Statement closing date vs. due date: what each means and what happens if you buy on the closing date

What is a credit card statement closing date?

The closing date, also called the statement date or cut-off date, is the day your card's billing cycle ends. In Mexico, the financial consumer agency Condusef defines the billing cycle as the period from the day after the previous closing date to the current closing date, and notes that the closing date always falls on the same day each month.

That day, the bank adds up what was recorded on your card during the cycle and builds your statement. According to the glossary of Mexico's standard credit card statement, the closing date is when the cycle's interest, the minimum payment and the payment to avoid interest are worked out.

The name changes by country. In Argentina, Law 25,065 requires the statement to show the current closing date, or fecha de cierre, and the next one. In Brazil people talk about the fechamento of the bill, and Central Bank Resolution 96 requires the bill to show the closing date of the next cycle. In Spanish-speaking countries you'll also hear fecha de corte.

Sources for this part:CONDUSEF (México), CONDUSEF (México), CONDUSEF (México), Infoleg, Ministerio de Justicia (Argentina), Banco Central do Brasil

What is the payment due date?

The payment due date is the last day to pay the statement that closed on the closing date. Condusef defines it as the latest day to pay without falling into arrears: if the payment arrives later, you may be charged default interest or late fees. In Colombia, the Financial Superintendency reminds borrowers that paying a loan late can bring default interest and a report to the credit bureaus.

The gap between the two dates isn't the same everywhere. In Mexico, Condusef says banks generally give 20 calendar days from the closing date. In the United States, the Consumer Financial Protection Bureau (CFPB) says card issuers must mail or deliver your bill at least 21 days before payment is due. In Brazil, when you sign up for a card, the issuer must offer you at least three due dates, at least seven days apart.

Sources for this part:CONDUSEF (México), CONDUSEF (México), CONDUSEF (México), Superintendencia Financiera de Colombia, Consumer Financial Protection Bureau (Estados Unidos), Banco Central do Brasil

Closing date vs. due date: an example

An example with round numbers: your closing date is the 10th of each month and your due date is the 30th. A purchase on March 9 makes the March 10 closing and is due by March 30, 21 days later. A purchase on March 11 misses that closing: it goes on the April 10 statement and is due by April 30, 50 days later.

Condusef uses this same example to show that a purchase made right after the closing date gives you up to about 50 days to pay without interest. More days don't make the purchase any cheaper: they only give you more time. If you don't pay the full balance on time, it still costs interest.

Sources for this part:CONDUSEF (México), CONDUSEF (México)

Can I use my credit card on the closing date?

Yes, you can. The real question is which statement the purchase lands on. Condusef explains that the closing date is the last day of the cycle the bank uses to include recorded transactions. If the purchase is recorded that same day, it goes on the statement that's closing and is due in a few weeks; if the bank records it later, it moves to the next one.

Since you can't always know when it gets recorded, don't count on gaining a whole month by buying on the closing date: check your bank's app to see which cycle it landed in. Payments work in a similar way: not all of them post the same day. In Mexico, Banco de México's rules say cash payments must be credited the same day, but a cheque drawn on another bank can take up to two business days.

In the United States, the CFPB explains that a payment generally can't be treated as late if it's received by 5 p.m. on the due date, and that if the issuer isn't accepting payments that day, usually a weekend or holiday, you have until 5 p.m. the next business day. In Mexico, the standard statement says that if the due date falls on a bank holiday, you can pay the next business day with no late fee. Elsewhere, ask your bank and, if you can, pay a day early.

Sources for this part:CONDUSEF (México), Banco de México, Consumer Financial Protection Bureau (Estados Unidos), CONDUSEF (México)

How does the grace period work?

In the United States, the CFPB defines the grace period as the time between the end of a billing cycle and the payment due date: during it, you may not be charged interest if you pay your balance in full by the due date. Issuers aren't required to offer one, but most cards do on purchases, not on cash advances, which generally charge interest from the day of the transaction.

If you don't pay in full, you lose that benefit: according to the CFPB, you're charged interest on the unpaid balance and on new purchases from the day each one is made. And if you pay in full some months and not others, you may lose it for the month you didn't pay in full and for the month after.

In Mexico, the statement shows the payment to avoid interest, or pago para no generar intereses, which includes the cycle's purchases and the monthly payments of interest-free instalment purchases. In Brazil, Central Bank Resolution 96 requires the full bill amount to appear first as the default payment option.

Sources for this part:Consumer Financial Protection Bureau (Estados Unidos), CONDUSEF (México), Banco Central do Brasil

Pay in full or pay the minimum?

The minimum payment keeps your card current, but it doesn't bring it to zero. On Mexico's standard statement, Condusef explains that paying the minimum avoids late fees and default interest, but not regular interest: it accrues on the balance you didn't cover and shows up in the next cycle. That's why it recommends using it only as an exception or in emergencies.

In Brazil, whatever you leave unpaid on the bill can only stay on revolving credit until the next bill's due date; after that, the balance may move to an instalment plan on better terms than revolving credit, under National Monetary Council Resolution 4,549. Whatever your country, the rule that protects you most is the same: if you can, pay in full by the due date.

Sources for this part:CONDUSEF (México), CONDUSEF (México), Banco Central do Brasil

How to track your dates in Oslo

In Oslo, go to Money and, under Debts, tap “Add a debt or a card”. Choose “Card” and enter your “Cut-off day” and “Payment day” as they appear on your statement; if you like, add the “Interest rate”. Under each field, Oslo reminds you what each date means.

When you log a purchase with “Add an entry” and pick the card under “Paid from”, it counts as spent the day you make it if you pay in full, or one instalment a month if you split it. With your cut-off day, Oslo works out your “Next payment” from what you logged in that cycle. It's an estimate: it doesn't include interest, fees or what you owed before. When your statement arrives, tap “Add the real amount from your statement” and Oslo uses that figure.

Oslo reminds you two days before your payment day, and when you pay, you tap “Log a payment”. You can turn those reminders on or off in More, Settings, Notifications, “Payments and due dates”. On the free plan you can track up to three debts, and each card counts as one.