How often are credit card payments due?

WeMoney

If you’re unfamiliar with credit cards and how they contribute to your personal finance goals, you’ll need to know the credit card basics such as when credit card payments are due, what happens when you miss a payment, and the amount you should pay off every month. 

Luckily, you’ve come to the right place. In this article, we’ll cover everything you need to know about your credit cards bill. 

Let’s get to the following commonly asked questions: 

  • Are credit card payments due every month?
  • How do I know when my credit card bill is due?
  • What happens if you pay the entire amount owed on a credit card by the due date?
  • When might you consider getting a credit card with no interest-free days?
  • What are the disadvantages of credit cards with an interest-free period?
  • What happens if you only pay the minimum balance owed?

Q1. Are credit card payments due every month?

Your credit card bill is due every month, but only if you have a credit card balance. The minimum amount due is set by credit card issuers, and you’ll be required to pay off your credit card at the end of the month, on your payment due date.

If you fail to make minimum payments on your credit cards due date, you’ll face late payment fees. While some credit card companies will extend the payment cut-off time for certain customers, it’s still a good idea to pay your credit card bills on time so it doesn’t affect your credit score.

Q2. How do I know when my credit card bill is due?

Paying your bill on time is essential to avoid bad credit and prevent the cycle of debt. To find out your deadline for paying your credit card billing cycle, check your credit cards statement from your mobile app, online banking, or physical letters sent by your credit card issuer. 

Q3. What happens if you pay the entire amount owed on a credit card by the due date?

Previously, experts suggested that paying off your card balances in full on the card due date negatively affects your credit score, however this is incorrect. In fact, paying your balance in full every month will not only help you avoid a late fee, but you’ll also avoid paying high interest rates.

Note: Paying your credit card bill on time and in full will also have a positive effect on your credit scoring, as you’ll keep your credit utilization ratio below 30 percent. Staying close to your credit limit will be reflected in your credit reports, and can significantly drag down your score. 

Q4. When might you consider getting a credit card with no interest-free days?

Credit cards with interest-free days are usually only offered to individuals who always pay their balance on the card payment due date. If you only ever pay the minimum amount of your statement balance, you’ll likely need to apply for a no interest-free days credit card. 

If you’re interested in a credit card with interest-free days, you’ll need to make sure you pay close attention to your card billing cycle, avoid late credit card payments, and pay your full card balance on your statement closing date. 

Q5. What are the disadvantages of credit cards with an interest-free period?

While the advantages are obvious, there are some cons to taking out a credit card with an interest-free period. For example: 

  • The APR rate isn’t permanent. Credit card companies will often offer a 0 percent interest credit card for a short time, and will revert back to its regular APR once the introductory period is over. Make sure to pay attention to the terms and conditions to understand the APR you’ll be expected to pay. If it’s high, avoid carrying a balance over after the introductory period is over. 
  • Balance transfers are not often included. The vast majority of 0 percent introductory offers are on new purchases only, so be very careful before taking the plunge and performing a balance transfer - you could face a high-interest amount due at the end of the introductory period. 
  • You’ll still have to pay a balance transfer fee. If you do manage to find a 0 percent balance transfer credit card, you’ll usually be faced with a transfer fee, often at around 3 percent of the transfer balance. If you’re in significant credit card debt, you could be required to pay a large bill payment after the transfer. 
  • There’s no room for slip-ups. If your credit card payment is considered late, or you miss multiple due dates, your credit card issuer has the right to withdraw your introductory offer. To avoid this, you’ll need to make sure your minimum payment is made on your closing date or at the end of the billing period, and practice careful financial planning. 

Q6. What happens if you only pay the minimum balance owed?

If you only pay the minimum balance on your credit card bill due at the end of the month, it’ll take you much longer to fully clear your debts, and you’ll be stuck paying far more interest. If you want to know how long it will take you to pay off your debts by only making the minimum payment, check out this credit card payoff calculator

Note: If you continue to use most of your borrowing limit, you’ll also be stuck with high credit utilization rates that will damage your credit scoring in the long term. 

If you’re struggling to make more than the minimum payment every month and your debts are piling high, consider taking out a debt consolidation loan, a home equity loan, or a personal loan. For more information on debt management, read our tips and tricks here

Summing up

Credit cards can be an effective way to increase your buying power, protect you in emergencies, and allow you to pay for bigger purchases over time. However, you should always be careful when it's time to pay your balance, making sure to avoid late payments and to pay more than your statement balance. Without taking control of your credit card usage, you’ll struggle to build your credit score. 

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Disclaimer: The author is not a financial advisor and the information provided is general in nature and was prepared for information purposes only. This article should not be considered to constitute financial advice. Accordingly, reliance should not be placed on this article as the basis for making an investment, financial or other decision. This information does not take into account your investment objectives, particular needs or financial situation.

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