Billing Cycle – Credit Card Account Statement Closing Date
Billing Cycle – Credit Card Account Statement Closing Date
Billing cycles are the credit card transactions that are billed in a given time which the last days of the billing cycle is seen as statement of account closing date.
Billing Cycle – Credit Card Account Statement Closing Date
The closing date are the date that finance charges are summed and added to your balance, here, your billing statement is prepared. All transactions you made between the previous account statement closing date and the current statement closing date is added to the billing statement that’s created on the account statement closing date.
Although, credit card statement displays the balance as of your account statement closing date, your current credit card balance can be different once you’ve made purchases or payments since your account statement closed.
Knowing your Account Statement Closing Date
It is essential to know your account statement closing date and it will be helpful that is if you want to pay down your balance before your billing cycle ends. It is necessary if you want to reduce your balance for credit reporting purposes. Having a low – or zero balance – listed on your credit report will increase your credit usage and could increase your credit score.
Here, credit card billing statement do not really include the upcoming closing date, which can make it a little hard to time your credit card payments just right. but you can calculate it by adding the number of days in your billing cycle to the previous account statement closing date.
The length of your billing cycle may be different for all your credit cards. If you don’t see the length of the billing cycle on your credit card statement, you can calculate it by removing the dates in your most current billing cycle.
Credit card Account Statement closing date vs. Payment due date
Account statement closing date and Due Date are not the same. Due date denotes when the payment is due on your statement balance. This date is when payment is due for charges made from the previous billing cycle. The closing date, as stated earlier, is the last day of the billing cycle and the point at which finances charges are calculated or summed and added.
How to take advantage of the billing cycle
Once you have a plan to make a large payment for you to pay down or completely pay off your balance is good to do it before the account statement closing date. Once is done like that, the lowest balance is reported to the credit bureaus.
Accordingly, your credit reports displays you are using less of your available credit. Credit utilization accounts for 30% of your total FICO score, so it’s important to keep balances as low as possible. Moreso, if you want to avoid interest charges, you’ll need to pay off your statement balance in full before the statement closing date.
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