Does Changing Credit Card Due Date Affect Credit Score?

Credit card due dates and their effect on credit scores are a common area of confusion. Understanding how these dates function within credit reporting and scoring models helps individuals manage finances and make informed credit decisions.

Direct Impact on Credit Score

Changing a credit card due date does not directly impact your credit score. Credit scoring models, such as FICO and VantageScore, do not consider the specific day your payment is due. These models are concerned with whether payments are made on time, not the exact scheduled date.

The date change shifts when your payment is expected, without altering the financial behavior reflected in your credit report. For instance, if you change your due date from the 5th to the 20th, credit bureaus update their records to reflect the new due date. This adjustment is administrative and does not inherently reflect positively or negatively on your creditworthiness.

Key Factors Influencing Your Credit Score

Credit scores are based on several factors, with payment history and amounts owed being the most significant. Payment history, which indicates consistent on-time bill payments, accounts for approximately 35% to 40% of your FICO and VantageScore credit scores, respectively. This category examines your track record of making payments as agreed, including any late payments, delinquencies, or bankruptcies.

Credit utilization, the amount of credit you are using compared to your total available credit, is another significant factor, accounting for 30% of your FICO score and 20% of your VantageScore. A lower utilization ratio, below 30%, indicates responsible credit management and positively influences your score. Other factors include the length of your credit history (approximately 15% for FICO), the types of credit you use (credit mix, 10% for FICO), and new credit applications (10% for FICO).

Practical Implications of Changing Your Due Date

Changing your credit card due date can be a strategic financial move, even if it doesn’t directly affect your credit score. The primary benefit is its ability to help you manage finances more effectively and avoid actions that negatively impact your credit. Many card issuers allow you to change your due date, often through their online portal or by contacting customer service. Some issuers may limit how often you can make this change, for example, once every 90 days.

Aligning your credit card due date with your pay schedule ensures sufficient funds are available when payment is due. This alignment reduces the risk of late payments, which are reported to credit bureaus if 30 days or more past due and can significantly harm your credit score. By preventing late payments, changing your due date indirectly supports a positive payment history, a major component of your credit score. It can also simplify budgeting by allowing you to consolidate or stagger bill payments, providing greater control over your monthly cash flow.