I can't back up phone or update. Says because of storage. Bought more iCloud storage and its not show up?

I am unable to update or backup my phone. Says because of storage. I bought more storage and its not showing up. But iCloud hasn't been used at all previously. Why not?

Is the lack of storage space on your iphone or in icloud?
Icloud storage has nothing to do with the storage on your iphone.

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