Statement Closing Date vs. Payment Due Date: What's the Difference? (2024)

Credit Cards
Credit Card Basics

ByJacqueline DeMarco

Updated on May 11, 2024

Reviewed by

Khadija Khartit

Reviewed byKhadija Khartit

Khadija Khartit is a strategy, investment, and funding expert, and an educator of fintech and strategic finance in top universities. She has been an investor, entrepreneur, and advisor for more than 25 years. She is a FINRA Series 7, 63, and 66 license holder.

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Key Takeaways

Your statement closing date is when you receive your credit card statement.
You generally have 21 days after your statement closing date to pay your credit card bill.
Your payment due date is your deadline for making an on-time payment.
If you don't pay your balance off in full by your payment due date, you will need to start making interest payments.

Statement Closing Date vs. Payment Due Date

It’s easy to confuse your statement closing date with your payment due 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.

Statement Closing Date	Payment Due Date
Last day of the billing cycle	The date by which you need to pay the issuer
Usually occurs 20–25 days before the payment due date	You must pay your balance off by this date to avoid interest charges

Statement Closing Date

The statement closing date refers to the last day of the billing cycle. Generally, this date occurs 20–25 days before you owe your payment. On your statement closing date, you’ll be able to prepare to pay your credit card bill because the issuer will:

Calculate any monthly interest charges owed and your minimum payment
Post your credit card statement (your bill) to your online account, or mail it to you if you don’t do paperless billing

Payment Due Date

Your payment due date is the date your issuer expects to receive payment in full if you don’t want to pay any interest. On or shortly after your statement closing date, you should receive a credit card statement that shows your total balance, your minimum payment amount, and when your minimum payment is due.

Your minimum payment refers to how much of your balance you need to pay to stay in good standing with the issuer. If your minimum payment is less than your balance, you’ll pay interest on the remaining balance—unless you’re in a promotional APR period.

Grace Periods for Major Issuers

The period between your statement closing date and payment due date is known as your grace period. Credit card companies give you a grace period so you have time to pay your balance in full before any interest charges kick in.

Note

The law doesn’t require a grace period, but many credit card issuers choose to offer one. If they do, those issuers legally have to send their customers their credit card statements at least 20 days before your payment due date. To avoid confusion, confirm that your credit card issuer offers a grace period and, if so, how long it is.

The following table includes some grace periods for five major credit card issuers:

Issuer	Grace Period
Capital One	A minimum of 25 days from the end of the billing cycle
American Express	At least 25 days from the end of the billing cycle
Chase	A minimum of 21 days from the end of the billing cycle
Discover	A minimum of 25 days from the end of the billing cycle (or 23 days for billing periods that begin in February)
Barclays	A minimum of 20 to 23 days from the end of the billing cycle, depending on the card

When Is the Best Time to Pay?

The best time to pay off your monthly credit card statement is before or on the payment due date. Paying your credit card bill late not only leads to pricey interest payments but could also decrease your credit score.

Paying your credit card bill before your payment due date helps you lower your credit utilization rate (which is good for your credit score). You’ll also avoid late fees. Paying early can also save you money if you have a balance on your credit card from past billing cycles. The sooner you pay that balance off, the sooner you can stop paying interest.

Note

To make sure you never miss a payment, set up automatic payments for your entire balance or just the minimum payment required on your due date. Just make sure you always have enough funds in the bank account you link to pay your bill.

Frequently Asked Questions (FAQs)

Should I leave a small balance on my credit card to help my credit score?

Leaving a balance on your card will not help your credit score, but paying your card off each month can.

Should I make my credit card payment early, before the due date?

If you carry a balance on your card, making your payment early can reduce the amount of interest you'll pay. It can also lower the balance amount that your credit card company reports to the credit reporting agencies.

Can I make more than one payment per statement period on my credit card?

Most of the time, you should be able to make as many payments as you want to your account during each statement period. However, some credit card issuers do limit the number of payments per month, so it's best to check with your specific issuer.

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