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Is it better to pay in full before or after statement cuts?


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If you're talking about credit cards...don't worry about it. If you wait until you receive the statement, and they report "balance due" when they send out the statement (not all do), you'll get into the world od "utilization".

The only credit score utilization affects significantly is the sucker score...the one that gets you more credit cards. Don't worry about it.

Use your CCs so you don't have to carry cash, or to shop online...pay it off immediately if you can.

Read my signature...

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If you pay before the statement cuts then your statement balance will be zero and that is what will report to the CRA's unless you charge it up again.

WTC is right about managing your debt and not your score. But if you are looking to maximize your score then make sure all your tradelines report zero balance except for one and that balance should be 9% or less of your credit limit. Unless you are going for a mortgage: then have zero report for all of your tradelines.

BTW, in order for this to work, you need to know the reporting dates of each of your tradelines.

Edited by Denita
typos!
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It makes a difference only if you charge more than 9% of your outstanding credit line. The figures used to calculate your FICO score use the reported balances. If you charge up your cc every month and pay in full after the statement date your account looks like you carry a balance month to month - even if you pay in full. If you pay in full before the statement drops then it looks like you don't carry a balance so your utilization is naturally zero.

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