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Pay the statement balance to avoid interest being charged. Pay the current balance to lessen your credit utilization, thus helping to improve your credit score.
@@rickyssj7695 holy shit I was panicking Bc I was trying to pay it and the balance never diminished and I had no clue what was going on so glad I found this.
Simply put 1. just pay your current balance to pay everything. Done you owe nothing. No interest…your gravy in the navy. You’ll see everything go to zero after the closing date at the end of the billing cycle if you don’t put any new charges in between. 2. Pay the statement balance in full to avoid being charged interest. But you will owe all new charges not included in that balance next due date. 3. Pay minimum or less than statement balance by due date to avoid late fee. You will be charged interest on what ever you don’t pay.
I like how Citi and Chase show what remaining statement balance is left due in a tracker, which shows you exactly what is due vs the other guys. With Cap One and Discover you have to keep up with the amount of payments that you have made, to make sure that it has passed the statement amount. Its a very helpful tool if like me you float a balance every month. I still keep up with it bc I don't pay interest either, but those trackers definitely help to see whats left.
Thank you, i thought so, i was on hold with a bank rep that told me i would have to have an zero balance to avoid any interest, i was sure she was wrong and viewed your video while she placed me on hold to get clarification, she came back and apologized for her error, i remarked “i was just watching a youtube video that confirmed i was correct” 🎉❤
From my understanding we are only suppose to pay the statement balance every month to avoid interest fees. So do not pay current balance ONLY STATEMENT BALANCE. PS. It will boost your credit score if you do this 6 months consecutive! Thank Me Later!
I paid my current balance yesterday and today I pay statement balance today. I do not know that I own $72.73 until I watch this video. Thank you for the video.
I’m fairly new to credit and I didn’t know this until I got the Apple Card. Apple does a pretty fantastic job in the wallet app explaining what you owe, and how much in interest you’ll be charged if you don’t pay off your statement balance in full. Before this, I would just keep my balance at 0 at the end of every month
Great Video! Thank you so much! I've been paying my entire current balance almost every time and keeping sometimes very little money in my wallet when it was not necessary.
The thing that’s throwing me is my statement balance $260, my current balance is $0. I assumed the statement balance is the interest I’ve accrued but when I made a payment for half the statement balance with my current balance at $0. I just ended up with a negative balance on my current balance and my statement balance never changed.
Nahh it's not the interest you've accrued, statement balance will just show that amount till next billing cycle, won't change till then. As long as your current balance is $0 it means you paid off your statement and any further payments will give you additional credit (which is why you see negative) Since it's been a month since your comment, did your statement balance change/reflect appropriately in the following month?
Lately what I do notice if you have a very Good or exceptional payment history, if you make a payment on that day or prior, like Capital One, they will immediately show your new balance with payment included...
I’m a little bit bewildered. I’ve understood that Statement Balance seems to be the main priority whenever you pay off the balance prior to its billing date. But how about my current balance? From an objective standpoint, when would it be incumbent to pay that off?
Thanks. I was confused for a second, because I always pay the current balance, I never knew they had a Statement balance until today. My current balance is $135 and my statement balance is $170. I just paid that $135 and thought I had to pay that $170.
Good videos … the closing statement date and due date in regards to how to use them for the purposes of having a low utilization first made sense to me once I seen your video on it … and then came back to it … after watching other videos that just confused me I needed to watch yours watch a few others then come back and watch yours … good stuff and thanks…
So basically Paying your current balance will pay for your statement balance plus any charges you've made since the end of that billing cycle, right ?!?
I'm kind of confused because you said the current balance is normally the higher number of the 2 but I wanted to make a payment and it shows the statement balance $231 and current balance as $180 so I figured I'd pay off the statement balance because it's the higher number but when I tried to submit the payment it said the payment can't be higher then the current balance 🤔 so why even have the option to pay the statement balance if I can't even pay it. So confused about this ahahah maybe I've done something wrong. Still confused on how the statement balance can be higher then the current balance
Thanks for this. I've had a discover for a couple years now, and have always paid the current balance. This month I have to pay the statement balance because money's tight. So, if I do that for this month and pay the current balance next month there should be no interest, right? I think so. Thanks.
No, it just shows you the amount of money u owed them at the time of the statement was out. It will be updated when the next statement is ready. To make it simpler, just pay all the outstanding balance before the due date and you will not gonna be charged by anything (except annual fee or credit card fee).
