Always pay off the statement balance in full by the due date! And always pay down the Current balance before the next billing cycle to keep your credit score up. Good stuff here.
Hi! I’ve been looking for simple and direct to the point videos regarding statement vs current balance and I wanted to say thank you because I think I quite understood it better w ur explanation. My partner and I are new to credit cards and we got our first statement via email w/ a due date of 7/7/2022. We really wanted to build a good credit score for future purposes and we were told to pay the ‘balance’ 5 days before the due date. Will this be helpful? Also, we just paid the current balance instead of the statement bal (which is good, right? Is this how we must pay every month to build a good credit score? 😅) Lastly, is the payment date the same every month? Like ours, will it always be on the 7th every month? We will truly appreciate ur responses. Thank you so much!
Hey thanks for the comment. It’s a bit much to explain in a comment, but I made a video that should help answer the question. Here’s the video (hope it helps) th-cam.com/video/VWDoLyS_1DM/w-d-xo.html
yes, paying your current balance is always good. That way you have no debt that could possibly be forgotten. BUT to build your credit, making payments every month (paying off entire STATEMENT BALANCE each month) is a good way to build a credit score WITHOUT paying extra interest/fees. Youre still paying off your debts within the allotted time given by the credit card company, its just slower. MORE payments = more credit score. Paying your current balance will still build your credit score but leave you open to a $0 month/billing cycle which does nothing for your credit score. Paying statement balance = faster rise in credit score & allows you to save some money in between paychecks or get you enough money in between paychecks, but leaves you open to debt carrying over to the next month that NEEDS to be remembered to be paid before the next billing cycle. Otherwise it will gain interest and possibly missed payment fees. (basically means you have to constantly remember your credit card payment every month) Paying current balance = Erasing all debt from that company but slower rise in credit score. While not having to worry about your credit card payment because you always have it paid off.
This was very helpful. My current balance was actually under my statement balance and it said my minimum payment was 0 (I know not to pay the minimum payment I just use that for reference as knowing I owe money). This must mean I accidentally already payed off the statement balance and I actually owe nothing this month until the next statement period. When I use the BOFA banking app and go to pay off my statement balance it say I owe nothing but I was so scared of interest that last month I payed off the current balance.
I didn't know you only had to pay off your statement balance, my home page for my account only shows my current balance so that's what I pay every month. I'm looking back at the emails they sent me and most of them show as my statement balance being 0 (since I always pay my current balance every month) Does that affect me in a negative way?
I've been paying my current balance for 2yrs and indeed it did help because I have exceptional credit now. But this video did help me understand the statement vs current balance situation.
So say for example, you pay your statement balance by the due date and now your available balance is $300, but statement is still $280. will using the credit card while there is a statement balance negatively impact me ? thanks so mycj
So what I do, is when I spend say 20 pounds on my cc, I transfer 10 pounds straight away, does this affect my statement balance? My cc company sometimes don’t bill me anything at all, so I assume what I’m paying manually is being counted
Help I've had 300.stuck in statement, for two months. I missed one payment my first missed payment ever 3 months ago. Based on app I would have to pass my statement on current balance to pay off statement, I don't want spend 300 more to just pay off the other!. How to fix this ? 3 months ago I literally forgot about paying card off
Hi, if I delay to pay statement balance for 5 days ( due on 23/5 but I pay it on 28/5) and what's going to happen to the total balance and when will be the billing cycle started ?
My Statement Balance is greater than my Total Balance. I was given a bonus from the membership after the statement date. Which do I pay? If I pay Statement Balance, my Total Balance will be in the negative. I’m a bit confused.
Okay so my credit limit is 1000, my statement balance is 912 dollars with a current balance 730 dollars, if I paid 300 towards my credit within that month what would my approximate next statement balance be lmao
Did you already make a payment? Typically the statement will be less than the current balance. You’ll need to pay off your statement balance in full by the due date to avoid paying interest
@@HonestFinance My statement balance is more than my current balance at the moment. I paid $400 after the closing date to bring my card back down to $400 and in the past week and a half Ive accumulated around the same amount of charges to bring my current balance to $800 would I then just have to pay the remaining $400 for that statement?
