What is the difference between a due date and a statement closing date?
There are two dates to keep track of when paying your credit cards: the statement closing date and the payment due date. Both are important for saving money, avoiding charges and keeping a healthy credit score.
Let’s look at the differences.
What is a statement closing date?
A credit card statement closing date will normally be the last Monday of your normal billing cycle. Any purchases or charges made after the statement closing date will appear on the next month’s statement. This is also the date from which your credit card issuer will calculate interest charges. Additional purchases or charges after the closing date will be accumulated and used for the following month’s monthly payment and interest charges .
For most credit cards, you have at least 21 to 25 days between the statement closing date and the due date for your payment.
When paying your credit card bill in advance allows you to pay it off early, this helps to boost your credit score, another reward for having good ratings. Also steer clear of late payment fees as you prioritize your payments, saving you both money and interest. When you do so in full, you spend less on interest.
So along with your statement closing date, your payment due date is mighty important too.
What is a payment due date?
Your credit card’s payment due date is the deadline you should meet to make your payment on time without incurring penalties or late fees. You can find this deadline on your monthly statement, alongside your account balance and minimum payment value. This is the last day you can make a minimum payment prior to incurring late fees.
Your payment due date follows this same calendar date. For instance, if your due date is April 25th, then your next due date will be May 25th and every 25th day of the month going forward.
If you are having problems paying your credit card bill on time, ask your credit card company if you can change the date your payment is received. Your billing cycle will shift so that your new statement date falls closer to the beginning of the month.
What are other important credit card dates?
The annual late fee due date refers to an annual cost generally charged to keep a card open. Annual late fee acquired may vary with respect to card issuers, but it typically corresponds to your account anniversary.
Introductory offer date is the date upon which some new offers and prices are no longer available. Sometimes credit scores come with introductory amenities and suggests that end after a particular time. Balance transfer offers and introductory interest rates are some examples in which introductory prices can be found. It’s essential to keep your introductory offer time in mind, particularly if you choose to use a balance transfer offer or a low-interest rate.
Credit card expiration date is printed on most credit cards, not the date your account will be closed; it’s just the expiration of your card. Most types of credit card issuers will send you a new card before your expiration date, and sometimes your card number will change. But some issuers do not offer a new card prior to your expiration date. After you have received the new card, destroy your old card and activate the new one.
Transaction dates are the date that a purchase or charge was made using your card. It is different from the posting date, which denotes the day any transaction is added to your account and remains two to three days behind that date.