I have a question. It’s pretty long but please bear with me. For example, I have a 500$ credit limit. I wanna keep my utilization low when it’s reported so I keep a balance of 5$ on there. My statement closing date is on the 4/15/2020 but my due date is 5/12/2020….when I check the app, the statement balance should be the 5$ and current should be anything I bought past 4/15/2020 plus 5$, correct? And to avoid late fees and interest I would have to pay that statement balance prior to the due date that’s 5/12/2020. Then I can go back and pay any remaining balance before the next statement date to keep the utilization low?
CAPITAL ONE REPORTS highest balance and not my statement balance. .they are reporting a highest balance of 904 on a 600 limit. I use my card daily in my business so I make 6 or more pmts a month on my card. where do they get the highest balance? Ive never had a 904 .balance on any of my statements and in 2 yrs have never paid an interest fee wouldnt that mean I went over my limit? The lady at capital one said they add your total monthly transactions and previous balance. The previouse balance is just what your last statement balance was? so why would they add that to your new balance?
Yes, pay it off in one billing cycle. Try ending a billing cycle with 1-3% utilization, technically it will raise your credit score more than have it at 0% utilization
I'm from the UK so the credit system will likely differ here than in the states, but I would like to ask is it better to have your utilisation rate be 0% or slightly above that hovering around 10% because I hear that it's good to have your current balance be above 0% to show activity to the agency or bureau your credit provider has given them. Does having a utilisation above 0% but no bigger 10% improve my credit score or is straight up paying my full current balance the better option to improving my credit score? Thank you
Hopefully you see this but let’s just say I have a statement balance of 50 and current balance of 60 and I pay my statement balance . Will I only owe 10$ on my next statement bill??
If your statement balance is $50 and your current balance is $60, and you pay the statement balance of $50, then you would only owe $10 on your next statement bill. However, please remember to check the due date and make sure you pay on time to avoid any additional charges.
@@johncarter2605bro thank you! this was the exact answer i was looking for, for my question haha. my statement balance racked up to $600 and i didn’t realize til a couple days ago 😂
Ok so, my last statement bal was $36.50 (which is due 11/8) but yesterday the creditor applied a reward credit (which lowered my current bal to $34.75). Do I still pay the statement bal? Will they even accept a payment that is over the current bal? 🤔
You can pay it off a head of time, if you can. But you Must pay it once the due date come up or run the risk of interest/late fees. (Also, you can lose your "Grace Period" which means you will ne charged tiny fees per transaction until you make 2 on time payments after 1 late payment.)
If your intention is to pay off your last statement balance then just process that amount, keep in mind though if you made purchases after the statement was generated you will still have a balance on your credit card which will be due till the next statement cycle, if what you're trying to do is to pay your balance completely off so you get to have full availability on your credit card, I'd recommend you to either check that amount online or if you want to be sure, call your credit card company so an agent can provide the most accurate amount. Remember I'm speaking in general here so for better details on your own credit card, always check with your bank to avoid misunderstandings.
So I have a question I paid my statment balance of 417 on the 4th and I just received the new stament on the 11th that says 893$ between that time before I relieved it I put 450 into the card does that mean I just owe 443 since I paid 450 between the 5 to the 11?
@@ProudMoneythis comment you’re telling them to pay their statement balance but you have liked and commented on other comments telling people to pay their current balance ….
not sure what you are referring to specifically, sometimes i "like" comments just to show i have seen them but not sure what you saw. but i stand by my comment in this thread, pay off statement balance in full
It did. Wish I could show you mines 2 be clear. But anyways my due date is the 7th of every month. Statement date is the 10th. At the moment, my credit card is @ 0 apr til April 21rst of 21. Had not for the 0 apr I would be paying interest. I have a $97 dollar balance afterwards. Normally, I wouldn't have 2 worry bout paying interest, on that debt right❓
@@ProudMoney Basically I was summarizing, my due date 📅 and statement 📅. Didnt mean 2 make it complicated. This has been shown before. But 4 me paying the balance in full never let me down 💯
My statement balance of 1700 and I have refund of $700 for this month only on my credit card how should I pay my credit card for this month? Should I go ahead and take off the $700 of refund from the statement balance on my credit card and pay only thousand to avoid interest the purchases were made in the last billing cycle refunds received in a different billing cycle. How do I resolve this issue? Please let me know the bank is not able to help me. I always pay my statement balance for every month but lost two cycles. I’ve been trying to reduce the refund from the statement balance account and they have charge me interest on my other credit card so I’m scared to do a big amount on this credit card.
