Experts recommend keeping your credit utilization rate below 30%, so if you have a $10,000 credit limit, you`ll want to keep the balance below $3,000. If you use your credit card to cover your day-to-day expenses, you can quickly exceed this 30% mark during your billing cycle. And if you carry that balance after the credit card payment completion date, it could affect your credit report and potentially affect your score. To be honest, credit cards can be quite confusing. With so many calendar dates linked to your card, it`s easy to misunderstand the importance of a critical date and, as a result, miss some of the rewards. But if you fully understand the different terminology, you will be aware of the important data that you need to keep in mind so that you do not miss any payments or rewards. Related: Tip: Amex`s “Please pay after” date is not the same as your payment due date Yes I don`t quite understand the statement that interest is calculated after the date of the bank statement I have Capital One about 3 weeks after the settlement date comes the due date and after that is when interest is calculated. Paying your credit card bill before the payment due date can help you reduce your credit utilization rate (which is good for your credit score). They also avoid late fees. Paying early can also save you money if you have a credit card balance from past billing cycles.

The sooner you pay this balance, the sooner you can stop paying interest. By making a credit card payment before the completion date, you can give the impression that you have accumulated less credit card debt. For example, suppose you have a credit card with a credit limit of $3,000. If you spend $2,500 but pay $1,700 before the closing date, credit reporting agencies will think you`ve only spent $800. Your due date usually falls 20 to 25 days after your deadline. For example, if your closing date falls on the first day of the month, you will usually need to make your payment between the 21st and 26th day of the month. So, for calculational reasons, let`s say you have a credit card with a $1,000 limit and you use it to make a $500 purchase. If you pay it the day before your closing date, your credit utilization rate will be 0%. If you pay it back the day after your closing date, this ratio is 50%, which can visibly affect your credit score.

So it makes sense to withdraw a large portion of your credit card balance before your statement close date, rather than waiting for it to be paid by your due date. This will reduce your credit utilization rate and help you avoid a blow to your credit score. If you are late with a previous credit card payment, making your payment before the closing date of your bank statement will prevent you from adding an additional late payment to your credit report. This is also the date on which the credit card company calculates your interest charges based on your bank statement balance, even if they don`t yet apply interest to your account. If you make larger purchases just before your billing completion date, you`ll receive your rewards sooner, but you`ll also need to pay the bill for your purchases earlier. Note that the most important exception to this rule is American Express, which has its own schedule for awarding Membership Rewards points. But did you know that there are two important dates when it comes to credit card bills? There`s your credit card due date, when you`ll need to make at least your minimum monthly payment if you don`t want to be charged a late payment fee. But there`s also the closing date of your credit card statement, which determines how much you owe on your due date. The due date of your credit card payment is at least 21 days after the date of your credit card statement. This is the last day you need to make at least your minimum payment before late fees and other penalties apply. It`s easy to confuse the closing date of your bank statement with the due date of your payment.

In short, your billing deadline refers to the last day of your billing cycle. Your payment due date is the deadline by which you must pay the credit card issuer for the billing cycle if you want to avoid paying interest. If you pay attention to your credit, you may know that an important factor in your credit score is your credit utilization rate. This is the percentage of your revolving credit that you are currently using. Understanding these two dates and their impact on your finances and loans is an important step towards healthy personal finances. It was very helpful. I understand what is needed now. Although they may vary depending on the card issuer, your annual fee will usually be charged on your account anniversary, one year after your account is opened. The length of your billing cycle may be different for all your credit cards. If you don`t see the length of the billing cycle on your credit card statement, you can calculate it by subtracting data from your last billing cycle. Then put your monthly closing date on the calendar so you always know when it will be.

Finally, if possible, add a recurring monthly reminder to your calendar to make your payment several days before your closing date. Although the completion date of your credit card statement is simply the end of the billing cycle and the beginning of the minimum 21-day grace period, the payment due date is the last day you must make at least the minimum payment before incurring a late fee. Whether you`re looking for a credit card with a low APR or maximum cash back, check out our roundup of the best credit cards for students. Your payment due date falls to the same calendar date each month, making it easier to ensure that your payment is made on time. Many credit card issuers allow you to change the due date of your payment, with some allowing multiple changes over the course of a calendar year. This can be useful from a budgeting perspective. For example, you may prefer the payment to be due at the beginning of the month rather than the end, so that it better matches your paycheck and cash flow. Your credit report is such an important part of your financial stability and your ability to access things you need, like housing, utility accounts, and even jobs. The first step to improving and protecting this important credit score and your overall financial health is to educate yourself on key factors such as credit card billing closing dates. If you have a credit card, there are two very important dates to keep in mind – the payment completion date and the payment due date. .