Credit Card Closing Date: Meaning And Implications

If you have a credit card, you almost certainly receive emails and notices in the mail each month with such salient account details as your payment activity, overall spending, and incurred fees. You receive this correspondence 12 times per year after your credit card “closing date.”

A closing date occurs after each account billing cycle, which happens once per month. Your billing cycle doesn’t necessarily close on the last day of the month—in fact, it often doesn’t. Your billing cycle is instead decided by the card issuer and often relates to the date when you opened your card.

Billing cycles are a way for the bank to compartmentalize your yearly activity. But a handful of important things happen after your closing date, so it’s important to know when it is. Let’s talk about where to find your closing date and why it matters.

How to find your credit card closing date

Whether you bank primarily online or collect paper statements, finding your credit card account’s closing date is simple. Each bank displays this information slightly differently, but it should always be very apparent. Look for terms such as “closing date” or “billing period.”

With paper statements, your card’s closing date is likely printed in multiple areas. Commonly, you’ll find an “Opening/Closing Date” listed under your account summary with other details such as your purchases, payments, available credit, etc. You may also find it on the bottom right hand corner of the final page of your statement.

Those who bank online should be able to find their statement closing date by simply viewing their transaction history. You can view your account activity by statement period, which immediately reveals your closing date.

Finally, you will likely incur any credit card interest on your statement closing date. Ideally, you should never carry a balance on your credit card due to high APR. But if you do, the fees will almost always post to your account just before your next billing period begins.

Why your credit card closing date matters

Many components of your credit card revolve around the closing date. This can affect the interest you accrue, the health of your credit score, and the cash back or other awards you earn.

For example, many (though not all) credit card issuers only add rewards to your account after your statement closes. They tally up all the money you’ve spent throughout your billing cycle, then deposit a lump sum into your account.

Some credit card benefits even depend on your billing cycle. Take the U.S. Bank Visa® Platinum Card: It offers 0% intro APR on purchases and balance transfers for 18 billing cycles (followed by a 19.49% to 29.49% variable rate, depending on creditworthiness). To avoid fees, you’ll need to ensure you pay off your balance within 18 billing cycles—not within 18 months.

Also, some card issuers wait to report your credit usage to credit bureaus until after your statement closing date. If you’ve got a high balance on your credit card, this could temporarily ding your credit score. That’s because your credit utilization ratio (that is, the percentage of your credit that you’re using) accounts for 30% of your total credit score. For example, if you’ve got $10,000 in credit and you’ve made a $9,000 purchase, the credit bureaus could view that as a red flag.

Closing date vs. payment due date: What’s the difference?

You may erroneously assume that the date your bill is due is the date your new billing cycle begins. But these two things are different.

Put simply, a payment due date is when you are required to make at least the minimum payment on your credit card. A closing date is when your billing cycle ends and a new “statement period” begins. Again, the bank will also account for any interest from hanging balances on your closing date.

Most issuers allow you to change both your payment due date and your statement closing date as long as your account is in good standing.

TIME Stamp: Know your credit card closing date

This information is important for a variety of reasons. You’ll need to know your credit card closing date to avoid interest charges—or if you’d like to know when to expect your credit card rewards to deposit into your account. It’s also a good idea to know your closing date to make sure you pay down your balance before your card issuer reports activity to the credit bureaus.

Frequently asked questions (FAQs)

If I pay my credit card early can I use my credit again?

Yes. Once your payment posts to your credit card, you are free to use that credit again. Just note that continually spending above your available credit each month can be of concern to your card issuer. It may signal the company to perform a financial review, even if you pay off your card frequently. As long as you’re not making any questionable purchases, there shouldn’t be anything to worry about.

When should I pay off my credit card?

You should pay off your credit cards at least once per month on the payment due date. But it can be beneficial to pay it off two or three times per month.

Credit utilization is a big factor in determining your credit score. The lower it is, the better your score.It’s worth noting, though, that it should be above 0%  as credit bureaus like to see that you’re using your cards). You can treat your credit cards like debit cards and pay them off soon after a purchase.

How do credit card payments affect my credit score?

Credit card payments make up a massive part of your credit score. Payment history accounts for 35% of your credit score and credit utilization 30%. Making payments often and on time will bolster both and help you to prove yourself reliable with credit.