Credit Card Closing Date: What It Is and Where To Find It

The credit card closing date is the last day of your billing cycle. This is when your credit card issuer calculates your minimum payment due and statement balance for the billing cycle. Any card activity posted after the closing date and payments due afterward would go on your next month’s billing cycle.

Whether you are budgeting for fixed expenses or variable expenses, you are constantly in a cycle of carrying a balance and then paying it off.  Where you are in your credit card billing cycle is important to know so you can budget out your credit utilization ratio without stressing too much about what you’ve allocated for the month. Taking care of your credit card payments on time not only helps you avoid interest but also can positively affect your credit score.

Where Can You Find the Credit Card Closing Date?

The end day of your billing cycle is your card’s next closing date. You can access this information on your card statement or by logging into your online account or mobile app. This date will typically be located under one of the following labels in your account information:

• Closing Date

• Next Closing Date

• Statement Closing Date

Closing Date vs. Due Date

While the closing date is the end of the billing cycle — and the day your payment is calculated — the due date is the date when your payment is due for a credit card bill.

The due date is generally between 21 days and a month following the generation of the card statement, depending on how your statement is sent or released. For example, a credit card statement with a closing date of August 8 might have a due date between August 29 and Sept. 8.

What Is a Credit Card Grace Period?

The interval of time between your credit card’s closing date and its due date is known as the grace period. It’s considered a grace period because if you have nothing outstanding on your card and pay your balance in full, you can still use the card and make purchases without accruing interest.

It’s important to know that, although most credit card issuers do offer a grace period, it is not required that they do — you’ll need to read the terms and conditions for your card to know if you have a grace period or not.

Final Take To GO

Many important dates fill your calendar, but prioritizing your credit card closing dates and due dates can help you organize your budget and let you know exactly where you are in your monthly budgetary assessment. Keeping track of all the dates on your credit card statement and understanding exactly what they are and where to find them will help you organize your financial journey.

FAQ

Here are some answers to frequently asked questions about what credit card closing dates are and where to find them.

• Can I use my credit card on the day of the closing date?

  • Yes, you can use your credit card on the day of your closing date, or any time between the closing date and due date. Any purchase made after the closing date will simply carry over to the balance of your next month's billing statement.

• Should you pay your credit card before the closing date?

  • Technically, you only need to pay your credit card bill on or before the due date. This helps you avoid late fees and paying more interest.

  • However, if you want to have a bigger positive impact on your credit score, you can pay your bill before your credit card closing date to lower your debt-to-credit ratio.

• What is the difference between a credit card closing date and a credit card due date?

  • Your credit card issuer calculates your minimum payment due and statement balance at the end of your billing cycle. The day it does this is the closing date. A due date is the date by which you must make your minimum payment due. The due date is generally about a month after the closing date.

• Is the closing date on a credit card at midnight?

  • Yes, the credit card closing date begins at midnight on that date. This means the day before your closing date will be the last time any purchases or transactions will be put on that billing cycle.

This article originally appeared on GOBankingRates.com: Credit Card Closing Date: What It Is and Where To Find It