Episode Transcript
[00:00:00] Speaker A: It is Take Control Tuesday. That means Mansa Moussa is on the phone with me. Manta, we've been talking about credit cards and it's so much information to know and to utilize. But today is really important because we're talking about important credit card dates to know right now.
[00:00:18] Speaker B: Once again we're going to start off with what we always say is that a well managed credit card is one in which you pay the statement balance in full every month by the due date.
So this is what we're talking about. But here are the dates you need to know. First one we said was the due date. The due date is the date that your credit card bill is due. Generally the due dates are set the 4th of the month, the 12th of the month, etc. But every month by that date you have to pay your credit card. And if you don't pay it by that date, either the minimum payment or the the full balance, you will be considered late. So the due date of your credit card you should know. Now the other date you should know is the closing date. What the closing date is is the date that the credit card closes its accounts for that month.
So for example, on a credit card I have the closing date is the 26th of the month.
Which means all charges after the 26th of this month won't be billed in the June statement. Let me say that again.
The closing date is the date that charges for the current billing cycle. Let me put it that way. Stop. Here's why it's important to know your closing date. If your credit card closes on the 4th of May, then that bill is going to be due in June.
[00:01:59] Speaker A: Got it?
[00:02:00] Speaker B: Okay. So if I purchase something on the 5th of the month or later rather than the 4th of the month, that charge won't be tabulated and billed until June, which means I won't have to pay it until July.
[00:02:20] Speaker A: I got it.
[00:02:21] Speaker B: I hold my money additional 30 days. Once again you're going to pay the bill. This is not leveraging time, this is keeping your money for 30 more days. So just by knowing your closing date, you can extend the time before you have to pay for something by more than 30 days. And the thing about that Randy, is if you have more than one credit card, which we've talked about, with different closing dates, different due dates, you can spread your charges out and manage your cash flow much better. Rather than having a thousand dollar bill due one time a month, you can manage it. So you have a $250 bill four times. It's the same thousand dollars, but you don't have to pay it in a lump sum. Cash flow, your income, your outlook. It's easy to manage once you know those two dates. Your due date, when payment is due by, and your closing date. What's the last day that a charge is billed to the current billing cycle?
[00:03:31] Speaker A: Man, that makes so much sense. And you can, if you need to, use the card, do it strategically.
[00:03:37] Speaker B: Make it work for you.
[00:03:38] Speaker A: Absolutely. Make sure you get all that information at take control Tuesday.com and and make sure you share it with your friends and family because it is that important. Thank you so much, Manta.
[00:03:50] Speaker B: Thank you.
