Owning a credit card and using it is a very easy task, difficulty arises when it comes to billing date and due date. Most individuals get confused which results in delay in payment. Only understanding how to make maximum benefit out of credit card wont help unless you understand when to pay your bill. Click to know how interest rates on credit card are calculated?
Let us understand the difference between them and when to make payment. Here we need to consider two main dates that is:
- Credit Card Billing Date
- Credit Card Due Date
Credit Card Billing Date
Credit card billing date is a date when your bill is generated. You will be notified with a SMS and email alert as soon as your billing gets generated. Billing date may vary, it may be 1st or 15 or any other day in a month. However, the date will be constant for every month. It can vary one or two days depending on the number of days in a month. He bill will have all the information of you purchases.
Credit Card Due Date
Credit card due date is a date which will be the last day to make payment of your credit card amount. In case if you fail to pay on that day, you will be charged a big sum of interest, processing fee, late payment fee, etc.
To make it simple, let us consider an example:
Billing date 15th March, 2014: Means, your credit card bill will be generated on 15th of every month
Due date: 5 April, 2014: You need to pay the amount on or before this date for the bill generated on 15 March.
What if you purchase something on 16 March, this purchase will be reflecting in your next billing date.
What is Grace Period?
This is interest free period, varies with every credit card and usually is between 20 to 60 days