Credit card closing date vs. due date

In a nutshell

A credit card has two important dates. The closing date is when the month's statement stops taking new purchases. The due date is the last day to pay that statement. A purchase made one day before closing and another made one day after can be almost a month apart in time to pay.

Closing date and due date

Think of the statement as a box. During the month, each purchase goes into the box. On the closing date, the box is sealed and the bank adds up the total. Anything you buy after that goes into next month's box.

A few days after closing comes the due date. That is the deadline to pay the sealed box. The days between the two dates give the statement time to reach you and give you time to get organized.

Both dates appear on the statement and in your bank's app. Many banks let you choose the due date. The closing date usually comes with it, a few days earlier.

The "best day to buy"

The best day to buy is the first day after closing. A purchase made that day only goes on the next statement. That gives you the longest time to pay, without interest.

Watch out: each bank handles purchases made on the closing day itself differently. Sometimes they go on the current statement, sometimes on the next. Check with your bank.

Example

Carlos has a card that closes on the 5th and is due on the 15th. In March, he makes two purchases of R$ 200 each (R$ is the Brazilian real).

Purchase on March 4. The statement is still open. The purchase goes on the statement that closes on March 5 and is due on March 15. From the 4th to the 15th there are 15 − 4 = 11 days to pay.

Purchase on March 6. March's statement has already closed. The purchase goes on the statement that closes on April 5 and is due on April 15. From March 6 to March 31 there are 31 − 6 = 25 days. Adding the 15 days of April, there are 25 + 15 = 40 days to pay.

The amount is the same, R$ 200. But the second purchase gives Carlos 40 − 11 = 29 more days to gather the money.

That does not make the purchase cheaper. The money still leaves your pocket. It just leaves later.

Step by step

1. Open your statement or your bank's app and write down your card's closing date and due date.
2. Check whether the due date falls after payday. If it does not, ask the bank to change the due date.
3. Ask the bank whether purchases made on the closing day go on the current statement or the next one.
4. Leave bigger, planned purchases for the day after closing, when you can.
5. In Meu Gasto, open Cards and check that the closing day and due day match your bank's. That way each purchase you record lands on the right statement, and the calendar shows when the statement is due.
6. If the bank changes a date, update the card in the app the same day.

Common mistakes

• Mixing up closing and due dates. If you buy the day before closing thinking you have a month to pay, you find out the statement is due in a few days. Write down both dates and which is which.
• Using the best day to buy to buy more. More time does not mean more money. Buy only what already fits your budget.
• A due date before payday. The statement is due and the money has not arrived. Ask the bank to change the date.
• Wrong dates in the app. Purchases show up on the wrong statement and the month's total does not match. Check the dates against your statement.