If you have a credit card, you probably receive regular emails and mail notices about your payment activity, spending, and fees. These notifications are sent to you after your credit card’s “closing date.”
The closing date marks the end of your account’s billing cycle, which occurs monthly. It’s important to note that the closing date is not necessarily the last day of the month; it is determined by your card issuer and is often related to the date you opened your card.
How to Find Your Credit Card Closing Date
Regardless of whether you prefer online banking or paper statements, finding your credit card’s closing date is easy. Although different banks may display this information differently, it should always be clearly visible. Look for terms such as “closing date” or “billing period.”
For paper statements, you’ll likely find the closing date listed in multiple places. Typically, it appears under your account summary alongside details like purchases, payments, and available credit. You may also find it in the bottom right-hand corner of the last page of your statement.
If you bank online, you can easily find your closing date by viewing your transaction history. Simply select the statement period, and your closing date will be displayed.
Why Your Credit Card Closing Date Matters
Several important factors revolve around the closing date of your credit card. It can affect the interest you accrue, your credit score, and the rewards you earn.
For example, some credit card issuers deposit rewards into your account only after your statement closes. They calculate the total amount you spent during the billing cycle and then provide a lump sum of rewards.
Additionally, certain credit card benefits depend on your billing cycle. Let’s take the U.S. Bank Visa® Platinum Card as an example. It offers a 0% introductory APR on purchases and balance transfers for 18 billing cycles. To avoid fees, you must pay off your balance within these cycles, not within 18 months.
Furthermore, some card issuers delay reporting your credit usage to credit bureaus until after your statement closing date. If you maintain a high balance on your credit card, this may temporarily impact your credit score. Your credit utilization ratio, which accounts for 30% of your credit score, considers the percentage of your credit that you’re using. Therefore, a high balance might raise concerns.
Closing Date vs. Payment Due Date: Understanding the Difference
Many people mistakenly assume that their new billing cycle begins on the same day their payment is due. However, these two dates are not the same.
The payment due date is when you must make at least the minimum payment on your credit card. On the other hand, the closing date marks the end of your billing cycle and the start of a new statement period. Any interest from unpaid balances is also accounted for on the closing date.
Most credit card issuers allow you to change both your payment due date and your statement closing date, as long as your account is in good standing.
Know Your Credit Card Closing Date
Understanding your credit card’s closing date is essential for various reasons. It helps you avoid interest charges, anticipate when your rewards will be deposited, and ensure that you pay down your balance before the card issuer reports your activity to credit bureaus.
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