The Difference between Credit Card Billing Cycle and Statement Due Dates

by ankushdayal

The Difference between Credit Card Billing Cycle and Statement Due Dates

Do you own a Credit Card? If yes, you must be aware of the many terms and dates associated with your card. Amongst all this literature, the credit card cycle of billing and the statement related to the monthly are two key terms you need to be well aware of. Understanding them and how they relate enables you to effectively manage your Credit Card account, avoid unnecessary charges, and maintain a good credit score.

In this guide, you’ll learn the difference between the Credit Card billing cycle and the statement due date. You will also understand the grace period and the best time to pay off your Credit Card balances to avoid interest charges and keep your credit utilisation rate low.

What is the Credit Card billing cycle?

The Credit Card billing cycle is the period between two consecutive Credit Card statement dates. It usually lasts about 28-30 days, depending on the Credit Card company. Some of them may offer longer Credit Card billing cycles compared to others.

All purchases made with your Credit Card will be charged to your account during the Credit Card billing cycle. Your Credit Card issuer will generate a statement after the billing period, including your balance, any interest charged, and the minimum payment required. Depending on your preferences, this statement will be mailed or emailed to you.

What is a Statement Due Date?

The statement due date is the deadline for paying your Credit Card balance in full or the minimum balance required. This date is usually around 21-25 days after the end of the billing cycle, but it can vary from one Credit Card company to another.

You will not be charged any interest if you pay your Credit Card balance in full by the statement due date. However, if you only make the minimum payment or fail to pay by the due date, you will be charged interest on the remaining balance.

What is the grace period?

The grace period is the interval between the end of the billing cycle and the statement due date. You can pay off your bill in full during this period without incurring any interest charges. The length of the grace period also depends on the Credit Card company and the terms and conditions of your specific account. Some Credit Cards have a longer grace period, while others do not offer anything at all.

When is the best time to pay your Credit Card balance?

To avoid interest charges and other fees, paying your Credit Card bill in full and on time is essential. The best time to pay is before the statement due date since this ensures that your payment is received and processed before the due date. Paying your Credit Card bill on time can also help you maintain a good credit score since payment history is one of the most important factors in determining your credit score.

Also Read: What Is Credit Card Balance Transfer and How Does It Work?

Late payments can have a negative impact on your credit score. With a bad credit score, you can fail the Credit Card eligibility criteria set by Credit Card issuers. However, some Credit Card companies can help you improve your credit score so that you can avail credit facilities in the future hassle-free.


Remember, maintaining a high credit score and paying off your Credit Card balance is essential to your financial goals. When you pay your Credit Card balance entirely on time, you can avoid interest charges and become eligible for higher credit limits. It’s also important to be aware of the grace period, Credit Card billing cycle and the specific terms and conditions of your Credit Card account to maximise your card benefits.

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