What is the difference between a due date and statement closing date?

There are two dates to keep track of when paying your credit cards: the statement closing date and the payment due date. Both are important for saving money, avoiding charges and keeping a healthy credit score. 

Let’s look at the differences. 

What is a statement closing date?

A credit card statement closing date is typically the last day of your monthly billing cycle. Purchases made after your statement closing date will be reflected on the next month's statement. 

This is also the date on which your credit card issuer calculates interest charges. Any purchases or charges after the date will be used to calculate the next month’s payment and interest charges. 

For most credit cards, you have a grace period of 21 to 25 days between the statement closing date and the day your payment is due. 

While we’re on it: did you know paying your credit card bill before its due date can lower your credit utilization ratio, a key factor in boosting your credit score? You’ll avoid late fees too, another boon for your credit score, and when you pay your balance in full, you’ll save money on interest charges.

So along with your statement closing date, your payment due date is mighty important too.

What is a payment due date?

A credit card payment due date is your deadline for making an on-time payment. You’ll find your payment due date on your statement each month, along with your balance and your minimum payment. This is the last day to make a minimum payment before incurring late fees or penalties. 

It always falls on the same calendar date. For example, if your  payment due date is April 25th, your next payment due date will be May 25th – and every 25th day of the month going forward. 

Here’s a pro tip: ask your credit card issuer to change your due date if it falls at a bad time of the month. For example, if you usually have more cash at the start of the month, consider shifting to an earlier due date. Your statement cycle will shift accordingly. 

What are other important credit card dates?

• Annual fee due date refers to an annual sometimes charged to keep a card open. The annual fee due date can vary between card issuers, but it generally corresponds to your account anniversary.

• Introductory offer date is the date when some special rates and offers no longer apply. Some credit cards come with introductory deals and terms, which end after a specified period of time. Balance transfer deals and introductory interest rates are common introductory offers, and the offer date is important to keep in mind, so you know when the terms apply to your purchases. These offers usually start when your application is approved, not on the day you actually receive your card.

• Credit card expiration date is printed on most credit cards. It’s not the date your account will be closed; it’s just typically the date your card expires. Most credit card issuers will mail a replacement card before your expiration date and sometimes your card number will change. But not always. On receiving the new card,  destroy your old card and follow the instructions to activate your new one. 

• Transaction dates mark the day when a purchase or charge was made with your card. It’s different from your posting date, which is the day your purchases and charges are applied to your account, usually lagging 2 or 3 days behind the transaction date.

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Bright makes card payments for you with every date in mind. Bright's MoneyScience™, our new patented system of 34 algorithms, studies your debt, looking at APRs, balances, interest charges and due dates, and makes smart payments for you, always on time.

It’s easier than juggling due dates and doing the math on payments month after month. Bright does all that for you, while working to lower your utilization ratio and optimizing for lower interest charges.

If you don't have it yet, download the Bright app from the App Store or Google Play. Connect your checking account and credit cards, set a few goals, and let Bright get to work.

Recommended Readings:

The best day of the month to pay your credit cards

4 dates to look for beyond the due date on your credit cards