if you spend $1k during the statement closing date, then it will be $1k. E.g. my due date is on the 2nd of every month. I’ll pay my credit card off in full; On the 3rd i spend money till my statement date which closes on the 6th. I had spend $50 between the 2nd till the 6th so my statement balance is $50
I think is because the statement balance charges you all the days you use your car until that “cut day” and the current balance is all the charges done after that “cut date”
The quick answer is because you have made more payments than the new purchases to your credit card. I can explain this by this formula: current balance (CB)= statement balance (SB)+ new purchases (NP)- payments(P). NP = CB - SB + P For example last month at 01.01. your CB was $100, and SB was 100. You bought some books, coffee, gas for $50. Now your CB is $150 ($100 SB + $50 NP). Then you go ahead and make a $60 to your credit card, now your CB is $90, but your SB is still $100. So in order not to incur interest, you have to make another $40. You paid $40 P then your CB will be $50 and SB $100 (CB < SB). You buy some other goods, food, grocery, services worth $200, your CB will be $250, SB 100 (CB > SB). You don't make any other purchases or payments until the end of the statement date. So at 01.02. your SB is $250, and CB is $250. You have to make sure you pay off your statement balance every month.
I just asked my credit card company what would happen if I paid my $1200 statement balance and they said it would bring my balance to 0 but then I told her I paid my balance off a week ago and she looked and said that if I paid that $1200 I would have had $1200 credit and they would owe me money instead.It’s happened before.I overpaid because I payed my statement balance that is inaccurate
I have a question: let’s say my statement balances is 60(after closing date)and my current balance is also 60 but I will buy more items for 40(now my current balance is 100 but stamens balance is still 60) then I will pay statement balance of 60 on payments date due.does it mean I don’t have to pay 40 dollars that I use after closing date? If so does it mean I have won 40 dollars? If not will 40 be add to a new statement balance?
My current balance is $1041 then may state balance is also$ 1041...My due date is on March 8...then I paid d statement balance$1041 then in my current balance was$ 88. 00 that appeared... What is it??Last day after I paid d $1041,i used again my credit card.....
I didn't know you only had to pay the statement balance, every month I pay my current balance, so every month my statement balance is very low or even at 0, does that affect me?
To avoid interest always pay statement balance. If you pay your current balance you’re just giving extra money to the bank that’s why your statement balance is always low so look at the statement balance of every month and go ahead and paid it so that you don’t include any interest, but don’t give any more money to the bank. It’s always better for you to keep the physical cash in your bank account rather than giving it to an outside person.
Ok so my current balance is 137.73 and my statement balance is 169.96 but if I try paying my statement balance it says I cannot make greater then the your outstanding current balance of 137.73 what does that mean
Its probably because you have already made a partial payment. Your current balance is your statement balance + new charges on ur card after your statement due date. If you didnt use your card after ur statement due date, that means you have to pay the $137.73 within 25 days. But if you incurred lets say $37.73 after your statement due date, you will only have to pay $100 within 25 days or else it’ll gain interest. If that makes sense 😭
@@UsernameJoel I have a question: let’s say my statement balances is 60(after closing date)and my current balance is also 60 but I will buy more items for 40(now my current balance is 100 but stamens balance is still 60) then I will pay statement balance of 60 on payments date due.does it mean I don’t have to pay 40 dollars that I use after closing date? If so does it mean I have won 40 dollars? If not will 40 be add to a new statement balance?
Questions for you. If my statement balance is $238.57 and my current balance now is $274.89. And I pay the full amount of $238.57 to avoid interest rates. Do I still get charge interest for the remainder balance which in this case is $36.32. And also in previous videos you said to carry an small balance (8-10%) of your credit limit so it can help you with your credit score. But paying in full you do saves interest but credit wise you don't/do reflect responsible credit card users.
You do not get charged interest for the $36.32 because the statement which will include that current amount has not been generated yet. Paying the $238.57 is enough to avoid 100% interest.
@@antbrooks1625 I have a question: let’s say my statement balances is 60(after closing date)and my current balance is also 60 but I will buy more items for 40(now my current balance is 100 but stamens balance is still 60) then I will pay statement balance of 60 on payments date due.does it mean I don’t have to pay 40 dollars that I use after closing date? If so does it mean I have won 40 dollars? If not will 40 be add to a new statement balance?
Pay the statement if you want to pay more than what you owe.Just because your statement balance says you owe $100 does not mean that is what you really owe
Q: I am so confused. I got my first card in DECEMBER. I used it a few times and the app said I owed X dollars. I set my autopsy from my bank to pay that amount and I waited to use the card again until it was paid. After it was paid I saw a NEW balance owing. I panicked and wanted to make sure I paid it, but first contacted the company to understand why this new charge showed up. here is what doesn't make sense. Apparently in the MONTH OF DECEMBER I had made x purchases and it just didn't show the full amount at first (weekend or whatever). BUT they said I didn't owe this new amount until "later"?!?!?!?!?!?! The frick?! I spent 20 mins on chat and I STILL don't understand why I don't owe the rest of the amount until later but I did owe a partial amount right away?!?!?! I hadn't had the card even a full 30 days?!?!?! SO CONFUSING!
