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Yes, you can use your credit card on the due date. In fact you can use it any time between the due date and the statement closing date. Purchases made after your credit card due date are simply included in the next billing statement.
Here’s how it works:
- Your credit card statement is typically generated around the 10th of each month.
- The statement shows all the transactions that have been posted to your account since the last statement was generated.
- The due date for your payment is typically 21 days after the statement closing date.
- If you make a purchase after your credit card due date, it will be included on the next statement.
For example:
- Let’s say your credit card statement closing date is October 10th.
- Your due date for payment is October 31st.
- If you make a purchase on October 25th, it will be included on your November statement.
Here are some additional things to keep in mind:
- You will still be charged interest on any balance that you carry over from the previous month. So, if you make a purchase on October 25th and don’t pay your balance in full by November 31st, you will be charged interest on the entire balance from October 25th to November 31st.
- Your credit utilization ratio will increase if you use your credit card on the due date. Your credit utilization ratio is the amount of credit you are using compared to your total available credit. A high credit utilization ratio can hurt your credit score.
- It is generally a good idea to pay your credit card balance in full each month. This will help you avoid paying interest and keep your credit utilization ratio low.
Here are some additional resources that you may find helpful:
- Is it okay to buy something on your credit card due date? (Personal Finance & Money Stack Exchange)
- What will happen if I pay my credit card on the due date and use it on the same day? (Quora)
When is the best time to pay your credit card bill?
At the very least, you should pay your credit card bill by its due date every month. If youre like most credit card users, as long as you do that, youre fine. But in some cases, you can do yourself a favor by paying your bill earlier. This is due to the fact that the amount that is disclosed to credit bureaus may directly impact your credit scores.
To understand the effects of paying early, it helps to know how the credit card billing cycle works.
Paying early could help your credit
One of the primary factors in your credit score is your credit utilization ratio. This is the amount you owe as a percentage of your credit limit. For example, if you have a $5,000 credit limit and your balance is $2,000, your utilization is 40%. Generally, the lower your utilization, the better, and utilization above 30% could be damaging to your credit scores. This is where changing up your credit card payment comes in.
There are those who mistakenly think that a credit card’s utilization should be a target. According to E2%80%94, you should strive to maintain your credit card utilization at or above 2030%. This is based on a misunderstanding. The 30% number should be viewed as a cap. It is advisable to assume that using more than 30% of your credit limit will negatively impact it; however, the lower the better.
Credit scores are based on account information reported to the credit bureaus. That information includes your balance and your credit limit, from which the scoring formula determines your utilization ratio. But this information isnt continually updated in real time. Its reported only once a month, on the reporting date defined above.
In the aforementioned example, let’s say your issuer reports your balance on the 15th even though your payment is due on the 20th of every month. In the event that your issuer reported a $2,000 balance on the 15th, the credit bureaus would observe a utilization rate of 20% even if you paid your bill in full a few days later. Your credit score could end up getting dinged, even though your payment habits are solid.
Therefore, take into account paying early whenever your credit utilization approaches that 30% threshold, regardless of when your bill is actually due. You’ll be set up to have your utilization reported to the credit bureaus on any day of the month if you keep an eye on it and manage it.
Finally, a word on utilization: credit utilization “has no memory,” which means that credit scores are not permanently impacted by it. A month of high utilization could result in a deduction of points, but if your ratio returns to normal the following month, your scores ought to increase.
When To Pay Your Credit Card Bill (Everything You NEED To Know)
FAQ
What happens if I use my credit card the day its due?
What happens if I use my credit card on billing date?
How many days after your due date can you use your credit card?
Can I use my card on my due date?
When is my credit card payment due?
Your credit card payment will be due on the same date every month. However, if that date is inconvenient, you can have your credit card issuer change your payment due date . For example, if you get paid on the 10th, you might change your due date to the 14th or 15th of the month rather than the 1st.
Can I use my credit card after the due date?
While it’s possible to use your credit card after the due date if you have available credit, there’s a crucial factor to consider: interest charges. Credit cards typically come with a grace period, which is the time between the end of the billing cycle and the due date for the payment.
What is a payment due date on a credit card statement?
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 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.
Can I change my credit card ‘payment due’ date?
Having multiple bill payments due on the same day can be overwhelming. The good news is that it’s generally possible (and often simple and quick) to change your credit card’s “payment due” date, which can lessen financial stress throughout the month and make paying your bills easier.