Paying A Credit Card Bill (I Wish I Knew THIS)

In this video we’re talking about your credit card bill to answer some important questions like "when to pay your credit card bill to avoid interest?" We’ll be going over 12 key terms on your credit card statement that everyone needs to know so that you can pay your credit card bill the right way to not only avoid interest, but also increase your credit score!

To summarize this video, the best time to pay your credit card bill is after the statement closing date but before the payment due date. That period of time is called the grace period, and when we make a credit card payment we should be paying off the full statement balance as well. This video will explain that concept in much more detail as I go through one of my real credit card bills.

Overall, using your credit cards the right way is not too difficult once you understand the terms in this video. By learning this info, I’ve been able to always pay my credit card bill on all of my 15 credit cards in full every single month. I’ve never paid a dollar in interest and my goal is for everyone out that watches this video to do the same!

CHECK OUT SOME OF MY OTHER VIDEOS:

The content in this video is accurate as of the posting date. Some of the offers mentioned may no longer be available.

Daniel Braun is not a financial advisor. This video is for entertainment and educational purposes only, it is not financial advice.

[tamarar.]

Good grief lol 😂! That was a lot. Basically pay your full statement balance by the due date to avoid interest. Im homeschooling my daughter and I pray she gets this with plenty of practice test BEFORE real life happens lol 😂. I don’t charge anything I don’t already have money for, so I’ve never worried about the due date. I use my cards for rewards by paying bills. Once I get my reward money, I stuff my savings envelopes. Im saving this video for my daughter.

[ZRFiR]

As someone who just got their first credit card, thank you for breaking this all down into a way that makes sense!

[sherrypace]

I’m a HUD certified housing counselor and have been teaching this stuff to folks for 25yrs. Not a lot of folks know about housing counseling (and subsequently credit & budget counseling) so I’m glad to see this content on YouTube. It was succinct and spot on. I’ll be sharing your channel with clients…One comment I will make about zero interest offers - if it’s for a large amount, like an appliance, leaving the money you have already saved in an interest bearing account and using someone else’s money interest free, is a smart way to go. BUT only if you are disciplined. Make sure that the payments pay the balance off in full before the end of the offer or ALL the interest will be charged retroactively! Thanks for this great content.

[ItsMeCJ]

Understanding the meaning of statement opening, closing, and payment due dates, and active/current balance vs statement balance is definitely extremely important for beginners to learn right away. Who would have thought that a simple credit card bill is not so simple after all. Great video Daniel and thanks for clearing the air on the big elephant myth in the room 👍🏾.

[ron]

Excellent tips as always, Daniel! Great video and I love my CHASE Freedom Flex card! 😊

[patrickbennett]

Yes. I do like to barrow money and pay it right before the statement balance to avoid interest. Then take that money back out again right after the statement day.

[slightgainz]

U earned a new sub Man U explained this so perfectly bro I’ve watched a couple vids that left me confused but yea man you got this great job

[createandimprove]

Thank you so much!!! You have answered my question that I was not being able to get clarity from the credit card company customer service.

[lisaruiz]

THANK YOU for explaining the Grace Period. You just confirmed what I've been TRYING to figure out for MONTHS/YEARS! THANK YOU, THANK YOU! And, yes, I subscribed.

[SpencerJohnsonOfficial]

Wouldn't it be nice if credit card bills were simple to understand?? I guess it's just too difficult for the big banks to help us NOT pay interest... jokes aside, this is super important to understand if you're new to the credit card game. And even if you've had credit cards for a long time, understanding your bill and all of its intricacies could really help your score reach new levels. Great job on this one Daniel!

[mikesawyer]

My best best advice, around credit cards is make 2 payments on your credit card each month. Pay it off on the first of the month and then pay it off again on the 15th of the month. Assuming your card is actively used you'll never pay a late charge, and you will never pay interest. And you might also never forget to pay a card for the month. I started doing this 20 years ago. Best thing I ever learned.

[synergy]

Daniel I appreciate your the info and enjoy your content 👍🏽

[AllThruChrist]

Best breakdown/understanding providing piece I've ever come across, as it pertains, to paying by statement bal-closing:.Thanks.

[ES-ufzp]

This information is severely needed for young adults, and even older adults. This type of real life info should be taught in school to educate students of what this looks like in real life. I was never taught in school so I had to learn by getting into, and working out of, overwhelming credit card debt. Great job on the video.

[MaeSekou]

Thank you so much for these videos man.

[celieboo]

Great explanations. It took me like 20 years to figure credit card bills out. I put two reminders on my calendar. One is a week before the payment due date and one is 3 days before.

[akashvyas]

this was very informative and helpful! i love how you chose your words very carefully when explaining that made it 10 times easier to understand. you're awesome

[patrickeppler]

Great video. All great advice. During the GFC 2008 time frame credit card companies where scrambling to shed excess exposure. I had a few credit cards closed during that time as I had not used them at all in several months or years even. The cards I had balances on were not touched but did notice on some the credit limits were reduced. I mention this as were are possible moving into a recession, especially if interest rates stay elevated and we could see a repeat of the same.

[shayc.]

You're explanation was magnificent. Thank you! 👍

[nancysalgado]

Thank you for this video and for explaining everything in an easy way. 👍🏼