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Credit Cards
What is Credit Card Billing Cycle and How it Works ?
2 mins Read | 4 Years 1 Month Ago
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 is the Credit Card Billing Cycle?
The Credit Card billing cycle refers to the fixed period during which transactions are recorded for statement generation. It is also known as the statement cycle.
In simple terms, the billing cycle meaning in a Credit Card context, is the duration between two statement dates. All purchases, cash withdrawals and payments made during this period appear in that month’s statement.
For example, if your statement date is the 4th of every month, your billing cycle may run from the 5th of the previous month to the 4th of the current month. Understanding what is billing cycle in Credit Card usage helps you plan repayments efficiently.
How does the Credit Card Billing Cycle Work?
The Credit Card bill generation date marks the end of your billing cycle. On this date, your statement is generated with a summary of transactions and the total outstanding amount.
After the statement is generated, a Credit Card payment due date is provided. This is the last date to pay your outstanding amount without additional charges. Knowing your Credit Card billing date helps you avoid missing the Credit Card due date.
If you choose not to pay the total amount for any unforeseen reasons, it is advisable to clear the minimum due in Credit Card bill. The minimum amount due in Credit Card is required to keep the account active. However, interest may apply to the remaining balance.
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?
The Minimum Amount Due (MAD) is the lowest payment your bank requires you to make by the payment due date, as mentioned in your monthly Credit Card statement. Paying at least this amount helps you avoid late payment fees and keeps your card account regular for that billing cycle.
However, if you choose to pay only the Minimum Amount Due and not the total outstanding amount, interest will be charged on the remaining unpaid balance. Interest may also apply to new purchases made on the card, as per the applicable terms and conditions.
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, you can call Customer Care on 1800 1080 from your registered mobile number, use ICICI Bank Internet Banking or the iMobile, or visit any ICICI Bank branch. This process is the same for co-branded cards such as the Amazon Pay ICICI Bank Credit Card and the MakeMyTrip ICICI Bank Credit Card.
Via ICICI Bank iMobile app:
Login > Cards and Forex > Choose Credit Card > View Statement > Manage Billing Cycle
Via Retail Net Banking (RIB):
Login > Cards > Credit Cards > Manage Credit Card > Manage Billing Cycle
Once approved, the new billing cycle will be effective from the next statement period.
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.
Via ICICI Bank iMobile app:
Login > Cards and Forex > Choose Credit Card > View Statement
Via Retail Net Banking (RIB):
Login > Cards > Credit Cards > Manage Credit Card
Your billing cycle details are mentioned in your Credit Card statement. You may also contact Customer Care on 1800 1080 for assistance.
Will my Credit Card’s due date change every month?
No, your Credit Card due date does not change every month. It remains fixed based on your defined statement cycle.
The due date will remain the same unless your billing cycle is changed or modified as per your request.
T&C
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.