Question 1

What is a statement closing date?

Accepted Answer

Your statement closing date is the final day of your credit card billing cycle. The length of your statement period depends on your credit card issuer, but most billing cycles are about 30 days. Your monthly credit card statement includes all charges from the current statement period, plus any unpaid balances and interest from previous billing cycles. Transactions that occur after the closing date appear on the following credit card bill.

Question 2

What is a credit card due date?

Accepted Answer

Your credit card due date is when your payment must arrive to keep your account in good standing. If you pay your credit card bill by mail, send your payment at least a few days in advance so it arrives by the due date. If you don't make at least the monthly minimum payment by the due date, you may owe late fees. Your credit card payment is usually due 21 to 25 days after your statement date. The due date typically falls on the same day each month. So, if you have to pay your bill by April 10, your next payment will be due on May 10, then June 10, and so on.

Question 3

What is a grace period?

Accepted Answer

The grace period is the time between your statement closing date and your payment due date during which you won't be charged interest—if you pay off your entire bill on time. Credit cards typically charge interest daily, starting at the end of the statement period. However, if you pay your bill in full during the grace period, that interest is waived.

Question 4

Should you pay your credit card statement balance before the due date?

Accepted Answer

Your card issuer typically reports your balance to credit bureaus every month. So, by paying down your debt before your card issuer reports to the credit bureaus, you may protect your credit score. The reporting date varies by card issuer, but it's often close to the end of your billing cycle. If you have an outstanding balance, paying your bill early may help you save on interest charges, especially if you pay more than the monthly minimum. Interest usually accrues daily, so the longer you wait to make a payment, the more interest you might accrue.

Statement Closing Date vs. Due Date

Key Takeaways

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