What is Credit Card Billing Cycle and How it Works ?

If this is your first time using a Credit Card or applying for it, the idea of billing cycles might seem a bit confusing. Moreover, you might have noticed that the billing cycle is not the same for every Credit Card, which can lead to further confusion. So, the Credit Card billing cycle is explained here in detail to help you understand better.

What exactly is a Credit Card billing cycle and how does it work?

The credit card billing cycle, which is also called the Credit Card statement cycle, refers to the period during which the bills are generated. Every transaction that is carried out in this period will be mentioned in the card statement for the month.

For instance, when the billing or statement date of the Credit Card is the 4th of each month, the billing cycle will typically start from the 5th of the previous month to the 4th of the present month. Every payment, cash withdrawal and purchase made by you during this period can be tracked in the statement when the billing cycle ends.

Let’s say the Credit Card statement was generated on March 6. It has all the transactions completed between February 5 to March 6. All transactions after the mentioned statement date, i.e., March 6, will be considered in the billing statement for the next month. The credit billing cycle not only differs from one bank to another but also varies from one customer to another. For example, the billing cycle for ICICI Bank Credit Cards differs from one user to the other. In fact, the Bank even lets the users change and choose their billing cycle online.

Credit Card statement date or billing date

The statement date or billing date refers to the date on which that statement is generated each month. Typically, it is the final day of the billing cycle for any given month. All transactions done through the Card after the billing date are reflected in the succeeding billing statement.

What is the ‘Minimum Amount Due’ on a Credit Card?

When you are unable to pay the entire outstanding amount on the Card for a particular month, you have the option to pay a smaller portion of your dues to avoid the late penalty. A small part of the amount, which is technically known as Minimum Amount Due (MAD), is decided by the Credit Card issuer. The Minimum Amount Due is mentioned in the Credit Card statement for the month.

How to know the due date of ICICI Bank Credit Card?

You can find the due date of your ICICI Bank Credit Card in your monthly Credit Card statement or by logging into the iMobile app or Internet Banking. It’s important to pay your dues before this date to avoid late fees or penalties. Paying just the Minimum Amount Due helps avoid late charges, but interest will still apply on the remaining balance. To stay on track, set reminders or enable payment alerts for timely payments.

What is the ‘Last Billed Due’ of an ICICI Bank Credit Card?

The ‘Last Billed Due’ is the total amount due from your previous Credit Card statement. It includes purchases, interest and any other charges billed during that cycle. Paying this amount in full by the due date avoids interest charges and keeps your ICICI Bank Credit Card in good standing.

How to change your ICICI Bank Credit Card billing cycle?

To change your ICICI Bank Credit Card billing cycle, call Customer Care on 1800 1080 from your registered mobile number or visit any ICICI Bank Branch. Provide your Credit Card details and request the change. Once approved, the new billing cycle will start from the next statement period.

Conclusion

Now that you understand the billing cycle and other related details, you will find it easier to understand your Credit Card statement. Remember to pay your Credit Card dues every month without fail to get the maximum benefits out of your Card.

FAQs

Can I change my Credit Card payment due date?

Yes, as per the latest regulatory guidelines, you can change your ICICI Bank Credit Card due date once every few months, as needed. It can be done easily by placing a request via Customer Care, the iMobile app or Internet Banking.

How can I know about my Credit Card billing cycle?

The process of knowing your Credit Card billing cycle is very simple. It can be seen on your monthly Credit Card statement via the iMobile app, Internet Banking or by calling Customer Care on 1800 1080.

Will my Credit Card’s due date change every month?

Yes, the due date may vary slightly, depending on the number of days in a month and your billing cycle. However, it stays close to the same date.

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