Hello So If I have $1000 credit limit and I purchase $500 then my outstanding balance and currency balance gone $500? If I have $1000 and I used $1200 then outstanding balance gone be $1000 but current balance gone be $1200? Is this correct
I have a question on my car payment it says: Current amount due: $257.05 Monthly payment: $391.41 I’m confused I’ve make the monthly payments of $400 every month but I’m confused where it says current amount due. Hopefully someone can explain me what’s this about and sorry for my English
I had this happen to me. They’re not applying your extra payments to principal. They’re just slowly reducing one monthly payment. Call them and make sure your extra money goes towards paying down the loan each month
Hopefully this video helped you understand the difference between the statement balance and current balance on your credit card.
Thank u because I was paying the current total balance out of fear
Same😂😂
Cant go wrong with that
Still did not understood lol
Always pay off the statement balance in full by the due date! And always pay down the Current balance before the next billing cycle to keep your credit score up. Good stuff here.
Hi! I’ve been looking for simple and direct to the point videos regarding statement vs current balance and I wanted to say thank you because I think I quite understood it better w ur explanation.
My partner and I are new to credit cards and we got our first statement via email w/ a due date of 7/7/2022. We really wanted to build a good credit score for future purposes and we were told to pay the ‘balance’ 5 days before the due date. Will this be helpful? Also, we just paid the current balance instead of the statement bal (which is good, right? Is this how we must pay every month to build a good credit score? 😅) Lastly, is the payment date the same every month? Like ours, will it always be on the 7th every month?
We will truly appreciate ur responses. Thank you so much!
Hey thanks for the comment. It’s a bit much to explain in a comment, but I made a video that should help answer the question. Here’s the video (hope it helps) th-cam.com/video/VWDoLyS_1DM/w-d-xo.html
i love you, my brain actually hit an enlightenment
Thank you very much for the information! Super clear and to the point 👍🏾
Let’s just say my statement balance is 50 and my current balance is 60 and I pay the statement balance. Will my next statement balance be 10$?
Yes, exactly right .
@@HonestFinance thanks
Thank you!! This was very confusing to me but you explained it very well
Glad it helped
But can you still pay the current balance if you want to and not the statement balance?
yes, paying your current balance is always good. That way you have no debt that could possibly be forgotten. BUT to build your credit, making payments every month (paying off entire STATEMENT BALANCE each month) is a good way to build a credit score WITHOUT paying extra interest/fees. Youre still paying off your debts within the allotted time given by the credit card company, its just slower. MORE payments = more credit score.
Paying your current balance will still build your credit score but leave you open to a $0 month/billing cycle which does nothing for your credit score.
Paying statement balance = faster rise in credit score & allows you to save some money in between paychecks or get you enough money in between paychecks, but leaves you open to debt carrying over to the next month that NEEDS to be remembered to be paid before the next billing cycle. Otherwise it will gain interest and possibly missed payment fees. (basically means you have to constantly remember your credit card payment every month)
Paying current balance = Erasing all debt from that company but slower rise in credit score. While not having to worry about your credit card payment because you always have it paid off.
Thank you very much. I have taken fucking years to understand as simple as this.
So i shouldnt by somthing n pay it off tha week
Can I check the amount I have charged this month, on line, before receiving statement in mail.?
Yes. Online will track your spending
If you pay the $999 instead of $1000 on the statement balance - do they charge you interest on 1000$
No, but you’ll pay interest going forward until you pay off the statement in full
I got a -$2500 credit statement what does it mean? But my current balance is $450. Doesn’t make sense.
This was very helpful. My current balance was actually under my statement balance and it said my minimum payment was 0 (I know not to pay the minimum payment I just use that for reference as knowing I owe money). This must mean I accidentally already payed off the statement balance and I actually owe nothing this month until the next statement period. When I use the BOFA banking app and go to pay off my statement balance it say I owe nothing but I was so scared of interest that last month I payed off the current balance.
I didn't know you only had to pay off your statement balance, my home page for my account only shows my current balance so that's what I pay every month. I'm looking back at the emails they sent me and most of them show as my statement balance being 0 (since I always pay my current balance every month) Does that affect me in a negative way?
