Credit Card Due Date Vs Closing Date | Everything You Need To Know

If you are planning on being a responsible credit card holder - you need to know the difference between a closing date and payment due dates. Understanding the difference between these two important credit card dates will help you to plan your spending and repayments properly and ensure that you pay your credit card bills on time each month.

If you miscalculate or misunderstand the difference between these two dates, this could result in having to pay an extra month of interest rates, affect your credit utilization ratio, and negatively impact your credit score and credit report.

Below we will talk you through the details of determining your credit card statement closing date and making sure that you always make at least your minimum payment on time.

What is Your Credit Card Closing Date?

Your closing date is the end of your billing cycle. This usually covers a period of between 28 to 31 days and may vary a little each month. (However, the variation cannot be more than four days, as detailed by the CFPB - Consumer Financial Protection Bureau.)

Using this closing date, your credit provider will decide which of your current purchases fall under your current monthly balance and which fall under the next month. if you have made purchases on your card after the closing date, these will be put forward to your next month's statement.

The purchases you have made before that date are calculated with your total balance and your minimum payment this is due.

This closing date will also be used by credit card issuers to determine the interest charges on your account. Issuers will usually allow a grace period for purchases that have been made after your closing date before your payment due date. So, you may not have to pay interest on your payments during this slim period.

You should however note that a grace period is not a legal requirement for providers and different organizations will have different practices. Always read your terms and conditions properly to make sure you have a complete understanding of the particulars of your card.

What is My Credit Card Payment Due Date?

Your payment due date is also a very important date to get a handle on. If you make your payments for your monthly bill by 5 pm on this date, you will have done so on time. If you pay your bill after 5 pm on this date, then your payment is considered late and past due.

Whereas the closing date can vary by a few days, your payment due date will be the same for each billing cycle. For example, if your payment due date is 10th June, it will be 10th July next month, and so on.

This constituency makes it easier for you to make sure you are keeping up to date with your minimum payment or repaying the full amount.

Ideally, you will be making your payments on time each month. But if you fail to do so, a card issuer generally will not send a report to credit bureaus until your payment is between 30 and 60 days past due.

However, you may have to deal with late fees and associated charges if you fail to make your payment on time. So, you should make sure you are aware of the possible penalties before letting your payments slip on your credit card account.

How Does my Credit Card Closing Date Affect My Credit Score?

Your closing date is an important date to know because this is the date that credit card companies will usually report your financial data to the three main credit bureaus - Equifax, Experian, and TransUnion.

This report will affect your credit utilization ratio and credit score - both of which affect the amount of credit you can successfully apply for in the future.

If you make a large purchase on your card a few days before your closing date and don't repay it for a week or so, your credit utilization score will be negatively affected. However, if you wait until after your closing date, you will have a lot more time to repay the amount before your new report is sent to the credit bureaus.

Therefore, it is essential that you know your card closing date and start planning your bigger purchases accordingly.

How Can You Find the Closing Date For Your Credit Card?

Your monthly credit card bill will help you to determine your statement closing date each month. At the top of your bill, you should be able to find details of your important credit card dates.

Your credit card closing date may be displayed as your "Opening/Closing dates" and a date range will follow. Count the number of days within this range and then apply this number going forward to determine your next closing date.

You can do this for the next few months and put reminders in your phone or diary to make sure you keep track of your finances correctly.

Can I Change My Credit card Payment Due Date?

If your payment due date is difficult due to being too far from the date of your salary, you may find that moving your payment due date can help you to manage your finances better.

Usually, you will find that credit card issuer are open to working with you if it means you are going to make your payments on time. But policies and restrictions will vary from card to card.

If you are having problems, it is always better to call your card issuer (on the number on the back of your card) or log into your online account to see if you can make the change yourself.

If you are successful, make sure to check how long it will take for this change to be activated. You may still face one or two billing cycles with your previous payment due date.

Takeaway - When You Should Pay Your Credit Card Bill?

So, now that we know the difference between your card closing date and payment due date - when should you plan to pay your bill?

Well, your financial aims can affect this answer. For example, if you are planning on applying for a loan and need your credit utilization ratio to be as low as possible, paying your bill before your card closing date can be beneficial.

If you aren't planning to apply for a mortgage or other big loan, then making sure to avoid interest and late fees and pay your bill before the payment due date should be enough.