According to Mint reports, credit card management involves understanding two crucial dates that serve different purposes in the billing cycle. The statement date is when the issuer generates the monthly bill and captures transactions covered in that billing cycle, while the payment due date is the deadline for paying the amount reflected in that statement. As explained by Amit Prakash Singh, Co-founder & CBO at Urban Money, the gap between these dates provides cardholders time to review their statement and plan repayment strategies. Recent data from CNBC Select and SurveyMonkey reveals that 44% of Americans living paycheck to paycheck have incurred late fees, interest or bank overdraft charges in the last six months while waiting for their next paycheck to arrive, highlighting the critical importance of understanding these dates.
As reported by Mint, the payment due date is the more critical date for credit management. Paying the total amount due on time helps avoid interest and late-payment charges, while paying only the minimum amount can leave significant outstanding balances and increase borrowing costs. Singh emphasizes that from a credit management standpoint, the payment due date is more important because it determines when the actual payment must be made. CNBC Select recommends several strategies for managing payments, including requesting the due date be moved to a more convenient time if it falls between paychecks, setting up auto-pay for minimum payments, and consolidating multiple cards into a two-card system with one flat-rate rewards card and another for bonus categories. The article notes that some issuers like Discover waive the first late fee (up to $41 thereafter) as a courtesy for good customers, though this doesn't provide a permanent solution.
According to Mint reports, skipping the payment due date should be avoided at all costs to maintain a healthy credit score. The conceptual understanding of these dates and the practice of on-time payment can help reduce borrowing costs while supporting healthier credit management. Cardholders should focus on the statement date to understand which transactions are included in a particular bill, and prioritize the payment due date to ensure total amounts are repaid on time. CNBC Select emphasizes that you can't (or shouldn't) skip paying your credit card bill even when struggling financially, but recommends avoiding fees through strategic card selection and payment planning.
For consumers struggling with fees, several credit cards offer fee-friendly features. The Citi Simplicity® Card provides no late fees or penalty APR, regardless of how many payments are missed, though it doesn't earn rewards. The Tilt Essentials Card requires no credit history and charges no annual fee, late fees, returned payment fees or foreign transaction fees, while offering 3% cash back on gas and groceries when enrolled in auto pay. The Chime Card™ offers no annual fee and no credit check required, with SpotMe® overdraft protection up to $200 without fees and 5% cash back on category of choice for Prime members. These cards can help consumers avoid common banking fees while maintaining credit access.
