utilization is always at 0%. To help people explain it easier is he is telling you to pay off your billing cycle by the statement date meaning. My billing cycle on my Cap One Venture card starts 4/9/17-5/10/17. I won't be billed for what I spent in that cycle until 6/6(Due Date). What he is explaining is simple everything you spend in the spending cycle from April 9th to May 10th pay off before that billing cycle closes not by the due date. Basically the due date is 28 days behind your billing cycle. So everything you did from April to May you pay for in June everything you did from May 9th to June 10th you pay for in July. So instead of waiting for your due day for that billing cycle just pay your bill in the same billing cycle. I think the confusion people are getting is that if they pay off their cycle will they still have a balance by their due date the answer is no because a new billing cycle will start. Example again if your billing cycle is 4/9/17-5/10/17 and you pay it off by 5/9/17 and you start using your card on 5/11/17 that wouldn't go on your due day of 6/6 it would be due on 7/6. I hope this helps
Hoosier News Now (1 month ago)
So couldn't you just not spend on it and it be the same thing
TanicWhisper06 (2 months ago)
Awesome explanation! I think what would have made this even more easy to understand for most, would to change out words. Such as “due date” - the day your bill comes in and you MUST pay “Billing Cycle” - The time the credit card lender will Add Up all your purchases to find your utilization and to see what you owe them, if you pay them before Billing Cycle ends (AND NOT THE DUE DATE) you’ll create low utilization which is good for your credit score.
J (3 months ago)
Ben Dover yes because your balance is zero and thus it’s not “credit”
Why eb das (5 months ago)
Michael Del Toro u
Ben Dover (5 months ago)
if i maximize on my credit limit but if i pay it off before closing date. will my utilization rate be 0%??
Andrew Conner (1 year ago)
I'm a bit confused about the closing date still. on credit karma for my chase card it says my report date is on the 16th but on the statement itself it says the closing date is on the 4th. All of my other cards seem to match up to credit karma except that one.
Andrew Conner (1 year ago)
So the trick is just pay off your entire balance a couple days before the close date?
puleDressDesigns (1 year ago)
Thank you for this!
BeatTheBush (1 year ago)
=D
Sam Joseph (1 year ago)
so in this case paying it on the 13 or 14 is better than paying on the 10th-11th-12th...and does leaving from $5-10 actually boost your score?
Sam Joseph (1 year ago)
BeatTheBush with BOA, if my Payment due date is 07/25/17 and closing date is 07/28/17. when is it best to pay following this module?
BeatTheBush (1 year ago)
It depends on when your statement end date is. You generally want to pay 1 or 2 days before the statement end date. My new recommendation is pay it down to $2.01 to be most compatible with all credit cards and credit reports. Then you allow autopay to pay the $2.01 right before the due date. Hence, each month, you manually pay once and autopay pays a second time.
7MOTION98 (1 year ago)
Hey I can see that you are using low cancellation in the Bank of America card :) cool. LoL
Julia L (1 year ago)
What's low balance cancellation?
BeatTheBush (1 year ago)
I think BofA cards do not do low balance cancellation actually. Even $0.01 they will charge you.
Samuel Holden (1 year ago)
I find these videos really interesting, I'm thinking of starting a similar channel for the UK as things work very differently here. What sort of credit limits are you running on all of these cards? Utilization vs maximum possible global limit seems to work very differently in the USA.
BeatTheBush (1 year ago)
Definitely there will be demand for a similar topic in the UK. I know very little about the system there.
Travis McVey (1 year ago)
So basically what you're saying is you want to pay the balance in full so you have a $0 balance on the cards report date (the date the lender reports to the credit bureau)?
BeatTheBush (1 year ago)
Correct. Except I have now revised that to leaving $2.01 balance for most comparability with all credit card types and credit reports.
Bite Hunger Back (1 year ago)
Hi, I was reading the comments and you had mentioned if you have a low credit limit like $1,000 or $2,000, leave a $2 balance. Does that pertain to all your low limit credit cards and what if you have other cards with a high limit like $10k? Thanks.
