A credit card billing cycle is the time period between your credit card billing statements. The length of your billing cycle varies from card issuer to card issuer. Usually, the length of credit card billing cycle ranges from 27 to 31 days. At the end of every billing cycle, your statement is compiled by your credit card provider and sent to you along with the due date.
Let’s understand this with the help of an example:
Assume that your credit card billing cycle is of 30 days and your credit card statement is generated on the 10th of every month. So, your billing cycle will begin on 11th of the previous month and end on the 10th of the current month. All the transactions done within a billing cycle will reflect on your credit card statement, which includes, online payments, cash withdrawals, ongoing EMIs and more.
The credit card due date is calculated based on your credit card billing cycle. The due date is the last date until which you are required to pay your credit card bill. It is usually after 15 to 25 days from the statement date. For example, your credit card statement is generated on 5th of every month and your due date is 25th of the same month. This means that you have to pay your bill till 25th of each month and no charges will be levied if you pay your bill within the given time frame. If you don’t pay the minimum amount due or total amount due, then late payment charges will be levied on your card.