Current Events > I got my first credit card and I've been using it, but my statement says $0 due

(+) Yeah! (+)

I got it at the beginning of December and I've been using it for purchases, and my account shows I have a balance of ~$175 that I've rung up on it, but my statement says I have $0.00 due by January 5th.

So do I just pay nothing? What happens to that $175? Does it add to the balance next month? If I pay it off now, even though it says I technically don't have to pay anything, will that money vanish into thin air or contribute to my next one?
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If you overpay, the amount will be credited towards your next bill.
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it'll most likely be due on feb. 5th
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It'll be on your next statement. You can pay if you want to but there's no need.
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weapon_d00d816 posted...

I got it at the beginning of December and I've been using it for purchases, and my account shows I have a balance of ~$175 that I've rung up on it, but my statement says I have $0.00 due by January 5th.

So do I just pay nothing? What happens to that $175? Does it add to the balance next month? If I pay it off now, even though it says I technically don't have to pay anything, will that money vanish into thin air or contribute to my next one?

You simply started using the card after the first cycle was over, so everything you charged last month will be on next month's bill. You can pay it now if you want to and it will show up as a credit towards your next bill.
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It should've been processed and have an option to pay for it.

The statement does not update automatically, it updates once a month.

Basically, you've got the statement (once a month "snapshot" of your activity, plus explains the minimum you owe, how long it will take to pay off the card if you make just the minimum payment, and your standing balance as of the statement).

Then you've got the balance - this will almost always be at 0 or at a negative number based on if you spent money through it. It is possible to have a "positive" balance, either if you overpay on it or if the lender gives you credit directly to your card (this happened to me once, it was the Sears card).

You also have to understand that the balance does not necessarily update instantly, or even within a couple days. Typically it gets updated when the charges are cleared. Sometimes the charges get posted the same day, sometimes they don't... SO... My point in saying that is that the most accurate/up-to-date number (if you're using the card frequently) tends to be the actual available credit you have. You gotta do the math, subtract it from the total credit to figure out the difference and what the actual balance is at that time, but that's the most reliable way imo to figure out how much you owe (or keep your receipts).

OR

Just wait until the statement comes out and pay the card off in full and don't worry about it.
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the way statements work are like this.

they give you a time frame. for simplicities sake, let's say 1-30th. during that time you make purchases. say, 500 dollars.

after the 30th, they will send you a bill, or a statement. you owe us 500 dollars for spending between the 1-30th. you have until the 25th to pay it.".

meanwhile, you're free to spend more money, but they will only seek that 500 dollars before hand.

so say you don't pay right away. you spend 250 dollars. on their website, or your own tracking, youll think "i owe them 750 dollars". which is true, but since they haven't sent you a statement yet, they're only looking for that 500 dollars. so you pay the 500 dollars. you get a new statement after the next 30th, for only 250 dollars.

in your case TC, the statement probably hit due to their own internal calendar of how they make statement dates before you made any purchases, or before they cleared. so it's telling the truth. they're only going to want that $0 on whatever due date they listed.

HOWEVER
make it a good habit to pay credit cards on your own schedule. some like to do it weekly, i do it monthly. so you can have a "negative statement" ie, you're prepaying. they're not going to get mad at you for giving them more money than you need to lol. well. i mean, granted its not tens of thousands of dollars.. but i dont think you're doing that.

just be careful a statement doesnt hit, and you dont pay it back in time cuz of your own schedule.

AND DONT PAY INTEREST!

WELCOME TO THE WILD WORLD OF CREDIT CARDS!

what credit card is it? does it earn rewards?
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So basically I had spent $0 before Dec. 5 so I don't have to pay anything on Jan. 5
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_BIueMonk posted...

make it a good habit to pay credit cards on your own schedule. some like to do it weekly, i do it monthly. so you can have a "negative statement" ie, you're prepaying. they're not going to get mad at you for giving them more money than you need to lol. well. i mean, granted its not tens of thousands of dollars.. but i dont think you're doing that.

I mean, you're not really giving them extra money, it's still credit you use. It's just maybe a waste if you're trying to micromanage every single dollar in your budget otherwise it really doesn't make a difference if you prepay or overpay.
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weapon_d00d816 posted...

So basically I had spent $0 before Dec. 5 so I don't have to pay anything on Jan. 5

That seems to be the case. If they are saying you owe $0.00, then you owe $0.00 by __ date.

However, be aware that they won't say you need to pay what you spent. They will calculate a minimum payment due based off of your spending and available credit line.

For example, let's say your credit line is $5,000. You just continue to spend, and only pay the minimum every month, say $75 they charge. Eventually, your credit card will be maxed out. You have no available credit. And any further payments will essentially go to interest and it will take you 5+ years paying the minimum payment to pay the card off (without ever swiping it again)

So you should make payments based off of what you actually spent versus what they say the minimum you owe is.
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So, essentially, when they come out next month and say "Minimum Payment Due $____" --- you should be paying off everything you spent. If you don't, interest will be charged.

Interest isn't such a bad thing in the short term, though. Maybe you used the card for a big purchase you know you will need several months to pay off.

It becomes really costly in the long term when you're routinely using the credit card to fund a lifestyle you can't afford (e.g. spending $500 a month on the card but only being able to pay $100 a month)---then getting another credit card and rinse and repeat. Don't do that.
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