People accumulate credit cards and then complain when they start to get into debt. Many times it does not have to do with the number they have, but simply because of the lack of understanding they have of them.
In addition to knowing when and what to use it for, a point that you should be clear about is the meaning of your cut-off and payment date.
What is the difference between the court date and the payment date?
What is the court date? The cut-off date tells you that your credit for the month “has ended”, which means cut-off date; where on that day the company will make the “cut” of what you have consumed during the month and will calculate what will be the amount of the fee that you will pay.
On the other hand, the payment date tells you what is the last day that you can cancel your installment so that you are not charged interest. Normally the cut-off date and the payment date differ by fifteen days, which are the days that the banks take to calculate the interest and fees that you must pay.
What does balance as of the cut-off date mean?
Balance at the credit card cut-off date means that it is the total amount that you must pay the bank for the expenses made with your credit card in a certain period.
This balance includes the outstanding amount from previous months, purchases made in the month, interest and commissions, if applicable.
What if I buy on the cut-off date?
What if you made a purchase on the day of the cut-off date? If you buy on the cut-off date, you will have fewer days to pay the monthly fee. Cut-off date, for example, if your cut-off date is May 10 and you make the purchase on May 9, you will have until May 25 to pay it, that is, only 16 days, since you made the purchase just one day before of your court date.
But if you make the purchase, after the date, that purchase will not be included in the statement of that month but you will have until June 25 to cancel, that is, 45 days, since it is included in the statement of the following month because It was after the court date.
What happens if I pay my credit card before the cut-off date?
If you pay your credit card before the cut-off date, you will only pay the amount consumed without interest. But remember that banks give you more than 15 to pay, that is, if your cut-off date is all 10, you will have until the 25th of that month to cancel everything you have bought since the previous month without interest.
Now, you must not only know the dates well but also choose the card well, which is the main thing. To compare them all and request the one that gives you the most benefits, you can use the Comparabien credit card comparator.