Comments on: Closing Date and Due Dates Can Impact Your Credit Score – Episode #8 http://www.videocreditscore.com/closing-date-and-due-dates-can-impact-your-credit-score/ Tue, 24 Jan 2012 18:29:53 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: VideoCreditScore-Andy http://www.videocreditscore.com/closing-date-and-due-dates-can-impact-your-credit-score/#comment-1586 VideoCreditScore-Andy Fri, 19 Aug 2011 23:45:46 +0000 http://videocreditscore.com/test2/?p=30#comment-1586 Arggh, my reply got erased. User error on my part. I will work up an example but the easiest way to think of this is as a 30 day interest free loan. Due date is the end of the 30 days. any payment before the 30 days are up is free of interest. But i will work up an example. Arggh, my reply got erased. User error on my part. I will work up an example but the easiest way to think of this is as a 30 day interest free loan. Due date is the end of the 30 days. any payment before the 30 days are up is free of interest. But i will work up an example.

]]> By: VideoCreditScore-Andy http://www.videocreditscore.com/closing-date-and-due-dates-can-impact-your-credit-score/#comment-1583 VideoCreditScore-Andy Fri, 19 Aug 2011 23:30:14 +0000 http://videocreditscore.com/test2/?p=30#comment-1583 Thanks for the kudos. I'll workup an example in the next few days. But to summarize, If you pay before the due date, no interest accrues. That's what makes credit cards a 30 day interest free loan. They should lose money for the banks, but people extend that, so it costs more. The statement date matters less. It's just the marker date to show you what you owe. If you pay before the 30 days are up, then you are just shortening the 30 day free loan they are giving you. Thanks for the kudos. I’ll workup an example in the next few days. But to summarize, If you pay before the due date, no interest accrues. That’s what makes credit cards a 30 day interest free loan. They should lose money for the banks, but people extend that, so it costs more. The statement date matters less. It’s just the marker date to show you what you owe. If you pay before the 30 days are up, then you are just shortening the 30 day free loan they are giving you.

]]> By: Martin http://www.videocreditscore.com/closing-date-and-due-dates-can-impact-your-credit-score/#comment-1577 Martin Wed, 03 Aug 2011 22:34:40 +0000 http://videocreditscore.com/test2/?p=30#comment-1577 Hey Andy, I'm an expat in the US and found your advice invaluable! Thanks for all the effort you put into this site to make this such a high quality source for credit score information. One question, and I apologize if it may sound silly: On what do I actually pay interest? in the example above, the closing date is the 25th. So if I pay the full balance on the 21st, the balance that is reported is 195.35. Let's say my due date is the 5th of the next month. Since I make payments on the 21st, I would have to pay interest on that balance, correct? But if I pay up the entire balance that had accumulated until the 5th on that day, I would pay no interest and have a lower balance to pay up on the 21st day of that month... correct? In general, I think it could be very helpful to make an example about how credit card companies calculate interest that needs to be paid, in particular maybe an example with bi monthly payments as you suggest in other posts. Thanks a million! Martin Thanks Hey Andy,

I’m an expat in the US and found your advice invaluable! Thanks for all the effort you put into this site to make this such a high quality source for credit score information.

One question, and I apologize if it may sound silly: On what do I actually pay interest?

in the example above, the closing date is the 25th. So if I pay the full balance on the 21st, the balance that is reported is 195.35. Let’s say my due date is the 5th of the next month. Since I make payments on the 21st, I would have to pay interest on that balance, correct? But if I pay up the entire balance that had accumulated until the 5th on that day, I would pay no interest and have a lower balance to pay up on the 21st day of that month… correct?

In general, I think it could be very helpful to make an example about how credit card companies calculate interest that needs to be paid, in particular maybe an example with bi monthly payments as you suggest in other posts.

Thanks a million!
Martin

Thanks

]]> By: VideoCreditScore-Andy http://www.videocreditscore.com/closing-date-and-due-dates-can-impact-your-credit-score/#comment-1248 VideoCreditScore-Andy Sat, 31 Jul 2010 05:34:01 +0000 http://videocreditscore.com/test2/?p=30#comment-1248 This happens and it's happening more frequently lately. Just keep paying your bills on time and keep balances low and your score should be fine. Often times people see those 5 points return in a few months. This happens and it’s happening more frequently lately. Just keep paying your bills on time and keep balances low and your score should be fine. Often times people see those 5 points return in a few months.

]]> By: Michael Zamora http://www.videocreditscore.com/closing-date-and-due-dates-can-impact-your-credit-score/#comment-1245 Michael Zamora Thu, 29 Jul 2010 01:16:51 +0000 http://videocreditscore.com/test2/?p=30#comment-1245 I have been recently paying down on credit cards and raising my fico score but yesterday and today two credit accounts were closed by the grantor and they were zero balances. This caused my fico score to change by 5points . Is there anything I can do . What can I do to raise it back up. I have been recently paying down on credit cards and raising my fico score but yesterday and today two credit accounts were closed by the grantor and they were zero balances. This caused my fico score to change by 5points . Is there anything I can do . What can I do to raise it back up.

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