Understanding the Importance of Your Credit Card Cut-Off

Having a credit card seems to be a necessary evil these days. Nearly everyone has one or knows someone who does. Plastic money is just easier to spend. Nearly every establishment takes credit cards as a form of payment, making it easy to use them to purchase groceries, clothing, fuel, and an entire medley of other items. If you are like many consumers, you have more credit card debt that you would like. You probably even have difficulty paying your bill in full at least part of the time if not all of the time. Wouldn’t it be nice if you could pay off even just one of your credit card bills in full when it arrives? This is why it is so critical to understand the importance of your credit card cut-off date for purchases.

What Is the Credit Card Cut-Off Date?

All credit cards have a monthly billing cycle with a starting date and an ending date. During this time, cardholders can make purchases, which will become due and payable on the next bill. The starting and ending dates of each billing cycle are usually the same. For example, your billing cycle might begin on the 19th  of the month and end on the 18 th . With this scenario, any purchases that you make up until the 18th of the month should appear on the very next bill that you receive.

The Benefit of Waiting Until After the Cut-Off Date Has passed to Make a Purchase

If you are close to the ending date of your billing cycle, it’s a wise idea to simply wait until the day after this date to make your purchase. This simple strategy gains you an additional billing cycle to save up the money you need to pay off that particular purchase. For example, you might need to purchase new soccer cleats for your son or a new microwave to replace a broken one, and the cut-off date for your billing is three days away. If you can wait until after the cut-off date has passed to make the purchase, you can gain 5 to 6 weeks before you need the money to pay for that purchase. If money is tight in that particular month, this strategy can ease your financial burden at least temporarily.

Changing the Due Date on Your Card

If you are like many people today, you live from paycheck to paycheck. You probably also find yourself juggling your money and your bills in order to meet payment due dates. Instead of struggling to have enough money to cover bills that all fall due during the same week each month, why not consider asking to have one or more of these due dates changed? Typically, it is easier to have the due date on a credit account changed more easily than one that is attached to an installment loan or mortgage. Just call up your lender and request the change. Once you have your new due date, make sure that you also find out what your new starting and ending dates on the billing cycle are.



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