Credit card billing cycle refers to the period between two billing statements, during which you make purchases and payments on your credit card. Understanding your credit card billing cycle is crucial to managing your finances effectively and avoiding late fees and interest charges. Here is a brief guide on what is credit card billing cycle and how to change it.
What is Credit Card Billing Cycle?
A credit card billing cycle typically lasts between 28 to 31 days. During this period, you can make purchases on your credit card and accumulate a balance. At the end of the billing cycle, the credit card issuer sends you a statement that shows your balance, minimum payment due, and the due date for payment. The billing cycle starts on the same day each month, known as the statement date.
The due date for payment is typically 21 to 25 days after the statement date. If you pay the full balance by the due date, you won't incur any interest charges. However, if you carry a balance, interest charges will be applied to the outstanding balance.
How to Change Your Credit Card Billing Cycle?
If you want to change your credit card billing cycle, you can contact your credit card issuer and request a change. Here are the steps to follow:
Call your credit card issuer: You can find the customer service number on the back of your credit card or on your monthly statement.
Request a change: Explain to the representative that you would like to change your billing cycle and provide the reason for the change.
Provide the preferred start date: Let the representative know the date you would like your billing cycle to start. Make sure to choose a date that is convenient for you and aligns with your pay schedule.
Confirm the details: Make sure to confirm the new billing cycle start date, the due date for payment, and any other details with the representative.
Follow up: Check your next statement to ensure that the billing cycle has been changed as requested.
In conclusion, understanding your credit card billing cycle is essential to managing your finances effectively. If you need to change your billing cycle, you can contact your credit card issuer and request a change. Make sure to choose a start date that aligns with your pay schedule and confirm the details with the representative. By managing your credit card billing cycle effectively, you can avoid late fees and interest charges and keep your credit score in good standing.