Credit cards are a useful payment option that allows you to buy now and pay later. Every month, you are invoiced for the transactions you made during a specific billing cycle. To restore your credit limit and avoid payment default, you should repay the bill before the due date. Let’s learn how to know the credit card bill date and its cycles, along with other important aspects.
Understand a Credit Card Billing Cycle
The credit card billing cycle is the period during which all transactions on your credit card are recorded for billing purposes. This is also known as the statement cycle. At the end of this cycle, a statement is generated listing all transactions made from the card.
Suppose your statement date is the 4th of each month. The billing cycle usually runs from the 5th of the previous month to the 4th of the current month. During this period, all purchases, payments and cash withdrawals are included in the statement issued at the end of the cycle.
How the Credit Card Billing Cycle Works
Following are the details of how a credit card billing cycle works:
- The billing cycle begins from the day your credit card is activated, and your initial statement will show a zero balance
- If you transfer a balance to your new card, balance transfer charges may appear on your first statement
- From the activation day, all transactions you make will be recorded and added to your credit card bill
- Any cash withdrawals using your credit card will also include cash withdrawal fees in the statement
- Payments or credits like fuel surcharge waivers or payment reversals will be deducted from your bill
- Transactions made after the closing date of the billing cycle will appear in the statement for the next billing cycle
Key Aspects of a Credit Card Billing Cycle
You can consider the following few points about a credit card’s billing cycle:
- Billing cycles last 28–31 days
- The cycle duration remains consistent monthly
- Pay dues before the cycle’s due date
- Due dates fall within 21 days of cycle closing
- The grace period is the time between the cycle end and the due date
- No interest is charged if bills are paid in the grace period
- Interest applies for late payments beyond the grace period
- Billing cycle details are on the first page of your statement
How to Know Credit Card Bill Date
The billing date is when your statement is generated, and it’s different from the payment due date. You receive the bill on the billing date, which is usually the last date of the billing cycle.
Credit Card due date
Issuers offer a 15 to 20-day grace period after the billing date. Your due date is when your grace period ends and when you need to make the bill payment. To avoid any confusion, your statement will generally mention this date. You should pay your credit card bill before this date to protect yourself from extra charges or any penalty.
Credit Card Minimum Payment
In case you cannot pay the entire due amount, you can pay the minimum due amount. This small due amount protects you from the late penalty. It is a part of your total outstanding dues for a particular month, often 5% of the billing amount.
The issuer decides that small part of the amount, which is called the Minimum Amount Due (MAD). It is mentioned in your credit card statement for the month. If you pay the minimum amount, your next month’s credit card bill will not have any late payment fees or negative points. However, you will have to pay heavy interest on the remaining amount.
How to Stay on Top of Your Credit Card Payments
Here are a few ways in which you can calculate the payment due date for the credit card:
- Opt for a minimum amount to pay monthly to avoid late fees, which is a percentage of your balance
- Understand the payment due date is typically 20–25 days after the billing cycle ends and plan accordingly
- Know the exact due date and minimum payment details, which are listed in your statement
- Paying the minimum prevents late fees but incurs interest on the balance, so plan your payment accordingly
- Use banking apps or online tools to help track and manage due dates
- Utilize the grace period of 15 – 20 days after the billing date to pay without incurring interest
- Paying the full amount clears dues and avoids interest charges
- Missing the due date attracts penalties and affects your credit score, so keep track and set reminders to avoid
- Automate payments to ensure timely credit card bill clearance
In conclusion, managing your credit card payments helps avoid fees and makes the most of your perks. Always check your billing cycle, due dates, and minimum payments to stay on track. A great credit card that helps you manage your payments and other aspects is the One Credit Card.
With the OneCard mobile app, you can manage all your card settings effortlessly. Adjust transaction limits and set usage preferences for domestic or international, online or offline, and contactless payments. This card also rewards you generously, offering 5X monthly reward points on your top two spending categories. Visit the website or download the app and apply now!
