Credit card statement closing date

What Is the Meaning of "Closing Date" for Credit Cards?

If you don't know how to read your credit card statement, you could be missing out on vital information that affects how your finances are reported to credit bureaus. You must understand the various terms used on your statement to plan your budget for the month, because when you don't know what things like "closing date" represent, you can't act accordingly. While it may seem inconsequential at first, the closing date for your credit card statement can have a major impact on your credit score.

The statement closing date for your credit card is the date that the current billing cycle ends. The credit card company calculates the interest you owe based on the amount you owe as of the closing date, and it also reports the amount of money you owe to the credit bureaus. If you make a payment before the closing date, you owe your creditor less money as of the closing date, meaning that when they calculate your interest, it won't be as high.

Planning your budget around the credit card's closing date can have a positive effect on your credit score, and even more importantly, helps you avoid a negative report to the credit bureaus. For example, if you have a credit limit of $500 and have used up $455 of that limit as of the closing date, that number is reported to the credit bureaus -- and it doesn't look good. Even if you pay off the card in one payment, doing it after the closing date means that your high percentage of card utilization was reported. Paying off the card before the closing date, however, means that the amount you are reported to owe is now $0.

The best time to use your credit card is immediately after the closing date, as this gives you the most time to pay it off before being charged interest. Interest doesn't accrue on your card immediately -- it is calculated on the closing date, so if you pay off your card before that date, you don't owe any interest. For example, if you use your credit card to make a major purchase the day after a closing date, the charge shows up on the next month's bill. Making the payment before the next closing date, then, gives you a window of 30 days or more to pay off that major purchase before it collects interest.

Now that you are planning your payments according to the closing date, you need to know just how much to pay off. Of course, if you can pay off your cards in full with each billing cycle, this has the best impact on your credit score. If you are balancing payments on multiple cards, however, distribute payments across the board so that each one ends up below 10 percent. When you only use 10 percent or less of your available credit, you receive favorable reports from the credit bureaus.

Credit card statement closing date

The definitive way to find out the closing date is to call the card issuer and ask. You can most likely also find this out by logging into your account online. (Thanks JoeTaxpayer for pointing this out.) If this is too much trouble, read on.

When you received the card, you should also have received a "cardmember agreement" booklet. In this booklet, it should explain how long after the closing date is the due date.

Typically the due date is at least 25 days after the closing date. (This seems to be pretty universal across card issuers; maybe it is a legal requirement but I am not sure.) Assuming that's the case, working backwards, if your due date is the 23rd of each month, that means your closing date is near the end of the previous month (say around the 30th).

So your purchase on March 14 will be part of the billing cycle that closes on March 30 or thereabouts, and the payment for that cycle will be due on April 23.

Once you receive your first statement, it will include the dates of the billing cycle that it covers; the last day of that cycle is your closing date. You can then assume it will be roughly the same day of every month from then on (it may vary by a day or two due to months with different lengths).

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Which Credit Card Issuers Let You Change Your Statement Closing Date?

There are two main reasons why somebody might want to change their statement closing date: they want their credit utilization to be updated sooner/later than normal (read this post to see when a credit card issuer will update your credit usage) or they want points/miles earned to post sooner or later. For example if you’re going for the Southwest companion pass you might want to change your statement closing date so that points post in a new calendar year.

Usually changing your statement date will also cause your due date to change as well. Some people also like to have their due date sync up with when they are paid so they can pay off their credit card debt immediately.

Allows you to change your statement closing date simply by calling or via chat. In the past this meant that a new card needed to be issued as one of the numbers in your card was tied to what cycle you were in, but this is no longer the case.

You cannot change your statement date if you’re already more than 30 days past due.

Changing your statement closing date with Bank of America is easy, just call the number on the back of your card to request the change.

It’s possible to change your statement closing date, just call the number on the back of your card.

You can change your statement date by calling, but you cannot change your statement date if you’re already more than 30 days past due.

Chase generally requires your account to be in good standing (e.g not past due) to be able to change your statement date, but in some cases they’ll make exceptions with those who are struggling.

It’s possible to change your statement date with Citi by calling in and asking. For some reason there is sometimes a delay in when this actually takes effect and they can only extend the statement date rather than reduce it. For example, if your current statement closing date is January 10th and you want that changed to the 7th they would only be able to change it to February the 7th. You cannot change your statement date if you’re already more than 30 days past due

Discover lets you change your payment due date online (note: this is not your statement closing date that is used for reporting credit utilization to the credit bureaus). You can also request that your statement closing date is changed, but you’ll need to call in directly to do so. There are a couple of rules for both changes:

  • Cannot change it more than once every 90 days
  • Cannot change it in your first or anniversary months
  • You account must be in good standing for this option to be available

It’s possible to change your statement closing date by calling.

Sorry this post isn’t more exciting, I was expecting there to be some differences between each card issuer but it looks like you can do it with any card issuer just by asking. If you have any ideas for similar posts where I look at different rules for each card issuer, just let me know what they are in the comments or by contacting me.

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11 Comments on "Which Credit Card Issuers Let You Change Your Statement Closing Date?"

Credit card statement closing date

Credit Card Statement Closing Date vs Due Date | BeatTheBush by BeatTheBush 1 year ago

912 Likes 14 Dislikes

The closing date of your credit card is not the due date. The two dates are completely separate. First, there is a period at which you are billed. The last date is your statement closing date. You are given some time to pay this bill before late charges are enforced, typically around 28 days. This date that is 28 days later is the due date. Hence, if you want to try out the credit score boosting method, you need to monitor your statement balance a day or two before the CLOSING date and make a full paying on the current account balance AND make sure it posts before the closing date.

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