Most of us have monthly obligations including rent or a mortgage payment, a car note, insurance premiums and bills for our cell phone and credit card payments. In most cases, you don’t have flexibility for paying rent or your wireless bill, but many credit card issuers allow consumers to request a due date which can align your credit card statements with when you get paid or allow some breathing room if all your bills are due at the same time. If you feel that you are having challenges meeting your current credit card cycle’s billing due date, it’s worth exploring the option of requesting a specific due date from your issuer. Here’s what you should know.
What is a credit card due date?
Your credit card due date is the date each month that your credit card balance is due. Your credit card issuer picks and assigns you this date once you’re aprroved for an account.
“If you’re a credit cardholder, the due date is your deadline: It’s your final opportunity to pay what you owe without incurring penalties, late fees and interest, or damaging your credit score,” says Monica Eaton, CEO of Chargebacks911, a financial consultant firm. “The least amount you have to pay by your due date is your minimum balance.”
Your credit card issuer has leeway to make decisions
According to Eaton, the banking industry is heavily regulated, but credit card companies have a surprising degree of discretion when it comes to changing due dates. “Some of them are as flexible as you desire: Your wish is their command while others might limit due date changes to once every three-or-so billing cycles, or require that your account isn’t in default,” she notes. To find out about your bank’s policies, speak to them directly to find a suitable solution.
If month after month you find that the due date isn’t working with the timing of your paychecks, you may want to think about timing your pay to when your credit card bills are due instead of just pushing your bills aside entirely when in a financial crunch. “It’s a horrible financial strategy, because ignoring a problem won’t make it go away and if anything, it makes it worse,” says Eaton.
➤ LEARN MORE:Does carrying a credit card balance hurt your credit score?
When does picking a new date make sense?
Timing the due dates of your credit cards can help in specific ways:
You can keep cash flow steady. If your existing credit card due date falls on a day close to the end of the month, and you get paid on the first of the month, this could present challenges. For example, your checking account balance could be very low, or you may not have enough funds to cover expenses like daycare or insurance costs. If you prefer to stagger your monthly obligations so you maintain cash flow, requesting a due date in the middle of the month may be a way to better manage your finances.
You can work to keep your credit strong. For even more peace of mind, if you get paid at the beginning of the month, be sure to pay your housing expenses first followed by credit card statements. Maintaining positive pay habits can help ensure that your credit score remains favorable.
You can make saving a priority. When you know when your bills are due each month, you have a better handle on what you’ll have available to put toward savings goals. There are fewer financial surprises once you have a schedule in place for cash coming in and cash leaving your accounts.
➤ LEARN MORE:What happens if you go over your credit limit?
How to change due date on credit card
Your credit card due date is typically determined by your credit card issuer and is based on the billing cycle of your account, says Rod Griffin, senior director of consumer education and advocacy at Experian. “Due dates are typically the same day each month and some credit card issuers may allow you to change your due date to better align with your financial schedule,” he adds. “To do this, you typically need to contact your credit card issuer directly, either through their customer service line or online.”
How can you make your chosen due date work in your favor?
To stay on track, create a system that works for you. “Setting up reminders for you has never been easier, especially since we’re all wired 24/7 to our smartphones, smartwatches, and smart devices,” Eaton says. “From calendar reminders to AI assistants to the banking apps themselves, there’s no shortage of options.”
If you don’t want the tech-savvy approach, old-school money ways can be just as successful. “In fact, I still know people who rely on a post-it note stuck to their computer screen,” adds Eaton. “Just find a system that works for you, and ‘train’ yourself to follow it.”
Beyond the due date, responsible credit card use is also vital. “It’s important to be honest with yourself and your spending habits,” says Eaton. “Credit cards are a tool — a financial tool — and you need to find the right tool for your lifestyle. The best credit card for your neighbor could be a horrible fit for you — and vice-versa.”
