When using credit, taking out loans, or paying a large purchase off, keeping up with an assortment of due dates and deadlines plays a major key in your success and continual usage.^[1] Unfortunately, there are a lot of dates and deadlines to keep in mind– and sometimes they don’t line up! Knowing when certain payments are due, when a loan is paid off, and what to plan for in the month ahead can save you a ton of stress. In this Build blog, we’ll go over the credit card closing date, the payment due date, and the differences between them– and we’ll cover some tips for succeeding with both. Mark your calendars and set your reminders; we’ve got a lot of dates to cover below!

What is a Credit Card Closing Date?

Your credit card closing date is the last day of your monthly billing cycle. Instead of tracking your usage from the 1st to the 30th of every month– which would cause confusion on shorter and longer months– a billing cycle is used. This is the bracket of time your credit card usage is tracked and determines the balance you owe on the next payment due date.^[1] If you’ve used (maxed out) your entire credit card limit by the closing date of the billing cycle, you’ll owe the entire amount back by the payment due date. If you’ve only spent $100 from your credit card’s limit, you will only owe $100 on the next payment due date. With that being said, let’s go over what the credit card payment due date is below.

What is a Credit Card Payment Due Date?

While your credit card closing date is the last day of your billing cycle and determines how much you’ll owe on your next payment, a credit card payment due date determines the last day that this payment can be made before late fees are applied.^[2] So, the closing date establishes the amount, and the payment date establishes when that amount is due. Always try to pay your entire balance back each month by the payment date, because late fees are applied to late payments, and any balance leftover is tacked onto the next payment due date with added interest. Your credit card payment due date is on the same date each month, so it’s easy to set a calendar reminder on your phone or to set up automatic payments on the same date every month.

What Happens if I Use My Credit Card on the Closing Date?

If you need to use your credit card on the closing date of your billing cycle, don’t worry! The usage will either apply to the current billing cycle or will be applied to the next one.^[2] The same goes for using your card between the closing and payment dates because your next billing cycle has already begun. Keeping your closing date in mind can be helpful for your personal records and to monitor your usage each month, but making sure you’re paying your balance off by the payment due date is the most crucial step in avoiding extra fees or interest!

Should I Pay Off My Credit Card Before the Closing Date?

Yes! The bottom line is that paying your credit card balance before your closing date– and therefore, your payment due date– is great for your credit, finances, and overall discipline with using credit and spending money.^[3] Paying your balance early or making multiple monthly payments also reduces your credit utilization, which accounts for 30% of your credit score’s calculation. The earlier you pay off your credit card balance, the better off you’ll be. Moreover, as an extra tip: remember to use around 30% or less of your credit card limit each month– this shows good discipline, helps your credit utilization, and helps increase your credit score!^[4]

Find Out Your Credit Card Closing Date

Finding out your credit card closing date is easy: just look at your monthly statement when you receive your next one, or look at your card and billing details on your credit card company’s mobile app.^[2]  

Takeaway

Keep your credit card closing date in mind to help monitor your spending each month, and keep your payment due date in mind to avoid late fees, penalties, and extra interest. Keeping track of both dates will only serve you and your credit better; remember that if you can pay your credit card balance off early, go ahead and do it. This helps lower your credit utilization, which helps build your credit score.^[4] Don’t be afraid to set reminders on your phone, check your credit card’s mobile app frequently, and set money aside to help you stay on top of payments. Best of luck!

Disclaimer: Credit Card Closing Date vs Due Date is intended for educational/informational purposes only and is not intended as financial advice.

Sources:

1. What is a Closing Date on a Credit Card?
   https://www.chase.com/personal/credit-cards/education/basics/what-is-a-closing-date-on-a-credit-card#:~:text=The%20closing%20date%20is%20the,arrives%20on%20June%208%2C%202025.
   Accessed Apr 13, 2023
2. Credit Card Closing Date vs Due Date
   https://www.sofi.com/learn/content/credit-card-closing-date-vs-due-date/#:~:text=The%20credit%20card%20closing%20date,to%20avoid%20a%20late%20fee.
   Accessed Apr 17, 2023
3. Best Time to Make a Credit Card Payment
   https://smartasset.com/credit-cards/best-time-to-make-a-credit-card-payment#:~:text=To%20avoid%20paying%20interest%20and,begins%20to%20climb%20too%20high.
   Accessed Apr 17, 2023
4. What is a Credit Utilization Rate?
   https://www.experian.com/blogs/ask-experian/credit-education/score-basics/credit-utilization-rate/
   Accessed April 17, 2023