Does paying for my balance before my cc company produces a statement reset my balance?

Say I have a limit of $5,000 and use $3,000 and my cycle ends around the 27~ end of month. I pay on the 21st a total of $3,000. The next day, 22nd, my online access tells me I have $5,000/$5,000.

Is that just the system saying I have owed everything and I don't actually have another $5,000 to spend, but actually only $2,000 left? Or can I spend another $4,000 without going over the limit, and pay them again during the end of the cycle?

Credit Card with: RBC Canada

1 Answer 1


Assuming that you don't owe interest, late fees or other fees, then when you make a payment to the credit card company the balance will go down and the available credit will go up.

In your example paying the 3,000 you owe will return your balance to zero and your available credit will be 100%. This is exactly how your normal payment works. Even people that say they don't carry a balance technically do because in a typical scenario they continue to use the card between the close of the billing cycle and the due date.

This technique, paying what you owe early is useful in several scenarios:

  • To clear the way for a big purchase, or t0 clear the account after a big purchase.
  • to get the utilization number down before a credit check.
  • to pre-load the account with money.

As far as the card is concerned you still have 5,000 available to spend.

  • Indeed, when I had a card offer 10% back for a limited time, I charged over $50,000 in less than 3 months on this card with a $10,000 credit line using this method. Commented Dec 19, 2014 at 16:33
  • @JoeTaxpayer: Yep. The first time a company tried to bribe me into using "credit card checks" (which I detest) by offering that kind of rebate, I promptly used them for the largest legitimate expenses that I was going to pay anyway, within the limits of my ability to pay them off immediately, and pocketed the cash. Of course what the banks were hoping to do was to use these to convince consumers to borrow more, but enough of us took the money and ran that they've mostly stopped offering that large an incentive.
    – keshlam
    Commented Dec 19, 2014 at 23:13
  • By the way, some banks will let you see the current credit-card balance almost in realtime through their online banking tools, which may make managing the cards a bit easier... you can pay when it's convenient for you rather than necessarily waiting for the statement to arrive.
    – keshlam
    Commented Dec 19, 2014 at 23:15

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