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Billing Cycle

Updated on October 4, 2023

A billing cycle refers to the specific time period during which your credit card transactions are recorded, and a statement is generated summarizing your activity and outstanding balances. It is a set duration, usually around 30 days, during which your credit card transactions are tracked. It starts on a specific date and ends on the same date in the following month.

Understanding the Billing cycle in detail

This statement provides a detailed summary of all the transactions made during that cycle. During the billing cycle, you can make multiple transactions up to your credit limit. The credit card statement includes information such as the date and description of each transaction, the merchant’s name, the amount spent, the available credit limit, the minimum payment due, and the due date for paying the bill. If you carry over an unpaid balance from the previous billing cycle, interest charges will be calculated on that amount and added to the new statement. The interest rate applied to your outstanding balance is the Annual Percentage Rate (APR) divided by the number of days in a year. The specific date on which your billing cycle starts and ends may vary depending on your credit card company’s policies. It’s essential to be aware of these dates to effectively manage your credit card activity.