BeatTheBush (1 year ago)
Thanks for your sub! Ahhh yes, so another great reason to use the low balance cancellation to keep things active. There are two strategies here. Get it to cancel and not get it to cancel for different reasons.
Bite Hunger Back (1 year ago)
BeatTheBush Yes, I've noticed that some of my in store credit cards like Target have been canceled because of no activity. You would think they would want to keep you as a consumer but I guess they may rely heavily on late fees and interest. I just don't think it's fair because I took a dent out of my credit to apply for the credit card. Thanks for the reply and I'm a new subbie!👍🏼
BeatTheBush (1 year ago)
That is the boosting credit trick and it works well for people who have low total credit limits where their day to day spending makes their utilization ratio too high. So paying it off before the statement date lowers this. And leaving $2.01 (I had to add $0.01 to be compatible with discover) will allow the card to be active. If you have other cards in the $10k range, it's still not that high so you could still benefit a bit from paying before the statement date.
LHB305 4L (1 year ago)
What about paperless
Preston White (1 year ago)
UNK There's a reason he didn't respond to your comment 😂😂😂😂 idiot
Unkle Quester (1 year ago)
The REAL reason they went paperless, has NOTHING to do with whatever they sold to the public (what was it, saving the trees?), and has EVERYTHING to do with there's no longer a way to AV4 the coupon payment they call Statements....when you OWE on your bank account, isn't there a (-)negative BEFORE the amount you allegedly owe? Sooooo, WHY aren't there (-)'s negative signs on credit card statements, and other utility 'bills?' It's bc they're NOT BILLS, these companies have already been paid, and they get you to pay them AGAIN.....They (govt) FORCED us ALL to get Direct Deposit, why is that?
Mr.Miscellaneous (1 year ago)
View the statement online
BeatTheBush (1 year ago)
Paperless is great to prevent fraud. Even better when they used to pay you $10 to go paperless.
ber ca (1 year ago)
OK. Got it. Thank you
BeatTheBush (1 year ago)
=D
ber ca (1 year ago)
Thank you for responding. I generally pay off the whole bill at the due date. Next time I will make a payment prior to the statement date and another payment by the due date. On occasion I'll make a large purchase and carry it over a 3 month period then give the card a rest for awhile or by not exceeding $200 worth of debt in the following months. I will restructure this as well.
BeatTheBush (1 year ago)
Do this only if you have pretty low credit limits like $1000-2000 ish where it matters a lot. Make the payment prior to the statement date (minus $2). Set up auto of the full statement balance so it will make the second payment automatically for you. The reason for leaving $2 is to make sure it shows your credit is used in all types of credit reports. More info here: https://youtu.be/GtGS7psvKlY
ber ca (1 year ago)
I've watched quite a few of your videos. You have taught me how to read credit card statements and terms. The info was right in front of me the whole time but I couldn't see for looking. Most annoying term to date is interest being charged upon purchase, even though the product hasn't been shipped yet. WOW
BeatTheBush (1 year ago)
Oh yes, if you have a running balance, you no longer get the grace period. Hence you get interest charged immediately.
ber ca (1 year ago)
Great Channel. Very informative. Do you recommend using a credit card to pay off monthly living expenses​? (telephone, electric, gas, etc). Please advise...
BeatTheBush (1 year ago)
Yes I do if you get points on all of it. A general good one is Citi Double where you get 2%. However, you're not using credit to pay since you really should pay your card off in FULL after you use it to pay your bills.
groove269 (1 year ago)
Thank you Glenn for clarifying ! Sorry about TWD , you took it like a champ!
BeatTheBush (1 year ago)
What's twd? Two wheel drive? Text while driving? The Walking Dead?
LitaL. (1 year ago)
I was a little confused about the timing, but you cleared it up perfectly. Thank you!!!
BeatTheBush (1 year ago)
You're welcome! =D
Henry DV (1 year ago)
Thanks bro
BeatTheBush (1 year ago)
I'll be making a video on that the next few days. You want to use the card and make sure you get a bill. But to zero out utilization or get very close to it, you pay everything but $2. More elaboration on this in video form next day or two.
