re: Credit Card Rewards and Points Discussion

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Don't know why people have that idea but a lot do

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Because people don't familiarize themselves with the different terminologies and dates. I remember you saying your dad is a successful businessman, so I am going to give hm the benefit of the doubt here and assume you misunderstood him

Keep in mind:

Statement End Date: This is the date your statement closes for the month. More often than not, banks report balance owed (to credit bureaus) as of the end of this day.

Grace Period: This is the time between your statement end date and your due date (See below).

Due Date: Typically 23-27 days after your statement end date. This is the time the bank gives you to pay off your outstanding balance owed on the account, w/o interest.

If you only have 1 card, it is advisable that you carry a balance (under 3% of total CL on that card), as of the end of business on the statement end date. But pay this balance off before your due date, if not on the day after statement closing date.

I think this is what confuses most people about "maintaining a balance" . It is good to show a little bit of a balance on 1-2 accounts every month and pay it off right after so that you show yourself as a dependable borrower. Helps your credit score. But in no way should you "maintain" that balance past your due date.

If you make minimum payments before your due date, your credit score isn't hurt. But you will still pay an interest on the balance owed. If you don't even make the minimum payment, that counts as a missed payment for which you will not only owe a late fee to the bank but also hurt your credit score.

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LSUAfro

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Absolutely. No beating that.