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Credit Card Billing Cycle.

Understanding Credit Card Billing Cycle

Credit Card Billing Cycle

It can take years to understand the usage of credit cards and their functions. Sometimes, despite understanding the basic characteristics of credit card, one may not even know how one can be affected by the credit card.

The following details will explain the credit card billing process from start to finish.

Understanding credit card billing cycle:

Why do you need to understand credit card billing cycle?
The main purpose is to gain maximum credit period. If you can understand simple calculation of days in your credit card billing cycle, you can use your credit days on your credit card at most advantages.
There are 2 most important dates you need to remember for your credit card billing.

  • Credit card billing date
  • Credit card due date

Credit card billing date:

Credit card billing date is something when your credit card bill will be generated in each month. It can be 1st of every month, 15th of every month or any other date. You will be notified with a SMS and email alert as soon as your billing gets generated for the specified month. This date will be constant for each month. It may vary by 1 or 2 days based on the total number of days in a month, i.e. 30 or 31 days.

This bill will contain a list of items you have purchased from previous billing date to current billing date.

Credit card due date:

Credit card due date is the last day to pay your credit card bill amount. If you don’t pay your latest credit card bill amount on or before the mentioned credit card due date, you will be charged a huge sum of interest amount, processing fee, late payment fee, etc.

Example to understand credit card ‘billing date’ and ‘due date’:

Credit card billing date:

17th March, 2013.

Means, your credit card bill will be generated on 17th of every month.

Credit card due date:

4th April, 2013.
This is the due date on or before you need to pay your credit card bill amount for the credit card bill generated on 17th March, 2013.

Get maximum credit period from your credit card like this:

If you calculate number of days from billing date to due date, it will be 13 days [from 18th to 31st in March] + 4 days [1st to 4th in April] = 17 days. That means, you actually get only 17 days time to pay.

What does it meant by 40 or 50 days credit period then?

Let’s consider, you purchase an item on 18th of March. Your credit card bill for the month of March was already generated on previous day i.e. 17th of March. Since you purchased after the billing date, your new purchased item will be update on next month bill which is, 17th April.

For all the items you purchase on the next day of your billing date, you will get the maximum credit period.

Responses (15)

  1. Prashanta Kr Pal
    April 7, 2017 at 7:42 pm · Reply

    Sir,I want to know if a card provider says “Interest free credit period: 20-50 days” then what does it mean?

  2. Name (required)
    March 27, 2017 at 10:10 am · Reply

    Hi sir, i wanted to know my credit card billing cycle. where it is mention i dont no. its my new card, and i called customer care also only IVR option is there, call not connected to Customer care, Can anyone help please how to know my billing cycle because i need to draw amount?

    • Pradeep Daram
      April 3, 2017 at 4:11 pm · Reply

      When did you receive your email statement? If you have not received single credit card statement yet, I would suggest you to wait to get generated one. After going through the dates mentioned in your credit and read this same article, I am surely it will make sense to you to understand your credit card billing cycle. If it doesn’t feel free to revert.

  3. Nithin
    March 17, 2017 at 6:58 pm · Reply

    Say my bill date is 17th
    And I make a transaction on the 18th at the early hours say 12:45 am.
    That will be reflected on the next billing cycle only right??

    • Pradeep Daram
      March 20, 2017 at 8:53 am · Reply

      Yes. You are perfectly right on your credit card billing cycle.

  4. Rakesh shukla
    December 9, 2016 at 10:04 am · Reply

    Plz provide my billing cycle

    Card no 5172526727399490

  5. Dennis
    November 16, 2016 at 1:10 pm · Reply

    Hi ,

    My statement date is on 16th of every month , so if i spend on 16th will it include in present bill or will it be included in next bill.

    • Pradeep Daram
      December 11, 2016 at 9:10 am · Reply

      Since statement will be generated at the end of the day, just to be on safe side, you can purchase items on 17th so that, it will be included in the next cycle.

  6. Name (required)
    December 10, 2014 at 12:00 pm · Reply

    how to check my bill cycle

    • Pradeep Daram
      December 16, 2014 at 3:28 pm · Reply

      If you observe any of your credit card statement, you can easily figure out your credit card billing cycle. The statement date is always constant.

  7. Govindkumar
    January 2, 2014 at 6:29 am · Reply

    My credit card no.4377486985144516
    Statement Gmail address

  8. Govindkumar
    January 2, 2014 at 6:22 am · Reply

    Good card sbi

  9. Ramjan Thapa
    December 18, 2013 at 4:42 am · Reply

    Credit card No 43XX XXXX XXXX XX 88 Satetenent….

  10. Atul P Ughreja
    December 10, 2013 at 10:43 am · Reply

    Credit card No 43XX XXXX XXXX XX 41 Satetenent in Email Addreess

    • Pradeep Daram
      December 11, 2013 at 10:02 am · Reply

      Hi Atul, I didn’t understand what you are looking for?I didn’t receive any statement. BTW, don’t display your full credit card number anywhere on website(s). Being moderator of this website, I have edit your credit card number and marked with XX in between.Next time onward(s) don’t enter your credit card number anywhere. Just for safety of your credit card. Please let me know how can i help you to understand credit card billing cycle..

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