Henry DV (1 year ago)
BeatTheBush So 0% utilization is bad compared to paying off everything but 2$ before the statement date and letting auto pay do the rest? Even if you've used 90% then pay it off in full? I'm trying to start off as strong as possible building credit I'm 19 and it's a Wells Fargo secured card thanks for replying
BeatTheBush (1 year ago)
The due date is generally 20-25 days after the closing date. What are you trying to do? Get close to 0% utilization? If so, I would pay everything but $2 before the statement date. Then you will get billed for $2. Then on the due date you use the auto-pay feature to pay the rest of it off automatically. This will keep your card as active to be compatible with most credit bureaus.
Henry DV (1 year ago)
Had to watch a couple videos a couple times but I'm positive I understand now I'm starting the process out on a secured card with a 300$ limit so it's 5/29 today I will spend a small amount pay it by the due date (6/16) then continue to charge the card and pay it off by the closing date (6/22) then on the next cycle my due date will be about 28 days after the billing cycle closes correct?
Mikozee (1 year ago)
So, tell me if I'm right here. If the Billing Period is from Jan. 1 to Jan 31., any amount of money I spend during the month of January will be "finalized" on Jan 31. So if I spend $1,000 over the course of January, and I don't pay off the balance, then come January 31 the billing cycle will close for that month, and I'll get a bill in the mail later saying I owe the bank $1,000 by March 1. But if on January 29 I pay the bank $900 in advance, then when the cycle closes, I'll only have a balance of $100. In both cases, the amount I have left in my balance is what's reflected in my utilization %. My question is, in the case of the Better Balance card from Bank of America, do you still get the reward for paying off your balance before it's closed? Or am I supposed to leave some balance?
Mikozee (1 year ago)
I think I can answer that in beatthebush's place. Basically, you want a balance to be closed for it to count towards your sign-up bonus. So if you spend $325, make sure it closes and it's posted as your balance due for the month. This way, you KNOW for a fact that the bank has acknowledged you spent that much money. Once the balance is posted, you can pay it off in full. I think where the confusion is is you're thinking about spending $325, then paying it off in full before it closes. If you do that, the balance will show $0 due and $0 spent. Now, I don't know if the bank still counts the money you spent before the closing period, but it's better to be safe than not, right? But that's a good question about cash back. Are cash backs calculated per purchase, or are they only calculated based on your balance after it closes?
George Louis (1 year ago)
Wait a minute. Are you saying that if you sign up for a credit card that has a sign up bonus of 200 dollars if you spend 1,000 dollars with in the first 3 months of opening the account and a 1.5% cash back for all purchases and charge the card 325$ each month but pay off the full balance before the billing cycle ends to get 0% utilization you will not get any of the cash back or points?
BeatTheBush (1 year ago)
No, if your statement ends 1/31, your bill will likely be due around 2/21. If you pay $900 in advance, you would have reduced your utilization ratio, correct. For better balance, I'm not sure as I always just leave a balance in it to make sure it is used. If you have 0 in it for one month (nothing due) then you will not get the reward. Leave some balance.
Md Kawsar Hussen (1 year ago)
Thanks a lot, your explanation so much helpful and clear.
BeatTheBush (1 year ago)
=D
jlai624 (1 year ago)
Great content! New sub from Vancouver.
BeatTheBush (1 year ago)
Hello! =D Thanks for subbing! =D
Forever Dope Brand (1 year ago)
Question, my reporting date is the 22nd, due date is the 19th of the following month. If I pay before reporting date, will it report as no activity or will it report as current?
BeatTheBush (1 year ago)
I now recommend to pay your full balance minus $2 right before the reporting date. So then you will have activity and you will still have to pay $2 on the due date. Make sure to have auto pay on and you wont have to manually pay twice. This is just to make sure activity is compatible with all credit bureaus.
Dewayne Dewayne (1 year ago)
due date the 19th closing statement 23 -26 help?
BeatTheBush (1 year ago)
Your close dates doesn't make sense. Say statment is 3/26-4/25, due on 5/19. You pay it on 4/23 or 4/24 before the statement closes.
Dewayne Dewayne (1 year ago)
t
BeatTheBush (1 year ago)
?

Would you like to comment?

Join YouTube for a free account, or sign in if you are already a member.