If you're wondering what exactly the due date is on your credit card,
I'm gonna explain everything about it because honestly it is fairly straightforward but it is
a tiny bit complicated if you don't know the ins and outs of the due date and so that's what we're
gonna explain in this video now before we can understand what the due date is on the credit card
the first thing we need to learn about is called the billing cycle and this is very straightforward
every single credit card out there has what's called a billing cycle and it's basically just
a 30-day window where anything that happens on the credit card so we're talking spending
returns interest anything like that it's going to be jumbled up into that billing cycle
and as soon as the cycle closes that's when you're going to be given your statement balance
and a due date and the due date is generally 25 days after that billing cycle closes so if your
cycle ended on the 31st this month then the due date is probably going to be on the 25th
the following month because it's always about 25 days after that cycle closed so if your cycle
closes randomly on the 15th or the 10th of the month obviously that's going to change the date
of when it's due but you can always figure it's going to be due about 25 days after that cycle
closes so as far as the due date on your credit card is concerned it is very important that you
pay attention to that date because you don't want to have any late payments on your credit card
because the first thing that can happen if you make a late payment is you can have a higher apr
on your credit card that's called a penalty apr for making a late payment and on top of that if
you're more than 30 days late that information can actually be passed on to the credit bureaus
and that can affect your credit score negatively as having a late payment on your credit score
which can affect it quite a bit so not only can your credit score go down quite a bit but it can
take up to seven years to get that off of your report so definitely don't make any late payments
on your credit card and don't miss that due date now you also need to understand that every single
month that you're given your due date you're also going to be given four different payment options
as to how you want to be paying off your credit card so the first one on the list this is going
to be your statement balance the second is going to be the minimum payment the third is going to be
your current balance and then the fourth we're just going to call this other or any amount
because this just implies that you can pay any amount that you want towards the credit card
and those are your four options and i'm going to elaborate a little bit more on these for you
guys because they are very important to understand because they're all uniquely different the first
option that you have to pay called the statement balance is probably the most important one in my
opinion because remember as long as you pay off that statement balance in full every single month
by that due date then you never have to pay any interest on your credit card and really you don't
have to worry about the other payments as long as you're just paying off that statement balance
every month so in my opinion that's probably the most important because then you don't have to
worry about paying interest but if you don't have enough money to pay off that statement balance
then you can look at the other options as well next step is called the minimum payment and it's
basically just the minimum that you have to pay by the due date in order to not be considered late
and have that penalty apr or get dinged on your credit score so definitely make sure to at least
pay that minimum payment by the due date but keep in mind that if you are paying the minimum payment
you are paying about 99 in interest and one percent in principle every month and it can take
you a very long time to pay off that credit card because you are mostly going to be paying interest
on it so really try to avoid that unless you have no other option and then the third option is
called the current balance and this is basically everything that you owe on your credit card
because when that billing cycle ended if you're paying that about 20 days later then you've
probably made more purchases on your credit card and those have been accumulating inside
your current balance and technically those aren't really due until that next billing cycle closes
but if you want to you can pay off that current balance and just get that credit card all the
way down to zero if you wanted to but that is your choice and you don't have to be making that
current balance payment you just have to at least make that statement balance payment by the due
date in order to not be paying interest on the credit card and then the last option is called
other or any amount and i personally use this one all the time because you can make as many payments
as you like towards your credit card every single month and there's no cap on that it's not like
you can only pay it once per month you can pay it as many times as you want so for instance
if you owe a thousand dollars by the 25th of the month but at the beginning of the month you only
have 500 bucks then maybe make a 500 payment and then make another 500 payment later in the month
before that due date and then you can wipe out that statement balance in full with two payments
and this can also help you with the minimum payment as well because if you had let's say a 50
minimum payment on your credit card but you did have 200 bucks that you could pay towards
the credit card then definitely do that instead of just 50. so put in 200 in the other amount
pay that and you're going to pay off the minimum payment plus a little bit more so that you are
going to be paying less in interest and this is going to be beneficial for you in the long run
even if you don't have enough money to quite pay off that entire statement balance in full
so just remember that the due date is very important on your credit card
and it's always going to be about 25 days after that billing cycle closes
and then you can choose how you want to be paying off your credit card by that due date
now if you're ever in the market for a new credit card definitely check out creditcards.com i've got
an affiliate link for them in the description below so check them out if you have an interest
because they have a very wide selection of credit cards that you can choose from and basically you
can just compare which ones are going to be better for your lifestyle so definitely check
them out if you have an interest but thanks for watching this video have a great day