I'm so confused I got my new credit card around the 3rd week of July and it said my due date for my card is September 15. Right now my statement balance is around $300 I'm kinda confused on what I did wrong to get that. I thought everything u use will go to current balance so u pay when it's due
@@itsricksung that’s what I thought. From the video it says that paying the statement balance pays both current and statement. But the guy replied said it doesn’t. So im confused?
I thought I understood this but I guess I dont. I pay off my card in full every month (current balance) but I still have a statement balance which is adding onto my current balance. Is that correct? Getting confused
I've been doing it too since i got my credit card I only was told to only use 30% or less and to pay in full But they never explained to me anything about statement balance or current balance. Now I know that the statement balance is the balance you have to pay by your due date to avoid paying interest and late fees And whatever is left after you pay the statement balance will be the current balance which will be your amount to pay in the next due date. Makes sense? In order to avoid interest and late fees you have to pay your statement balance only and for your current balance you'll get a certain day to pay to but you dont have to pay it now,Your due date for that amount will be pretty much next month
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Pay the statement balance to avoid interest being charged. Pay the current balance to lessen your credit utilization, thus helping to improve your credit score.
I have $20 in my statement balance I paid it but it isn’t disappearing please help
@@rickyssj7695 did you wait couple days ? Did it disappear
@@yu4233 yes it disappeared just had to wait until my next payment date lol
@@rickyssj7695 holy shit I was panicking Bc I was trying to pay it and the balance never diminished and I had no clue what was going on so glad I found this.
@@Kamezdud lmfqoooo im dying
Simply put
1. just pay your current balance to pay everything. Done you owe nothing. No interest…your gravy in the navy.
You’ll see everything go to zero after the closing date at the end of the billing cycle if you don’t put any new charges in between.
2. Pay the statement balance in full to avoid being charged interest. But you will owe all new charges not included in that balance next due date.
3. Pay minimum or less than statement balance by due date to avoid late fee. You will be charged interest on what ever you don’t pay.
Yeah...if u can afford to do that. What r u rich??
I like how Citi and Chase show what remaining statement balance is left due in a tracker, which shows you exactly what is due vs the other guys. With Cap One and Discover you have to keep up with the amount of payments that you have made, to make sure that it has passed the statement amount. Its a very helpful tool if like me you float a balance every month. I still keep up with it bc I don't pay interest either, but those trackers definitely help to see whats left.
Thank you, i thought so, i was on hold with a bank rep that told me i would have to have an zero balance to avoid any interest, i was sure she was wrong and viewed your video while she placed me on hold to get clarification, she came back and apologized for her error, i remarked “i was just watching a youtube video that confirmed i was correct” 🎉❤
lol they don’t know shit
I literally was asking this question myself a minute before this popped up on my feed
Finally I found a video that addressed my concern! Thank you for the clear explanations. ☺️
From my understanding we are only suppose to pay the statement balance every month to avoid interest fees. So do not pay current balance ONLY STATEMENT BALANCE.
PS. It will boost your credit score if you do this 6 months consecutive!
Thank Me Later!
I am new to credit, your videos are very helpful!
I paid my current balance yesterday and today I pay statement balance today. I do not know that I own $72.73 until I watch this video. Thank you for the video.
I’m fairly new to credit and I didn’t know this until I got the Apple Card. Apple does a pretty fantastic job in the wallet app explaining what you owe, and how much in interest you’ll be charged if you don’t pay off your statement balance in full. Before this, I would just keep my balance at 0 at the end of every month
Great Video! Thank you so much! I've been paying my entire current balance almost every time and keeping sometimes very little money in my wallet when it was not necessary.
The thing that’s throwing me is my statement balance $260, my current balance is $0. I assumed the statement balance is the interest I’ve accrued but when I made a payment for half the statement balance with my current balance at $0. I just ended up with a negative balance on my current balance and my statement balance never changed.
Nahh it's not the interest you've accrued, statement balance will just show that amount till next billing cycle, won't change till then. As long as your current balance is $0 it means you paid off your statement and any further payments will give you additional credit (which is why you see negative)
Since it's been a month since your comment, did your statement balance change/reflect appropriately in the following month?
So basically pay the last statement balance and I won’t get charged interest?
This is amazing. I just pay it all and get a zero statement balance, but I didn’t know this. Great video.
