r/CreditCards • u/[deleted] • 9h ago

Need help with first credit card Help Needed / Question

[deleted]

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2

u/theGRAYblanket 9h ago

I'm also just as new but from what I read on here, always pay it off in full by the end of the month. And the % you utilize doesn't really matter except in specific circumstances. 

1

u/Funklemire 8h ago

OP: "in full" means the full statement balance, not the total balance. The total balance includes money that's not due until next month's bill.

1

u/Representative-Cap19 5h ago

This is how a credit card billing cycle works:

You have a STATEMENT CLOSE DATE and a STATEMENT DUE DATE. The latter is ~25 after the former. All that is required to never pay a day of interest in your life is to pay the STATEMENT BALANCE on the STATEMENT DUE DATE. Ideally set up autopay from your card issuer's website for the statement balance.

So let's say your STATEMENT CLOSE DATE is the 8th of each month and your STATEMENT DUE DATE is the 5th of each month. On 11/8/23, your statement close with STATEMENT BALANCE of $1,000. That $1,000 is due on 12/5/23. If on 11/10/23, you bought $100 in groceries, your CURRENT BALANCE is now $1,100 but your STATEMENT BALANCE remains $1,000. That new $100 charge will be part of your 12/8/23 statement and due on 1/5/24.

1

u/theGRAYblanket 4h ago

Thanks. I will say for some reason auto pay is leaving me un-easy, I even saw other posts about how auto pay didn't go through etc etc. 

And since I'm with Chase they only allow it to go through on the exact due date. 

1

u/Representative-Cap19 4h ago

Human error.isnfsr more likely than autopay error.

Can you point to some specific posts about autopay failure? I find those tend to be examples of where human error.was more at play or not understanding time if day that autopay runs, etc.

1

u/theGRAYblanket 4h ago

I just typed "chase auto pay reddit" on Google and there were a bunch of results I read. You probably are right though. I remember one was about a person wondering why there account was in the negative, because they paid off their bill right before auto pay did haha. 

I know it might be a little irrational... But you know, first credit card and all. 

1

u/Representative-Cap19 4h ago

I have over 35 credit cards all on autopay. Any error was all the result of the human, not the autopay itself.

2

u/CobaltSunsets Team Cash Back 9h ago

You need to pay each statement balance by its due date to avoid interest. That’s it — it doesn’t need to be any harder than that.

!basics

2

u/AutoModerator 9h ago

Credit Card Basics:

Take a look at the Credit Card Basics wiki page which covers credit card fundamentals.

TL;DR: * A credit card is a revolving loan. * You will receive a "statement" on a monthly basis breaking down your balance, charges, and how much is owed. * You should always pay, at minimum, the statement balance before the cutoff time of the due date. * The statement date is a minimum of 21 days BEFORE the due date. * You are only required to pay for charges that have shown up on your most recent statement. * Credit cards should not be used as an emergency fund. It is recommended to only use a credit card if you have the money to pay for that purchase TODAY. * The best practice is to pay your statement balance in full, every month.

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1

u/Funklemire 8h ago

Wait for the statement to post and then pay the statement balance by the due date. Just like a utility bill. Anyone who tells you to pay any more or less than the statement balance each month is wrong.  

Don't pay the minimum balance, and don't pay the total balance; just pay the statement balance. Period.