Should I pay balance before or after statement closing?

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alb3rt018
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Should I pay balance before or after statement closing?

Postby alb3rt018 » Wed Mar 14, 2012 10:04 pm

Is better to pay my credit card balance before the statement end or wait until the due date?

(This is in reference to the American Express Gold)
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4Runner
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Postby 4Runner » Thu Mar 15, 2012 10:21 pm

For me, it makes no difference, you will have to pay it.

alb3rt018
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Postby alb3rt018 » Fri Mar 16, 2012 12:58 am

oh ok thx.
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2percentPlus
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Postby 2percentPlus » Fri Mar 16, 2012 12:49 pm

It depends if you want the utilization reported or not.

jeffysdad
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Postby jeffysdad » Fri Mar 16, 2012 1:14 pm

Closing date/cycle date/statement date is when the account cycles and when the minimum payment (or whatever you choose to pay) becomes payable. Due date is the date by which at least the minimum payment must be made to avoid to possibility of penalty being assessed.

Every month, pay at least the minimum after the closing date and before the due date.
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Moneytalks
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Postby Moneytalks » Fri Mar 16, 2012 4:17 pm

I do as soon as it posts, people think I'm weird for paying before the bill is sent, kinda like paying the waiter right after you tell him your order and not waiting till after the meal, but as long as you pay on time, you're golden! (No pun meant because of your Amex Tehe)
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alb3rt018
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Postby alb3rt018 » Fri Mar 16, 2012 11:18 pm

is it better the amex report high limit every month? or just to report a low limit ?
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Celestine
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Postby Celestine » Sat Mar 17, 2012 10:25 pm

alb3rt018 wrote:Is better to pay my credit card balance before the statement end or wait until the due date?

(This is in reference to the American Express Gold)


Regardless if your card is a charge card or a credit card, pay the balance in full before the due date. That way any problems that may occur during the payment transaction can be fixed in time.
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i_t_man
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Postby i_t_man » Tue Mar 20, 2012 9:10 am

Moneytalks wrote:I do as soon as it posts, people think I'm weird for paying before the bill is sent, kinda like paying the waiter right after you tell him your order and not waiting till after the meal, but as long as you pay on time, you're golden! (No pun meant because of your Amex Tehe)


You're not weird, you're actually being very smart. Let's say you have a card with a $1000 limit and you rack up $800 in charges over the month. Your statement cuts, you get it in the mail, and you send in a payment for the full $800. You think "Great, I paid it off". The problem is that the same day your statement was cut, AMEX notified the reporting agencies that you're using 80% of you available credit. Not good. AMEX doesn't send a follow-up note to the agencies saying "nevermind, he paid it off". All they know is your utilization is very high.

To maintain a high credit score, your goal should be for your balance to be as low as possible on the day your statement cuts. The biggest myth is that you should maintain a small balance to show utilization.

Crashem
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Postby Crashem » Thu Mar 22, 2012 5:41 pm

Most of the newer credit scoring model don't take charge card utilization into account so you are getting a bit of wrong information in this thread. But lets say you are looking for a loan or new credit cards for whatever reason and don't know if they are using an old or new credit score model, the safe bet is to pay whatever you owe at least a couple of days before statement is generated so that they report 0 balance to credit bureaus and therefore no utilization. Otherwise, I would just recommend holding on to your money and paying before due date.

The other thing is that when scoring models do take charge cards into account they use the "high" limit as your credit limit (since these cards are "no preset limit" cards). What I mean by "high" limit is the most you racked up on your card in one month that was reported to the bureaus within the last 12 or 18 months (i forget). So a good strategy is to rack up as much of your expenses on your AMEX one month and let it report so that old scoring models will show little utilization relatively when it reports a balance in the future.
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