A statement closing date is usually the last day of your billing cycle, while a payment due date is the deadline for paying to avoid interest charges.
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.
A credit card statement closing date is typically the last day of your monthly billing cycle. Purchases made after your statement closing date will be reflected on the next month's statement.
This is also the date on which your credit card issuer calculates interest charges. Any purchases or charges after the date will be used to calculate the next month’s payment and interest charges.
For most credit cards, you have a grace period of 21 to 25 days between the statement closing date and the day your payment is due.
While we’re on it: did you know paying your credit card bill before its due date can lower your credit utilization ratio, a key factor in boosting your credit score? You’ll avoid late fees too, another boon for your credit score, and when you pay your balance in full, you’ll save money on interest charges.
So along with your statement closing date, your payment due date is mighty important too.
A credit card payment due date is your deadline for making an on-time payment. You’ll find your payment due date on your statement each month, along with your balance and your minimum payment. This is the last day to make a minimum payment before incurring late fees or penalties.
It always falls on the same calendar date. For example, if your payment due date is April 25th, your next payment due date will be May 25th – and every 25th day of the month going forward.
Here’s a pro tip: ask your credit card issuer to change your due date if it falls at a bad time of the month. For example, if you usually have more cash at the start of the month, consider shifting to an earlier due date. Your statement cycle will shift accordingly.
Get a personal Bright Plan tailored for you.
Bright makes card payments for you with every date in mind. Bright's MoneyScience™, our new patented system of 34 algorithms, studies your debt, looking at APRs, balances, interest charges and due dates, and makes smart payments for you, always on time.
It’s easier than juggling due dates and doing the math on payments month after month. Bright does all that for you, while working to lower your utilization ratio and optimizing for lower interest charges.
If you don't have it yet, download the Bright app from the App Store or Google Play. Connect your checking account and credit cards, set a few goals, and let Bright get to work.
The best day of the month to pay your credit cards
4 dates to look for beyond the due date on your credit cards
With a postgraduate degree in commerce from The University of Sydney, Pranay has his finger on the pulse of the finance industry. Breaking down complex financial concepts is his forte.