arythemogul

a lot of people get confused with credit card billing cycles so let’s break it down.

There are 3 important dates to know:

1. Statement Closing Date
This is the date your billing cycle ends. Your statement balance is based on the transactions included in that cycle.

2. Payment Due Date
This is the date your statement balance is due.

I personally pay my statement balance 3 days before the due date. Why? Because I want to give my payment time to process and make sure I’m not cutting it close. A late payment can hurt your credit, so I’d rather give myself a few days of cushion.

3. Reporting Date
This is when your credit card issuer reports your balance to the credit bureaus. Your reporting date can vary by issuer and may be around your statement closing date.

Here’s the example from the video:

📅 August 15: Billing cycle starts
📅 September 14: Billing cycle closes
💳 $200: Statement balance
📅 September 19: Payment due date
💳 September 15: New $50 purchase

Your current balance can be $250 while your statement balance is still $200.

That $50 purchase made on September 15 is part of your next billing cycle, not the statement that closed on September 14.

The biggest takeaway:

Current balance ≠ statement balance.

Know your dates. Know your balances. Use your credit intentionally. 🤍

Comment “SCORE” if you want more simple credit tips. 💳
#educational #financialliteracy #creditscore #personalfinance #genz