Credit cards can be a bit confusing if they don’t know clearly some key points of their operation. Ideally, before you start using them, you have at hand all the necessary information to avoid unfavorable surprises in the future and make the most of your plastic and its benefits.
Two of the most basic and fundamental concepts are the cut-off date and the payment date. Many people are unaware of the existence of the cut-off date or think it is the same as the payment date, but in reality they are two different elements.
The cut-off date is also known as the closing date or billing date
It refers to the day that the purchase cycle of that month closes, that is, everything you bought until that day, will enter your receipt of the month, and everything you buy after that date, will enter the next period.
Instead, the payment deadline refers to the last day on which you can pay your monthly fee for your card. If that date passes and you have not made the corresponding payment, you will have to pay in addition to the fee, interest and late fees.
Suppose your closing date is 5 of each month then, all purchases you make from five to five, will enter the billing period. Your account statement is issued on five and after that, the bank gives you approximately 20 days until your payment deadline, that is, on the 25th of the month. Until that day you will have to cancel the fee corresponding to that period.
Not all cards have the same closing and payment deadlines
So you should know clearly which ones are yours and have them memorized, to know how to plan your purchases and take advantage of your calendar.
If you are thinking of looking for a new credit card, talk to the bank you choose to accommodate the dates according to the days you receive your salary and other income. Also, remember that there are more and more new benefits on the cards, so before requesting one, compare the alternatives at The Alderitoyres.