current time The number of people using credit cards in India is in crores. It is possible that you may also be using one or two credit cards. Despite this, every day there would be an offer to get a new credit card from some bank or the other. However, very few people pay attention to the billing cycle before getting a credit card, even though it has a huge impact on your financial management. Let us know why special care should be taken while choosing the credit card billing cycle and which date is the right one to choose?
What is credit card billing cycle?
A credit card billing cycle is a specified period of time between two statement dates, usually around 30 days for credit cards. The bank tracks all purchases, cash advances and any fees associated with such transactions that occur during that cycle. At the end of the cycle, the bank generates the bill.
Why is it important to choose the right billing cycle?
- Keep the credit card billing cycle in the middle of the period when you have money on hand to pay the bill. This could be a period of one or two days after the salary arrives. Therefore, choosing the right billing cycle can help you pay your bills easily.
- When your billing cycle matches your pay day, you are able to better manage your budget and plan your expenses properly.
- Avoiding late fees: Choosing the right billing cycle helps you avoid the hassle of penalties. You are easily able to pay the bill on time.
- Improving Billing Psych makes it easier to manage multiple credit cards.
How to change credit card billing cycle?
Contact your credit card issuing bank: You can contact your credit card issuing bank and ask to change your billing cycle. After your request, the bank will change your billing cycle after taking necessary information.
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