Financial Literacy

Statement Dates Versus Due Dates in Credit Scoring

Credit utilization is calculated based on the balance reported to credit bureaus on your statement closing date, not your payment due date. If you pay your balance in full after the statement closing date, the credit bureaus may have already recorded a high utilization ratio for that month, which can temporarily lower your credit score. To maintain a lower utilization profile, you can make an early payment before the statement closing date to ensure the reported balance is lower.

Source: Consumer Financial Protection Bureau