When you have a credit card, there are 4 important dates that you should know that are crucial for your usage.
These dates are important so you can avoid late fees, penalties, and interest charges while handling your credit.
1. Billing cycle: This is the period when all purchases and charges are attributed to a single monthly bill.
2. Statement closing date: The date when your credit card statement is generated with the previous month's expenses.
3. Payment due date: The last day to make the minimum payment to avoid late fees and other penalties.
4. Annual fees due date: If your card comes with an annual fee, you'll need to pay this once a year.
The period between closing date and due date is the grace period where you must make your balance payment.
Making balance payments on time and in full will help you avoid additional charges and improve your credit score.
In case you have made a late payment, try to stay on track with future payments to work on building your score back.