When is credit card usage calculated?

[Formerly Black Trash]

Is based on your balances by the due date?

Or just how much you're using overall throughout the month?

I'm guessing it's the latter

 

[Turbulent]

If you don't pay in full by the due date, they charge interest from the date of the purchase if I'm not mistaking.

 

[Ghostface Trillah]

You mean the finance charges?


If so when you get your statement there's a closing date and the payment due date. The closing date is the date when they add the interest to your balance and the due date is when you have to put in a payment by. The closing date is usually 10-15 days before the due date.

 

[Turbulent]

You mean the finance charges?


If so when you get your statement there's a closing date and the payment due date. The closing date is the date when they add the interest to your balance and the due date is when you have to put in a payment by. The closing date is usually 10-15 days before the due date.

That makes more sense

 

[Formerly Black Trash]

You mean the finance charges?


If so when you get your statement there's a closing date and the payment due date. The closing date is the date when they add the interest to your balance and the due date is when you have to put in a payment by. The closing date is usually 10-15 days before the due date.

No the %30 usage that's recommended

To stay within that do I have to never go over during the period?

 

[Ghostface Trillah]

No the %30 usage that's recommended

To stay within that do I have to never go over during the period?

You have to have 70% of your credit available at all times. If you have a $100 limit then you would have to have $70 available on the due date.

 

[Rack4K]

Your utilization is calculated on your statement date which is probably around 5 days after your due date

 

[Formerly Black Trash]

You have to have 70% of your credit available at all times. If you have a $100 limit then you would have to have $70 available on the due date.

But is it on the due date or at all times is my question?

 

[Formerly Black Trash]

Your utilization is calculated on your statement date which is probably around 5 days after your due date

Ok thats what I wanted to know

Thank you

 

[Ghostface Trillah]

But is it on the due date or at all times is my question?

Due date. Everything is calculated on the due date

 

[Formerly Black Trash]

Due date. Everything is calculated on the due date

Thx

 

[SpottieOttieD]

If you asking about your credit rating, it's based on utilization whenever they run your score. If your due date is the 30th and they run your score on the 15th, it doesn't matter if you plan on paying off your credit card on the 20th, they're gonna see what your limit is and what your current utilization at that time is.

 

[Formerly Black Trash]

If you asking about your credit rating, it's based on utilization whenever they run your score. If your due date is the 30th and they run your score on the 15th, it doesn't matter if you plan on paying off your credit card on the 20th, they're gonna see what your limit is and what your current utilization at that time is.

That doesn't make sense but I believe you

 

[Red]

You don't have to keep it below 70% utilisation. That figure is recommended in an attempt to ensure you don't look credit thirsty when applying for more lines of credit. Balance transfers and money transfers usually have a 95% of credit limit imposed by the card issuer.

Utilisation rate (basically just your current usage) is reported to the credit report agencies (experian, etc) a couple of months behind (at least where I'm from) to also allow for payments made or missed to also be reported.

 

[Fat Fred Jones]

Due date. Everything is calculated on the due date

Utilization is based off most recent reported balances on the statement/closing dates. I have 7 cards with most of the major banks and they all report the statement balance. The due date is usually a few days before the statement closing date. Your credit report is updated with all three bureaus after every closing date. Some bureaus lag behind others by a few days. Also if you have other credit accounts like mortgages and car notes, these are also updated with the bureaus after each closing date. Your credit file is constantly being updated.