God bless you mann! Finally someone who makes it make some damn sense!!
Lately what I do notice if you have a very Good or exceptional payment history, if you make a payment on that day or prior, like Capital One, they will immediately show your new balance with payment included...
I’m a little bit bewildered. I’ve understood that Statement Balance seems to be the main priority whenever you pay off the balance prior to its billing date.
But how about my current balance? From an objective standpoint, when would it be incumbent to pay that off?
Thanks. I was confused for a second, because I always pay the current balance, I never knew they had a Statement balance until today. My current balance is $135 and my statement balance is $170. I just paid that $135 and thought I had to pay that $170.
So, that means if you pay the current balance, the bank won’t make you pay for the statement balance?
I’m new to this so I have to ask.
Does paying off the statement bill also pay your current balance??
So basically pay the higher of the 2 balances
Thank you for giving multiple examples!
Good videos … the closing statement date and due date in regards to how to use them for the purposes of having a low utilization first made sense to me once I seen your video on it … and then came back to it … after watching other videos that just confused me I needed to watch yours watch a few others then come back and watch yours … good stuff and thanks…
Really appreciate this, this video literally answered all the questions I had in my minds. Thanks
I heard it first from proud money another good content.
I always pay off the current balance 1 or 2 days before the billing cycle ends and don't charge anything until the new billing cycle begins.
How do you know when a new cycle begins
Extremely helpful and easy to follow. Thanks!
Great review! Also cool shirt.
perfect timing, thanks for the info!
this was extremely helpful, thanks !!
My statement balance is over 800 and my current is 301.
Same bro
Am still lost
So basically Paying your current balance will pay for your statement balance plus any charges you've made since the end of that billing cycle, right ?!?
correct
Great explanation!
Great explanation with very clear examples, thank you! new subscriber
Answered my questions concisely!
You are so good ! I got it now ! Thanks for that valuable content.
You answered the right questions thank you!!!
Been using my credit card for 6 months didn’t even realize i had to pay my statement balance thanks for the info ✅
I had no clue either..... now i owe a shitload
@@kevaughnlindo545 Mine isn’t too bad because i always paid my bill in full interest can be a bitch better off paying it as soon as possible
@@jungleent9714 I always paid the current balance in full, as i thought that it was the balance which the interest would be calculated.
I needed this video bro
what if my statement balance is more than my current balance and I paid the current balance in full.
I'm kind of confused because you said the current balance is normally the higher number of the 2 but I wanted to make a payment and it shows the statement balance $231 and current balance as $180 so I figured I'd pay off the statement balance because it's the higher number but when I tried to submit the payment it said the payment can't be higher then the current balance 🤔 so why even have the option to pay the statement balance if I can't even pay it. So confused about this ahahah maybe I've done something wrong. Still confused on how the statement balance can be higher then the current balance
My exact situation!
*Just curious & hope it never happens but how do know if there’s interest charges? I have Chase Bank*
I learned something new today! 1000 thanks !! 😊 👌🏾💯
Thanks for this. I've had a discover for a couple years now, and have always paid the current balance. This month I have to pay the statement balance because money's tight. So, if I do that for this month and pay the current balance next month there should be no interest, right? I think so. Thanks.
Thank you so much, this was great for my understanding. Which one will be reported for credit utilization?
@@Jeff-be5zt So if I charge $400 and pay it completely, they will report $400 for my utilization until I go an entire month paid off?
Best explanation I've watched. Thank you sir 🙏😁
Thanks!
So if i paid my current balance all they way off i dont owe the statement balance then?
yes
Yes
But with AMEX you can have a zero total balance and still owe on your statement balance...
well what does it mean when your statement balance is a negative number.
I paid my current balance and it went to zero but my statement balance is still 136. Should I pay that also? If so I’ll be paying double money
No, it just shows you the amount of money u owed them at the time of the statement was out. It will be updated when the next statement is ready. To make it simpler, just pay all the outstanding balance before the due date and you will not gonna be charged by anything (except annual fee or credit card fee).
Outstanding balance is not one of the options.It’s either the statement balance or the current balance.
That $136 is what was charged on your card for purchases in the new billing period.
Thanks for the explanation 😌
I understand what your saying but after calculating my current balance, I still can't find where it's from
I have a question. It’s pretty long but please bear with me. For example, I have a 500$ credit limit. I wanna keep my utilization low when it’s reported so I keep a balance of 5$ on there. My statement closing date is on the 4/15/2020 but my due date is 5/12/2020….when I check the app, the statement balance should be the 5$ and current should be anything I bought past 4/15/2020 plus 5$, correct? And to avoid late fees and interest I would have to pay that statement balance prior to the due date that’s 5/12/2020. Then I can go back and pay any remaining balance before the next statement date to keep the utilization low?
