What is the difference between a due date and a statement closing date?
The statement closing date is the last day of a billing cycle, while the due date is the deadline to avoid interest charges.
When paying your credit cards, you must keep track of two dates: the statement closure date and the payment due date. Both are necessary for saving money, avoiding fees, and maintaining a good credit score.
What is a statement closing date?
The last day of your monthly billing cycle is usually the closure date of your credit card statement. Purchases made after the closing date of your statement will appear on the next month’s statement.
The date on which your credit card company calculates interest charges is also this date. Any purchases or charges made after the due date will be utilized to determine the payment and interest for the following month.
Between the date your statement closes and the day your payment is due, most credit cards provide you with a grace period of 21 to 25 days.
While we’re on the subject, did you know that paying your credit card payment before the due date can help you improve your credit score by lowering your credit utilization ratio? You’ll also avoid late fines, which is good for your credit score, and you’ll save money on interest rates if you pay your bill in full.
Your payment due date is just as crucial as the closing date of your statement.
What is the payment due date?
A credit card payment due date is the date by which you must make a timely payment. Each month, your statement will include your payment due date, as well as your balance and minimum payment. The deadline for making a minimum payment before incurring late fees or penalties is today.
It always takes place on the same day of the year. If your payment is due on April 25th, for example, your next payment is due on May 25th, and so on for the rest of the month.
Here’s a pro tip: if your credit card due date falls on a terrible day of the month, ask your credit card company to modify it.