What does the closing date of a credit card mean?

The billing cycle of credit card It is composed of three dates that are extremely important for users. The cycle start date, which is when the operations carried out with the card begin to be compiled (whether they are expenses or credits), the payment due date, which is the last available day you have to deposit the minimum fee, a payment greater than the minimum or the total balance of the card; and the closing date. Find out below what the closing date means and why it is important to know it.

But what does the closing date of a credit card mean and why is it so important? Find out in minutes and organize your finances.

What is the closing date of my credit card?

The closing date of a credit card is nothing more than the closing date, that is, the last day of the billing cycle of a credit card. It is precisely on this day when your issuer or the bank will compile all the transactions you have made during a cycle in order to issue and send you the card statement or account statement.

What does the closing date of a credit card mean?

How long will the bank count my credit card charges?

The time when trades are closed, or what is known as trade compilation, is midnight, at least in most banks. Therefore, the day before your closing date may be the last day new charges can be added for your next statement.

The closing date or closing date is also the day on which the issuer will apply the interest charges on the movements or rather, on the closing balance of the billing cycle and any other charges for commissions or fees that are charged each month.

Is closing date the same as due date?

No. The closing date or closing date is not the same as the due date of a credit card payment, known in English as due date.

However, the closing date is as important as the due date because it will allow you to make deposits or cash payments to reduce the use of credit and, therefore, the balance of your card. This is especially important for improve credit, for example, or build it from scratch.

How does the closing date affect my credit?

Remember that the closing of the billing cycle is the moment in which the issuers inform the main agencies or credit bureaus of the country (Equifax, TransUnion and Experian) about your moves. This report also includes your payment history, the balance of your card, the percentage of use of revolving credit, among other data.

This means that if you pay the total balance of your card, or a good part, before the closing date, you will have a better financial situation in the eyes of the bureau and, therefore, you will earn more points on your credit report.

tip: If you want to build or improve your credit, pay the balance in full before the closing date! In this way, the percentage of use of your revolving credit will be zero (which means that you are solvent) and you will have more points in your financial record. This will allow you to access better APRs and personal loans with more attractive interest rates.

You will also be able to rent an apartment located in a better area and it will even have a positive influence on your professional career. Remember that some employers check the credit report of the candidates before giving them a job opportunity.

Remember: You can check your credit once a year for free at Equifax, TransUnion or Experian. If you wish, you can also use free options.

Where can I find the closing date of my card?

The closing date or closing date of credit cards are practically at a glance. They appear on your previous monthly card statement. But keep in mind that this is a date that can change depending on the length of your billing cycle. And they also appear in your online account, right next to the opening or cycle start date and the card balance.

If you can’t find it, don’t worry! Call your card issuer and ask how many days your billing cycle is. Use your last account statement to determine what your last closing date was and calculate what day this cycle will close using the duration set by the bank, which is unalterable.

For example, if your billing cycle is 28 days and your last known cutoff date is April 27 (based on your last statement), then your next cutoff date will be May 24.

Keep reading: