The due date is the day by which payment on a card statement must arrive so that no interest accrues on purchases made during the cycle.
The due date is the day by which payment on a card statement must arrive so that no interest accrues on purchases made during the cycle.
Also called: Due date.
How it works#
The due date falls some weeks after the statement date, and the period between them is the grace period. Paying the full amount in time avoids interest on purchases. Paying less leaves the remainder owing, and in many products the grace period then disappears for new purchases as well, until the balance is cleared again.
Not to be confused with#
The due date is not the statement date: paying by the due date prevents interest but no longer changes the balance already reported.
In German#
The German term is Fälligkeitstermin. German version of this term
Related terms#
- Statement date: The statement date is the day a card issuer closes the billing cycle, produces the statement and reports that day’s balance to the credit bureaus.
- Credit utilization: Credit utilization is the ratio between the balance on a card and its credit limit, expressed as a percentage.
Articles that use this term#
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