Caroline Lupini has been traveling the world with the help of credit card rewards since 2011. She has visited over 110 countries and is able to utilize her knowledge of credit cards and to make travel both less expensive and more luxurious. Caroline.
Caroline Lupini Managing Editor, Credit Cards & Travel RewardsCaroline Lupini has been traveling the world with the help of credit card rewards since 2011. She has visited over 110 countries and is able to utilize her knowledge of credit cards and to make travel both less expensive and more luxurious. Caroline.
Written By Caroline Lupini Managing Editor, Credit Cards & Travel RewardsCaroline Lupini has been traveling the world with the help of credit card rewards since 2011. She has visited over 110 countries and is able to utilize her knowledge of credit cards and to make travel both less expensive and more luxurious. Caroline.
Caroline Lupini Managing Editor, Credit Cards & Travel RewardsCaroline Lupini has been traveling the world with the help of credit card rewards since 2011. She has visited over 110 countries and is able to utilize her knowledge of credit cards and to make travel both less expensive and more luxurious. Caroline.
Managing Editor, Credit Cards & Travel Rewards Rachel Witkowski Correspondent/EditorRachel Witkowski is an award-winning journalist whose 20-year career spans a wide range of topics in finance, government regulation and congressional reporting. Ms. Witkowski has spent the last decade in Washington, D.C., reporting for publications i.
Rachel Witkowski Correspondent/EditorRachel Witkowski is an award-winning journalist whose 20-year career spans a wide range of topics in finance, government regulation and congressional reporting. Ms. Witkowski has spent the last decade in Washington, D.C., reporting for publications i.
Rachel Witkowski Correspondent/EditorRachel Witkowski is an award-winning journalist whose 20-year career spans a wide range of topics in finance, government regulation and congressional reporting. Ms. Witkowski has spent the last decade in Washington, D.C., reporting for publications i.
Rachel Witkowski Correspondent/EditorRachel Witkowski is an award-winning journalist whose 20-year career spans a wide range of topics in finance, government regulation and congressional reporting. Ms. Witkowski has spent the last decade in Washington, D.C., reporting for publications i.
Updated: Dec 28, 2023, 9:00am
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A credit card closing date refers to the specific date each month when your credit card billing cycle ends and a balance statement is generated. It is important to understand this date as it impacts your credit card usage, payment schedule and the interest you might accrue from charges during that cycle.
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A credit card closing date is when your credit card issuer finalizes your charges, payments and other transactions made during the monthly billing cycle.
Understanding the closing date is crucial for managing your credit card, and your credit score, effectively. It also determines when your monthly statement is generated and therefore, when your payment is due.
Your monthly statement will summarize all the transactions and activity on your account over the past month. It will also include the total balance owed, any accrued interest, the minimum payment due and due date for the upcoming payment cycle. This is also a good time to make sure all of the transactions on your card statement are accurate.
Moreover, the closing date plays a significant role in calculating the utilization ratio of your credit card which is used to determine your credit score and how much you can borrow going forward. This ratio is the percentage of your available credit that you have used.
It is calculated by dividing your credit card balance by your credit limit—a low utilization means a better credit score and ability to access more credit. You can keep your utilization ratio low by paying off your total balance before the closing date.
Additionally, the closing date also affects the timing of your credit card rewards. Many credit cards offer rewards or cash-back programs based on the amount you spend during a billing cycle. If you strategically time a purchase, you may be able to get your rewards, or even earn a welcome bonus, sooner.
It’s important to note that the closing date may vary depending on your credit card issuer. Some credit card companies have a fixed closing date each month, while others may have a closing date that changes based on the day of the week or the number of days in a month, for example. To determine your specific closing date, refer to your credit card statement or contact your credit card issuer.
Locating your credit card closing date is relatively simple. You can find it in a few different ways:
The closing date and due date are both important dates associated with your credit card, but they serve different purposes.
The closing date marks the end of your billing cycle, when your credit card statement is generated. It helps capture transactions for that specific period to provide a total balance and any additional charges. The total amount owed by the closing date also determines how much interest you might pay on the next due date.
For example, if your closing date is on the 15th of every month, any purchases or payments made from the 16th of the previous month to the 15th of the current month will be included in that statement. It is essential to keep track of your closing date to ensure you have an accurate record of your expenses for the given period.
The due date, however, is the deadline for making at least the minimum payment on your credit card balance. If you don’t make a payment by the due date, you will likely face late fees or penalties. It’s also important to note that making only the minimum payment by the due date will result in interest charges being applied to the remaining balance.
The due date is typically set a few weeks after the closing date, allowing you sufficient time to review your statement, make any necessary adjustments and arrange for the payment.
No, you don’t have to pay your entire credit card balance before the closing date. The closing date is primarily used by credit card issuers to determine the amount due, and any interest charges, on your next statement. Any payments made after the closing date will be reflected on the subsequent statement rather than the current one.
However, paying your balance in full before the closing date can have certain advantages—like avoiding interest charges and keeping your credit score up as your utilization will stay low primarily.
Understanding the dynamics of credit card payments can help you manage your finances more effectively. Payment history plays a significant factor in your credit score and your ability to get financing, a home or even an apartment. Consistently paying your credit card bills on time demonstrates responsible financial behavior.
Even if you do not pay your entire balance before the closing date, you should always make at least the minimum payment by the due date. Failing to do so can result in late fees and penalties, which can add up over time and hurt your credit score.
