When you’re managing your credit card payments, there are a few important dates to consider in your payment cycle. Among those dates are the payment due date and closing date. The payment due date refers to the deadline to make your minimum payment, and the closing date is when your total balance for the payment cycle is calculated.
The due date and the closing date both have important functions, and understanding the differences may help you oversee your spending better. Let’s walk through due dates and closing dates and explore how you can make them work for you.
What is a credit card closing date?
A credit card’s closing date is when your spending for the billing cycle is tallied. Billing cycles typically last 1 month. When you look at your statement and see the billing period, the first date is generally the start of the billing period, and the last date is the closing date.
The purchases made from the start of the billing period until the closing date count toward your balance and may be used to calculate your minimum payment for the month. Any purchases made after the closing date count toward the bill for your next cycle.
What is a credit card’s due date?
A credit card’s due date is the day that you must make a minimum payment on your account to avoid a late fee. Generally, if any part of your minimum payment remains after 5 PM on your due date, you may incur a fee from your credit card issuer.
The due date occurs at the same time every month, so if your due date for July is July 18th, your due date for August will be August 18th. Credit card issuers must give cardmembers 21 days to pay their bills, so the due date generally falls around 21 days after the closing date.
Credit card due date vs. closing date: What’s the difference?
The closing date is when your credit card balance gets counted up at the end of the last cycle, and the due date is the date that you must pay at least your minimum payment. During the 21 or so days between your closing date and your due date, many credit card issuers offer a grace period, where you won’t earn interest on the balance from your past billing cycle. This means that if you pay off your entire balance before your due date, you won’t have to pay interest on your spending from that month.
Due date vs. closing date: Why does it matter?
Knowing the difference between the due date and the closing date may help you budget and plan for minimizing interest charges. Review your balance on the closing date to see how you used your card during the previous cycle. This information may help you create a budget based on how you spent. Likewise, your balance on the closing date may give you insight into what the minimum payment will be on the due date in around 21 days. If your card issuer offers a grace period, you may want to plan on paying your full balance by the due date to avoid paying interest.
Knowing your closing date and due date also might allow you to better time your purchases. For instance, if you’ve used more credit this month than you expected, you might consider holding off on another big purchase until after the closing date. This way, that purchase will show up on your next billing cycle.
Making late payments may also affect your credit. Knowing when your due date is and making at least the minimum payment by the deadline helps ensure your credit score is not impacted.
Tips for managing your closing date and due date
There are a few different ways to keep track of your closing date and your due date that might help you pay your bill on time, such as:
- Checking your account on your closing date: Making a habit of looking at your account on the closing date each month might help you keep track of what you’ll owe on the due date.
- Signing up for balance alerts: Your credit card account may offer a way to alert you when you’ve reached a certain spending amount during your monthly cycle.
- Setting a reminder to make payments: Setting a reminder on your smartphone or marking the due date on your calendar might be a good system for making timely payments.
- Using an autopay system: Setting up an autopay system to transfer funds from another account to your credit card account may also be a convenient way to make payments on time. If you go this route, be sure you have the necessary funds in your account before each transfer goes through.
Closing date and due date: final thoughts
The closing date and the due date for your credit card are both important dates to understand. Knowing the difference between them may help you manage your credit card bill. If you have any questions about when you need to make payments, a representative from your credit card issuer may be able to assist you.
Disclosure: This article is for educational purposes. It is not intended to provide legal, investment, or financial advice and is not a substitute for professional advice. It does not indicate the availability of any Citi product or service. For advice about your specific circumstances, you should consult a qualified professional.