CAPITAL ONE REPORTS highest balance and not my statement balance. .they are reporting a highest balance of 904 on a 600 limit. I use my card daily in my business so I make 6 or more pmts a month on my card. where do they get the highest balance? Ive never had a 904 .balance on any of my statements and in 2 yrs have never paid an interest fee wouldnt that mean I went over my limit? The lady at capital one said they add your total monthly transactions and previous balance. The previouse balance is just what your last statement balance was? so why would they add that to your new balance?
Nice explanation
I got a question? For an example if I have $1,000 credit card limit and I use $400 is that bad? Would I screw up my credit score?
Won’t screw it up will just lower your utilization at first but if you simply pay it off your score will bounce back.
Yes, pay it off in one billing cycle. Try ending a billing cycle with 1-3% utilization, technically it will raise your credit score more than have it at 0% utilization
Thank you!
So when do I pay the current balance ?
Next billing cycle. You buy your needs such as bills, food, gas, etc… during the “gracing period”.
So if I pay my current balance would that lower my statement balance?
Yes but more importantly, pay the statement balance due to date. So you want be charged interest fees.
In the “grazing period”, is when your previous billing cycle is being sent to the three Credit bureaus.
Helpful, Thanks
How long it take statement balance disappear after pay off?? Because I paid it but it didn’t disappear in 3 days.
I'm from the UK so the credit system will likely differ here than in the states, but I would like to ask is it better to have your utilisation rate be 0% or slightly above that hovering around 10% because I hear that it's good to have your current balance be above 0% to show activity to the agency or bureau your credit provider has given them. Does having a utilisation above 0% but no bigger 10% improve my credit score or is straight up paying my full current balance the better option to improving my credit score? Thank you
So do i pay both?
No you don't. You can choose either one. It is recommended to pay the statement balance though! hope that helps. 🙂
Hopefully you see this but let’s just say I have a statement balance of 50 and current balance of 60 and I pay my statement balance . Will I only owe 10$ on my next statement bill??
If your statement balance is $50 and your current balance is $60, and you pay the statement balance of $50, then you would only owe $10 on your next statement bill. However, please remember to check the due date and make sure you pay on time to avoid any additional charges.
@@johncarter2605bro thank you! this was the exact answer i was looking for, for my question haha. my statement balance racked up to $600 and i didn’t realize til a couple days ago 😂
Ok so, my last statement bal was $36.50 (which is due 11/8) but yesterday the creditor applied a reward credit (which lowered my current bal to $34.75). Do I still pay the statement bal? Will they even accept a payment that is over the current bal? 🤔
Hello so you should not go over credit limit. If you do then your current balance will be higher then your outstanding balance. Am I correct?
@ProudMoney-Credit Cards & Personal Finance. Is closing date is the date I have to pay for the statement balance? (just got a credit card)
You can pay it off a head of time, if you can.
But you Must pay it once the due date come up or run the risk of interest/late fees.
(Also, you can lose your "Grace Period" which means you will ne charged tiny fees per transaction until you make 2 on time payments after 1 late payment.)
How do i pay off my last statement balance on my secured credit card
If your intention is to pay off your last statement balance then just process that amount, keep in mind though if you made purchases after the statement was generated you will still have a balance on your credit card which will be due till the next statement cycle, if what you're trying to do is to pay your balance completely off so you get to have full availability on your credit card, I'd recommend you to either check that amount online or if you want to be sure, call your credit card company so an agent can provide the most accurate amount. Remember I'm speaking in general here so for better details on your own credit card, always check with your bank to avoid misunderstandings.
Should I pay my statement due or current outstanding. If my current outstanding is less than statement due
So I have a question I paid my statment balance of 417 on the 4th and I just received the new stament on the 11th that says 893$ between that time before I relieved it I put 450 into the card does that mean I just owe 443 since I paid 450 between the 5 to the 11?
So laying the current balance will include the statement since they are not separate?
Thank you
My question is would there be benefits from paying both or am i just better of just paying the statement
just pay off statement balance in full and you're in good shape
If you loan my $100 and I pay you $50 and you send me a statement balance of $100 should I pay the $100
@@ProudMoneythis comment you’re telling them to pay their statement balance but you have liked and commented on other comments telling people to pay their current balance ….
not sure what you are referring to specifically, sometimes i "like" comments just to show i have seen them but not sure what you saw. but i stand by my comment in this thread, pay off statement balance in full
It did. Wish I could show you mines 2 be clear. But anyways my due date is the 7th of every month. Statement date is the 10th. At the moment, my credit card is @ 0 apr til April 21rst of 21. Had not for the 0 apr I would be paying interest. I have a $97 dollar balance afterwards. Normally, I wouldn't have 2 worry bout paying interest, on that debt right❓
Not sure i follow your question?
