Using credit card near the closing date

You’re completely allowed to use your credit card during the grace period. Any purchases you make after your closing date are part of the next billing cycle, not the current one. But if you don’t pay the full balance listed on your statement, you’ll lose the grace period.

What happens if I use my credit card before the closing date?

By making a payment before your statement closing date, you reduce the total balance the card issuer reports to the credit bureaus. That in turn lowers the credit utilization percentage used when calculating your credit score that month.

What does next closing date mean on a credit card statement?

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.

Should you pay your credit card before or after the closing date?

Your closing date isn’t the same as your payment due date. After all, your credit card payment technically isn’t due until the end of a 21- to 25-day period known as the grace period. By making a credit card payment before the closing date, you can make it seem as though you’ve racked up less credit card debt.

Do they check your credit the day of closing?

Q: Do lenders pull credit day of closing? A: Not usually, but most will pull credit again before giving the final approval. So, make sure you don’t rack up credit cards or open new accounts.

Does closing date include the day credit card?

Your credit card statement closing date is the day when the credit card company closes out the fiscal month on your credit card. Your interest and minimum payment amount are both based on the dollar amount the credit card company sees on that closing date.

Why is my due date before my closing date?

In short, your statement closing date refers to the last day of your billing cycle. Your payment due date is the deadline by which you need to pay the credit card issuer for the billing cycle if you want to avoid paying interest.

Is closing date the same as due date?

But that’s where their similarities end. While your credit card statement closing date is simply the end of the billing cycle and the beginning of the minimum 21-day grace period, the payment due date is the last day you have to make at least the minimum payment before you incur a late fee.