I have a Credit Card with a 32k credit limit. On the 16th i receive my statement balance which is around $1.5K and throughout the days i am able to pay it off. I currently have an available balance of 31,401.00 which means i have to pay $599 to get back to my 32k available amount. Do i have the pay the 1.5K again on Jan 5th even though im paying it off in a month and thats what the credit bureau has reported i owe?
just confused because sometimes i see that as an option to pay the “remaining balance” and stuff. i’ve had this credit card for years but i never understood how that worked which is stupid since i’ve been able to build it so high already and not overspend beyond my means.
please explain it like i’m 5 because that’s how it feels when i try to understand this hahah
Clarification on Available credit and statement balance
byu/Express_Command272 inCreditCards
Posted by Express_Command272
2 Comments
Making multiple payments is confusing you. Credit cards are like any other monthly bill. You use them throughout the month, you receive a statement telling you how much you owe, then you pay that amount by the due date listed. You must pay $1.5k between December 16th and January 5th in order to avoid interest. It sounds like you paid part of that, so you still owe $599. Pay $599 before the 5th.
Going forward I recommend paying your statement balance once per month instead of breaking it up into multiple payments. That’s confusing you. You could set up auto pay and never have to think about this again. You only pay your water bill once a month, right? Why are you overcomplicating your credit card payment?
Credit card bills work just like utility bills: There’s a month-long statement period, and after that period ends you have 3 to 4 weeks to pay for what you spent during that time. Anything you spend after the statement period ends (including that 3 to 4-week gap between your statement closing and your due date) goes on next month’s statement.
So just let your statement post and pay the statement balance by the due date each month. This will avoid all the confusion you’re having and it’s the best way to pay your credit cards anyway.