When is a Credit Card Payment Due?
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If you’re like most people, you probably have a credit card or two that you use on a regular basis. But do you know when your credit card payments are due?
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Introduction
Credit card companies generally give you a grace period of 20 to 25 days after the close of each billing cycle to pay your bill without triggering a finance charge. However, if you don’t pay the full balance by the due date, you’ll be charged interest on the outstanding balance. The amount of the finance charge depends on your interest rate and how long it takes you to pay off the balance.
The Grace Period
Most credit card companies give cardholders a grace period of 21 to 25 days to pay their bills without incurring interest charges. Grace periods typically begin on the first day of the billing cycle and end on the last day of the billing cycle, although there can be some variation. For example, American Express begins its grace period on the first day purchases are made, while Discover begins its grace period on the last day of the billing cycle.
To avoid paying interest, you’ll need to pay your balance in full by the due date each month. If you don’t think you can do that, you might want to consider a card with a longer grace period or a card that doesn’t have one at all.
Keep in mind that only purchases qualify for a grace period — balance transfers and cash advances almost always start accruing interest immediately. Also, if you’re late with a payment, you may lose your grace period for future months.
When is a Payment Considered Late?
Most credit card companies consider a payment late if it is received after the due date. However, some credit card companies may not consider a payment late if it is received within a grace period. A grace period is usually between 21 and 25 days after the billing cycle ends. You may have to pay a late fee if your payment is late.
The Penalty for Late Payments
Most credit card companies require you to pay at least the minimum payment by the due date each month. If you don’t, you’ll usually be charged a late fee. The typical late fee is up to $35, but it can be even more if you have a history of making late payments. You might also be charged an additional penalty APR (annual percentage rate) that can last for six months or more.
Avoiding Late Payments
Credits cards companies usually give a grace period of 21 days from the end of the billing cycle until the payment is considered late.
During this time, you can still avoid any late fees or penalties by making at least the minimum payment on your balance.
However, if you don’t pay off your balance in full by the end of the grace period, you’ll start accruing interest on your remaining balance.
Some credit card companies may offer a shorter grace period for promotional periods or balance transfers, so it’s important to check with your issuer to see what their policy is.
If you’re struggling to make your credit card payments on time, there are a few things you can do to get back on track:
-Set up automatic payments: Many issuers offer this service, which will automatically deduct your minimum payment from your checking account each month. This can help you avoid forgetting to make a payment or being late due to mail delays.
-Ask for a hardship plan: If you’re facing financial difficulties, some issuers may be willing to work with you to set up a modified payment plan that fits your budget. This could involve temporarily lowering your interest rate or waiving late fees.
-Consider a balance transfer: If you have good credit, you may be able to find another card with a 0% intro APR offer and transfer your balance over. This can give you some breathing room to pay down your debt without accruing additional interest charges.
Conclusion
Your credit card issuer will give you a due date for your minimum payment, which is typically 21 to 25 days after the close of each billing cycle. But you have a grace period of at least 20 days (but not more than 25) from the closing date to pay your bill in full and avoid paying any interest on your purchase.
