Statement Closing Date vs. Payment Due Date
It’s easy to confuse your statement closing date with your payment due date. In short, your statement closing date refers to the last day of your billing cycle. Your payment due date is the deadline by which you need to pay the credit card issuer for the billing cycle if you want to avoid paying interest.
Calculate any monthly interest charges owed and your minimum paymentPost your credit card statement (your bill) to your online account, or mail it to you if you don’t do paperless billing
Payment Due Date
Your payment due date is the date your issuer expects to receive payment in full if you don’t want to pay any interest. On your statement closing date, you should receive a credit card statement that shows your total balance, your minimum payment amount, and when your minimum payment is due. Your minimum payment refers to how much of your balance you need to pay to stay in good standing with the issuer. If your minimum payment is less than your balance, you’ll pay interest on the remaining balance—unless you’re in a promotional APR period.
Grace Periods for Major Issuers
The period between your statement closing date and payment due date is known as your grace period. Credit card companies give you a grace period so that you have time to pay your balance in full before any interest charges kick in. The following table includes the grace periods of six major credit card issuers: Paying your credit card bill before your payment due date helps you lower your credit utilization rate (which is good for your credit score). You’ll also avoid late fees. Paying early can also save you money if you have a balance on your credit card from past billing cycles. The sooner you pay that balance off, the sooner you can stop paying interest.
