Date of the final statement vs that of Payment Definitions of the Due Date

The Differences Between the Two Most Important Dates for Credit Cards

If you have a credit card, there are two dates that are extremely crucial for you to keep in mind: the day that your statement will close and the date that your payment is due. Find out how these two dates differ from one another, the reasons why each one is important, and the best way to remain on top of your credit card payments.

Key Takeaways

The day that you get your credit card statement is the statement closing date for your account. In most cases, you have 21 days from the day that your statement was issued to the due date of your credit card bill. Your payment due date is your deadline for making an on-time payment. If you do not pay off the total amount of your balance by the date that your payment is due, you will be required to begin paying interest payments.

Statement Closing Date vs. Payment Due Date

It is simple to get the date of your statement's closing and the date on which your payment is due mixed up. In a nutshell, the closing date of your statement refers to the day that marks the end of your billing period. If you want to keep from having to pay interest on your credit card balance, you need to make sure that you have paid the bill in full and before the due date, which is known as the payment due date. Date of Submission of the Statement Payment Due Date

The very last day of this month's billing cycle
The due date for your payment to the issuer of the document.
Typically takes place 20–25 days before the date on which payment is due.
To avoid being charged interest, the outstanding balance must be paid in full before the specified date.

Date of Submission of the Statement

When we talk about the "statement closing date," we are referring to the very last day of the billing cycle. This date will often fall between 20 and 25 days before the due date of your payment. You will be able to make preparations to pay your credit card account on the closing date of your statement since the issuer will do the following: Determine the amount of your minimum payment as well as any monthly interest charges that are due. If you do not participate in paperless billing, your credit card statement, also known as your bill, will either be posted to your online account or sent to you.

Payment Due Date

The date on which your payment is due is the date by which your issuer must receive payment in full from you if you do not wish to be charged any interest. You should be able to expect to get a statement for your credit card on the closing date of your billing cycle. This statement should detail your total balance, the amount of your minimum payment, and the date on which your minimum payment is due. Your minimum payment is the portion of your outstanding debt that must be paid off before you are considered to be in good standing with the card issuer. If you make a payment that is less than the amount that you owe, you will be subject to interest charges on the remaining balance, unless you are currently in a period of promotional APR.

Allowances for Major Issuers during Grace Periods

Your grace period refers to the time period between the date that your statement was closed and the date that your payment was due. You are given a grace period by credit card providers so that you have time to pay off your debt in full before any interest charges become effective on your account. Even though a grace period is not required by law, many credit card issuers still choose to provide their customers with one. If they do, the credit card issuers in question are legally required to send their customers their credit card statements at least twenty days before the day on which the payment is due. Confirm with the company that issued your credit card whether or not they offer a grace period and, if so, how long it is. This will help you prevent any confusion.

When is the most convenient time to make a payment?

When it comes to paying off your monthly credit card statement, the optimum time to do so is either before or on the date that the payment is due. Not only does paying your credit card bill late result in more expensive interest payments, but it also has the potential to lower your credit score. If you pay off your credit card balance in full and on time each month, you can assist reduce the percentage of your available credit that you are using (which is good for your credit score). You'll also avoid late fees. If you still have a balance from previous billing cycles carried over onto your credit card, making your payment early could save you money. If you pay off that sum as quickly as possible, you will be able to stop paying interest much more quickly. To make sure you never miss a payment, set up recurring payments for your entire debt or only the minimum payment required on your due date. You should check to see that there is sufficient money in the bank account you link to your bill payment at all times.

Questions That Are Typically Asked (FAQs)

Should I keep my credit card open with a low balance so that I can improve my credit score?

Your credit score will not improve if you carry a balance from month to month, but paying off your balance in full each month can increase your score.

Should I make the payment on my credit card before the due date, or should I wait until the last minute?

If you carry a balance from month to month on your credit card, making your payment ahead of schedule can help you pay less interest overall. The amount of your credit card balance that your credit card company discloses to the credit reporting agencies may also decrease as a result of this.