It’s a little hard to explain. Here’s a video that should help on credit card payments th-cam.com/video/LV1id7bSyvc/w-d-xo.html
Credit utilization will be reported as zero which could be better for increasing your credit
It’ll help
I've been paying my current balance for 2yrs and indeed it did help because I have exceptional credit now. But this video did help me understand the statement vs current balance situation.
What happens if i pay the current balance before i pay the statement balance
Then you won’t have a statement balance leftover
So say for example, you pay your statement balance by the due date and now your available balance is $300, but statement is still $280. will using the credit card while there is a statement balance negatively impact me ? thanks so mycj
Once you pay the statement , the available balance will grow because you’ll owe less
Does paying the statement balance lower the current balance?
Yes. It’ll offset the difference
@@HonestFinance awesome. Thank you for that info.
You’re welcome. Hopefully it made sense
Yes, so like
S Bal = $500
C Bal = $1000
You pay s Bal full, now it's:
S bail = $0
C Bal = $500
if i spent money this month (march), the due date would be the following month after? (april)
Yes
So what I do, is when I spend say 20 pounds on my cc, I transfer 10 pounds straight away, does this affect my statement balance? My cc company sometimes don’t bill me anything at all, so I assume what I’m paying manually is being counted
but why is my statement balance bigger than my current balance
Because you done f up... Jk I think because you owe more from previous cycle than the current balance you spent current cycle. I think 🤔
so does that mean i have to pay both the statement and current balance at due date?
Just the statement. Anything leftover will be on next month’s statement
Help I've had 300.stuck in statement, for two months. I missed one payment my first missed payment ever 3 months ago. Based on app I would have to pass my statement on current balance to pay off statement, I don't want spend 300 more to just pay off the other!. How to fix this ? 3 months ago I literally forgot about paying card off
How is may statement balance higher than my current balance?
I just cleared both my current balance and my closing statement balance.
Because I never know when there’s an emergency.
Hi, if I delay to pay statement balance for 5 days ( due on 23/5 but I pay it on 28/5) and what's going to happen to the total balance and when will be the billing cycle started ?
You’ll start to accrue interest until you get the statement bal paid in the future.
@@HonestFinance thanks 👍
Thank you for informing us.
You’re welcome. I hope it helped
Nice explanation. 🙏🏽
Do you know which credit union report the statement balance for the credit utilization and which one report the current balance for credit utilization
👍
Is it bad to pay the current balance and it’ll show zero dollars on your statement balance for building credit
No that’s great
My Statement Balance is greater than my Total Balance. I was given a bonus from the membership after the statement date. Which do I pay? If I pay Statement Balance, my Total Balance will be in the negative. I’m a bit confused.
Thank u bro
Good info here, thanks!
Sooooo helpful!!!!
Thank you for helping
Okay so my credit limit is 1000, my statement balance is 912 dollars with a current balance 730 dollars, if I paid 300 towards my credit within that month what would my approximate next statement balance be lmao
I’m so confused about how paying off credit card works
Did you already make a payment? Typically the statement will be less than the current balance. You’ll need to pay off your statement balance in full by the due date to avoid paying interest
@@HonestFinance My statement balance is more than my current balance at the moment. I paid $400 after the closing date to bring my card back down to $400 and in the past week and a half Ive accumulated around the same amount of charges to bring my current balance to $800 would I then just have to pay the remaining $400 for that statement?
Just pay whatever is showing online to complete the statement balance payment
Ty
Thank youuu
You’re welcome. Thanks for watching
Great Video
Hello
So If I have $1000 credit limit and I purchase $500 then my outstanding balance and currency balance gone $500?
If I have $1000 and I used $1200 then outstanding balance gone be $1000 but current balance gone be $1200?
Is this correct
what if my statement balance is negative😦
Same!
That means you got a refund somewhere and it’s a good thing.
I have a question on my car payment it says:
Current amount due: $257.05
Monthly payment: $391.41
I’m confused I’ve make the monthly payments of $400 every month but I’m confused where it says current amount due. Hopefully someone can explain me what’s this about and sorry for my English
I had this happen to me. They’re not applying your extra payments to principal. They’re just slowly reducing one monthly payment. Call them and make sure your extra money goes towards paying down the loan each month