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Your Credit Card BillWhen you receive a bill for a credit card payment there are two different important dates: the billing date and the due date. Most individuals look at the due date and pay no attention to the billing date. Both are important to gain the maximum advantage from your account. The billing date is the date that your bill is printed. It is also the date in which charges are placed on the following month's bill. The due date is the date that the card company declares is the last day your account can be paid before it is considered past due and you incur a late fee. Paying your bill before this date will ensure that your account remains in good standing, and save you money because you won't incur interest fees. Your due date is usually very close to the next month's billing date on your account. Therefore, if you pay too close to your due date, the payment may not get to the company and posted to your account before the new billing cycle. If your payment doesn't get posted before the new billing cycle begins, you are damaged in two ways. First, credit card companies generally report their payment history to the agencies on or just after their due dates. If your account balance hasn't been paid down, the highest use of the account will be reported to the agency. Since your credit use ratio is so important, paying after the close could actually hurt your credit score. Second, paying after your billing cycle will cost you more in finance charges. If you usually pay your bill in full, you avoid finance charges. Paying after the billing date will result in paying finance charges for the previous month. |
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