Due Date
Financial term in the General category
Definition
The date by which the minimum payment must be received to avoid late fees and maintain grace period. Typically 21-25 days after statement closing date, as required by law.
Related Terms
Minimum Payment
The smallest amount you must pay each month to keep the account in good standing, typically 1-3% of the balance or $25-35, whichever is greater. Paying only the minimum results in expensive long-term interest.
Late Fee
A penalty charged when the minimum payment isn't received by the due date. Can be up to $41 for repeated late payments. Also triggers penalty APR and damages credit score.
Grace Period
A period after a payment due date during which you can pay without penalty. Credit cards typically offer 21-25 days; student loans often offer 6 months after graduation.
Frequently Asked Questions
What is Due Date?
The date by which the minimum payment must be received to avoid late fees and maintain grace period. Typically 21-25 days after statement closing date, as required by law.
Why is Due Date important in personal finance?
Due Date is an important general concept that helps individuals make better financial decisions. Understanding Due Date can improve your financial planning and help you achieve your money goals.
How does Due Date relate to Minimum Payment?
Due Date and Minimum Payment are related financial concepts. The smallest amount you must pay each month to keep the account in good standing, typically 1-3% of the balance or $25-35, whichever is greater. Paying only the minimum results in expensive long-term interest.
More General Terms
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