Do you want to get a new credit card? Are you confused about the billing cycle? Charges, interests, due date, grace period – we’ll discuss all these points briefly with billing cycle meaning. Having a credit card is great, but you should use it carefully.
Without appropriate knowledge, you might face a lot of trouble paying your credit card debt. So, this article will acknowledge you about how the billing cycle of a debit card works.
You should be concerned about these points before you get a new credit card. Reading the article would help you know if you can abide by the payment system of credit cards.
Credit card billing cycles are typically 30 days. The starting of the billing cycle could set any date of a month. It depends on the date of the 1st transaction done on your credit card and then 30 days from there.
When you do your 1st transaction, your billing cycle has started, so now, you are free to do as many transactions as you want within your credit limit. After 30 days, when your billing cycle ends, the bank will generate a bill of a total amount of all your transactions over the last 30 days, and you will be notified via call or will be sent to you via mail. You can also check the banking application of your respective bank for the statement balance.
The billing cycle of all the banks is almost the same, so provided you go through this article carefully, no matter what credit you choose, the criteria will be the same.
A billing cycle meaning the collection of all your transactions done using your credit card over the past 30 days. So provided you are aware of your billing cycle, it would be more convenient for you to know when the bank will generate your billing cycle. Eventually, that will help you stay prepared to pay the credit card bills.
- Starting your billing cycle to the day when your balance is generated is called the statement period. After that, you get a due date within which you have to pay the billed amount of the last statement period.
However, if you are about to get a new credit card and looking for the best credit card in India, what do you expect? Benefits? Offer? Rewards? You can check out the Bajaj Finserv RBL Bank Supercard that offers exceptional features packed with a power of 4 cards. It has a billing cycle of upto 25 days with cashback and rewards on almost every transaction you make. Dive into the details if you want to know more about the card.
When you get a due date to pay your billed amount, the due date is usually after 19-21 days from the day your balance statement is generated, depending upon your bank.
For example, assume your billing cycle starts on 11th June, ending on 10th July. Then your due date will be 29th or 30th July, depending upon your bank. Your next billing cycle has already started from 11th July, which would end in the next 30 days. It’s just the bank gives you some time to arrange the funds and pay the bills.
The same billing cycle is followed every month. You get the grace period each month, and the end date of your grace period is your due date.
- Provided your statement generation date is a holiday. The statement might be generated early by 1-2 days or delayed by 1-2 days, again depending upon your bank.
Some banks generally brag about their 48 days scheme, according to which you can repay the spent amount from your credit card in 48 days.
The scheme is not fully true or false. However, provided you understand the bank’s billing cycle terms and conditions correctly, you’ll know that the statement is true but not totally.
So let’s discuss the billing cycle meaning of a credit card considering this scheme.
If your credit card is already active and regularly being used, and you spend some money using your credit card, it depends on the due date of your respective credit card how many days are left for the repayment.
Provided you spend some money before one day of your billing date, you’ll have only 19-20 days to repay the amount. These days will be your grace period.
So, even if you have the best credit card in India, to get the best value out of your credit card, you have to use it in the best way possible. For example, if you spend from your card right the next day after your billing date, you’ll have nearly 48 days to repay the amount. So here you use the fullest of your credit card.
You’ll not compulsorily get 48 days to repay the amount each time you spend with your credit card.
- If you need to buy something or make a heavy transaction using your card and the billing date is too near, it would be best to skip a couple of days and use it after the billing date.
What is a Minimum Due Amount?
When you get the balance statement after the statement period, you also get a minimum due amount, which you can pay if you don’t have the full money. So, as a result, the Cibil Score of your credit card wouldn’t go down, and your card wouldn’t get blocked.
But you should strictly avoid paying the minimum due amount; nevertheless, you have the best credit card in India. Because after paying the minimum due amount, you’ll get charged for the remaining amount at an interest rate of 5% to 20% or even more, according to your credit card.
And the bill would be even more with the remaining amount and added interest in the next month’s balance statement. So, when you spend money from your credit card, analyze your due date and make sure you can repay the amount within the due date.
Find more Blogs on Blogger Sign in