What is the credit card billing cycle?

Definition:

The credit card billing cycle is the period of time between billing statements. The length of the billing cycle varies by card issuer, but it is typically around one month.

Definition and Example of Credit Card Billing Cycle

The credit card billing cycle is the time between statements. At the end of the billing cycle, your statement is compiled by your credit card issuer, and you have until the due date to make a payment on your credit card. Credit card billing cycles vary and typically range from 28 to 31 days, depending on the credit card and issuer.

For example, if you have a credit card with a 28-day billing cycle, you can expect to be billed for any charges or unpaid fees that occur during those 28 days.

How the Credit Card Billing Cycle Works

Although billing cycles vary by card issuer, they must be consistent, according to federal law. According to the Consumer Financial Protection Bureau (CFPB), billing cycle days cannot vary by more than four days from your normal billing date. For example, your billing cycle may start on the first day of the month and end on the last day of the month, or it may span from the first Wednesday of one month to the first Wednesday of the next month.

During your billing cycle, any purchases, credits, fees, or finance charges are posted to your account and added to or deducted from your balance. At the end of the billing cycle, you are billed for all charges and unpaid fees incurred during that billing cycle. Any activity on your account after the billing cycle ends will appear on the next billing statement.

Check your most recent credit card statement or your online account to find out your credit card billing cycle. If you need to count the number of days in your billing cycle, count the days between the start and end of your last billing cycle.

Note: Checking your account online between billing statements can help you stay aware of your available balance and allows you to spot any unauthorized charges.

Due Payment Dates

Your credit card payment due date is typically around 21 to 25 days after the end of your billing cycle. The time between the end of your billing cycle and your payment due date is known as the “grace period.” Generally, you can pay your balance in full before the end of the grace period to avoid paying interest on your balance. You may not receive a grace period if you do not pay your full balance after the previous billing cycle or if you carry a balance or cash advance.

Note: By law, your credit card due date must be the same date each month and does not affect the start or end of your billing cycle.

Your credit card account will be reported to at least one of the three major credit bureaus: Equifax, Experian, or TransUnion. Your credit report includes an overview of your account and details on how you manage your credit card, including your payment history, credit limit, and monthly payment.

Your credit card issuer will update your credit report at the end of the billing cycle, which is also the statement closing date. Your standing on the last day of the billing cycle is how it is reported to the credit bureaus.

If you want your credit report to reflect a zero balance on your credit card quickly, pay it off before the last day of your billing cycle. Otherwise, it will take another cycle for a zero balance to appear on your credit report, provided that you do not make any additional purchases on your card.

Taking

Key phrases:

• The credit card billing cycle is the period of time between billing statements.
• The length of the billing cycle varies by card issuer, but is typically about one month.
• At the end of the billing cycle, your statement is compiled by your credit card issuer, and you have until the due date to make a payment on your credit card.
• Credit card billing cycles are different and typically range from 28 to 31 days, depending on the credit card and issuer.
• During your billing cycle, any purchases, credits, fees, or finance charges incurred on your account are posted and added or subtracted from your balance.
• At the end of the billing cycle, you are billed for all unpaid charges and fees incurred during that billing period.
• Check your most recent credit card statement or online account to find out your credit card billing cycle.
• Your credit card payment due date is usually about 21 to 25 days after the end of your billing cycle.
• The time between the end date of your billing cycle and your bill’s due date is known as the “grace period.”
• Your credit card account will be reported to at least one of the three major credit bureaus: Equifax, Experian, or TransUnion.
• Your credit card issuer will update your credit report at the end of the billing cycle, which is also the statement closing date for your account.
• If you want your credit report to quickly show that you have a zero balance on your credit card, pay it off before the last day of your billing cycle.

Source: https://www.thebalancemoney.com/billing-cycle-960690