@@ProudMoney Basically I was summarizing, my due date 📅 and statement 📅. Didnt mean 2 make it complicated. This has been shown before. But 4 me paying the balance in full never let me down 💯
Thank you soooo much
Thank You.
My statement balance of 1700 and I have refund of $700 for this month only on my credit card how should I pay my credit card for this month? Should I go ahead and take off the $700 of refund from the statement balance on my credit card and pay only thousand to avoid interest the purchases were made in the last billing cycle refunds received in a different billing cycle. How do I resolve this issue? Please let me know the bank is not able to help me.
I always pay my statement balance for every month but lost two cycles. I’ve been trying to reduce the refund from the statement balance account and they have charge me interest on my other credit card so I’m scared to do a big amount on this credit card.
Does paying the statement balance hurt your score?
Why dont we learn this in school? Lol.
We’d be wise to the scam
You have wouldn’t paid attention
If I have a $1,000 credit limit and spend $1,000, is my statement balance $1,000?
if you spend $1k during the statement closing date, then it will be $1k.
E.g. my due date is on the 2nd of every month. I’ll pay my credit card off in full; On the 3rd i spend money till my statement date which closes on the 6th. I had spend $50 between the 2nd till the 6th so my statement balance is $50
Why would my statement balance be higher than my current?
I’m in the same boat
I think is because the statement balance charges you all the days you use your car until that “cut day” and the current balance is all the charges done after that “cut date”
The quick answer is because you have made more payments than the new purchases to your credit card.
I can explain this by this formula: current balance (CB)= statement balance (SB)+ new purchases (NP)- payments(P).
NP = CB - SB + P
For example last month at 01.01. your CB was $100, and SB was 100. You bought some books, coffee, gas for $50. Now your CB is $150 ($100 SB + $50 NP). Then you go ahead and make a $60 to your credit card, now your CB is $90, but your SB is still $100. So in order not to incur interest, you have to make another $40. You paid $40 P then your CB will be $50 and SB $100 (CB < SB). You buy some other goods, food, grocery, services worth $200, your CB will be $250, SB 100 (CB > SB). You don't make any other purchases or payments until the end of the statement date. So at 01.02. your SB is $250, and CB is $250.
You have to make sure you pay off your statement balance every month.
Hi, I paid my due balance of 184.33$ but suddenly my current balance changed to that too (184.33$) but how it is the exact number I just paid?
If you also pay your current balance, would that also improve your credit score?
I just asked my credit card company what would happen if I paid my $1200 statement balance and they said it would bring my balance to 0 but then I told her I paid my balance off a week ago and she looked and said that if I paid that $1200 I would have had $1200 credit and they would owe me money instead.It’s happened before.I overpaid because I payed my statement balance that is inaccurate
Closing in on 26k
I have a question: let’s say my statement balances is 60(after closing date)and my current balance is also 60 but I will buy more items for 40(now my current balance is 100 but stamens balance is still 60) then I will pay statement balance of 60 on payments date due.does it mean I don’t have to pay 40 dollars that I use after closing date? If so does it mean I have won 40 dollars? If not will 40 be add to a new statement balance?
Yea those $40 will be billed for the next statement cycle
My current balance is $1041 then may state balance is also$ 1041...My due date is on March 8...then I paid d statement balance$1041 then in my current balance was$ 88. 00 that appeared... What is it??Last day after I paid d $1041,i used again my credit card.....
I didn't know you only had to pay the statement balance, every month I pay my current balance, so every month my statement balance is very low or even at 0, does that affect me?
To avoid interest always pay statement balance. If you pay your current balance you’re just giving extra money to the bank that’s why your statement balance is always low so look at the statement balance of every month and go ahead and paid it so that you don’t include any interest, but don’t give any more money to the bank. It’s always better for you to keep the physical cash in your bank account rather than giving it to an outside person.
Ok so my current balance is 137.73 and my statement balance is 169.96 but if I try paying my statement balance it says I cannot make greater then the your outstanding current balance of 137.73 what does that mean
Its probably because you have already made a partial payment. Your current balance is your statement balance + new charges on ur card after your statement due date. If you didnt use your card after ur statement due date, that means you have to pay the $137.73 within 25 days. But if you incurred lets say $37.73 after your statement due date, you will only have to pay $100 within 25 days or else it’ll gain interest. If that makes sense 😭
Which one gets reported to the credit Bureaus ??
