Dear Liz: If I’m given a 10-day grace period for making a payment and pay the bill on the last day of the grace period, will it still be treated as an on-time payment on my credit reports?
Answer: Typically, yes. In fact, most creditors won’t report you to the credit bureaus as overdue until your payment is 30 days or more overdue.
That’s not to say you should treat due dates casually. Missing the due date (or the end of the grace period, if that’s different) will typically trigger a late fee and could lead to higher interest rates.
You would be smart to make sure your payment reaches your creditor a day or two before the end of the grace period. Using electronic payments rather than the mail can help you time your transactions more precisely. Online or automatic payments also leave an electronic trail that can prove when you paid.