Statement balance
paying the statement balance also helps keeps your utilization % down if not under a 10%. This helps your credit report score stay afloat as well
If my statement is 1000 and I choose to make 2 500 dollar payments before the due date will interest be charged?
Not unless you pass the due date
Pay 2-3 prior to the due date to insure the payment goes through✅
It also depends on what your credit limit is. “Due date” or “Report Date” should show 0, or even 1-3% utilization.
@@UsernameJoel I have a question: let’s say my statement balances is 60(after closing date)and my current balance is also 60 but I will buy more items for 40(now my current balance is 100 but stamens balance is still 60) then I will pay statement balance of 60 on payments date due.does it mean I don’t have to pay 40 dollars that I use after closing date? If so does it mean I have won 40 dollars? If not will 40 be add to a new statement balance?
That sounds like a rip off why u use 200 but u have to pay does 200 plus other 200 of statements sounds ridiculous
Questions for you.
If my statement balance is $238.57 and my current balance now is $274.89. And I pay the full amount of $238.57 to avoid interest rates. Do I still get charge interest for the remainder balance which in this case is $36.32. And also in previous videos you said to carry an small balance (8-10%) of your credit limit so it can help you with your credit score. But paying in full you do saves interest but credit wise you don't/do reflect responsible credit card users.
You do not get charged interest for the $36.32 because the statement which will include that current amount has not been generated yet. Paying the $238.57 is enough to avoid 100% interest.
@@antbrooks1625 thanks Ant B
@@antbrooks1625 I have a question: let’s say my statement balances is 60(after closing date)and my current balance is also 60 but I will buy more items for 40(now my current balance is 100 but stamens balance is still 60) then I will pay statement balance of 60 on payments date due.does it mean I don’t have to pay 40 dollars that I use after closing date? If so does it mean I have won 40 dollars? If not will 40 be add to a new statement balance?
U r awesome
What if my statement balance is 0$
I guess just pay the current balance
People that carry a balance don’t need to know this! It’s irrelevant at that point!
Statement to avoid interest.
then what should i do with the current balance?
Pay the statement if you want to pay more than what you owe.Just because your statement balance says you owe $100 does not mean that is what you really owe
Q:
I am so confused.
I got my first card in DECEMBER.
I used it a few times and the app said I owed X dollars.
I set my autopsy from my bank to pay that amount and I waited to use the card again until it was paid.
After it was paid I saw a NEW balance owing. I panicked and wanted to make sure I paid it, but first contacted the company to understand why this new charge showed up.
here is what doesn't make sense.
Apparently in the MONTH OF DECEMBER I had made x purchases and it just didn't show the full amount at first (weekend or whatever). BUT they said I didn't owe this new amount until "later"?!?!?!?!?!?!
The frick?!
I spent 20 mins on chat and I STILL don't understand why I don't owe the rest of the amount until later but I did owe a partial amount right away?!?!?! I hadn't had the card even a full 30 days?!?!?!
SO CONFUSING!
Does paying off the statement bill also pay your current balance??
No it only pays the statement then your current balance with stay there until you pay that next month
I'm so confused I got my new credit card around the 3rd week of July and it said my due date for my card is September 15. Right now my statement balance is around $300 I'm kinda confused on what I did wrong to get that. I thought everything u use will go to current balance so u pay when it's due
@@itsricksung that’s what I thought. From the video it says that paying the statement balance pays both current and statement. But the guy replied said it doesn’t. So im confused?
Current balance, is next billing cycle charges + the amount needed to be paid for previous billing cycle charges
I thought I understood this but I guess I dont. I pay off my card in full every month (current balance) but I still have a statement balance which is adding onto my current balance. Is that correct? Getting confused
If you pay the current balance your statement balance is included. There is no additional charge on top of that
I have a statement balance of 48$ and a current balance of 0$. What happened there?!
You haven’t used your card since the last statement was closed
I’m still confused I always pay the current in full
I've been doing it too since i got my credit card
I only was told to only use 30% or less and to pay in full
But they never explained to me anything about statement balance or current balance.
Now I know that the statement balance is the balance you have to pay by your due date to avoid paying interest and late fees
And whatever is left after you pay the statement balance will be the current balance which will be your amount to pay in the next due date.
Makes sense?
In order to avoid interest and late fees you have to pay your statement balance only and for your current balance you'll get a certain day to pay to but you dont have to pay it now,Your due date for that amount will be pretty much next month