What Is a Credit Card Billing Cycle?

Definition and Example of a Credit Card Billing Cycle

The billing cycle for a credit card is the time between billings. At the end of the billing cycle, your statement is compiled by your credit card issuer, and you have until your due date to make a payment on your credit card. Credit card billing cycles vary and usually range from 28 to 31 days, depending on the credit card and the issuer.

For example, if you have a credit card and it has a 28-day billing cycle, you can expect to be billed for any unpaid charges or fees that occur in those 28 days.

How a Credit Card Billing Cycle Works

Although credit card billing cycles vary by card issuer, they do have to be consistent, according to federal law. According to the Consumer Financial Protection Bureau (CFPB), the days in your billing cycle can't vary more than four days from the regular day or the date of your statement. For example, a billing cycle may start on the first day of the month and end on the last day of the month, or it may go from the first Wednesday of one month to the first Wednesday of the next.

During your billing cycle, any purchases, credits, fees, and finance charges are posted to your account and added or subtracted from your balance. At the end of the billing cycle, you are billed for all unpaid charges and fees made during the billing cycle. Any activity on your account after the billing cycle ends will appear on your next billing statement.

Check your most recent credit card statement or your online account to find your credit card billing cycle. If you need to calculate the number of days in your billing cycle, count the number of days between the beginning and the end of your last billing cycle.

Note Checking your online account between billing statements can keep you aware of your available credit and allow you to catch any unauthorized charges.

Payment Due Dates

Your credit card payment due date is generally about 21 to 25 days after your billing cycle ends. The time between your billing cycle end date and your billing due date is known as the "grace period." You typically can pay your balance in full before the end of the grace period to avoid paying interest on your balance. You may not receive a grace period if you didn't pay your balance in full after your last billing cycle or if you've transferred a balance or taken out a cash advance.

Note By law, your credit card due date must fall on the same date every month and does not have an impact on the start and end date of your billing cycle.

Your credit card account will be reported to at least one of the three major credit bureaus: Equifax, Experian, or TransUnion. Your credit report includes an overview of your account and details about how you manage your credit card, including your payment history, credit limit, and monthly payment.

Your credit card issuer will update your credit report at the end of the billing cycle, which is also your account statement closing date. Your account standing on the last day of your billing cycle is how it will be reported to the credit bureaus.

If you want your credit report to quickly show that you have a zero balance on your credit card, pay it off before the last day of your billing cycle. Otherwise, it will take another cycle for a zero balance to show up on your credit report, assuming you don't charge anything else to your card.

What Is a Billing Cycle, and How Long Is It?

Understanding how your credit card’s billing cycle works can help you manage your money and prepare for upcoming bills. You may even be able to use this knowledge to make strategic decisions that can give you more time to pay off purchases or improve your credit score.

A billing cycle—also called a billing period or a statement period—is the time between two statement closing dates. At the end of a billing cycle, your transactions from the billing period and previous balances are added together to determine your statement balance. The bill for your statement is usually due around three weeks later, although it depends on the credit card company. And the next billing cycle begins right away.

When to Pay Off Your Credit Card

There’s no need to wait for your due date if you want to pay your credit card early. Today’s online banking and mobile apps make it easier than ever to check your balance or make a payment anytime. And there are some extra benefits you might enjoy if you pay your bill early.

How Paying Your Credit Card Early Affects Your Credit Scores

Your credit card balance is part of what your card issuer often reports to the three major credit bureaus—Equifax®, Experian® and TransUnion®—at the end of every billing cycle. It’s used to calculate your credit utilization—that’s the total percentage of available credit you’re using. Credit utilization is an important factor that affects your credit scores provided by companies like FICO® and VantageScore®.

The timing of your card issuer’s report to the credit bureaus may vary by issuer. But if you can make a payment before the end of a billing cycle, you could reduce the balance on your account for that billing cycle. Depending on timing, you could even reduce the amount that’s reported to the credit bureaus. That means your credit utilization may be lower, too. And that could be beneficial to your scores.

How Paying Your Credit Card Early Affects Your Interest

Issuers typically calculate interest based on your card’s applicable annual percentage rates and the balances you carry on your card from month to month. Paying earlier or more than once a month may help reduce interest charges if you’re carrying a balance and not paying your full balance off each month. In fact, every little bit you’re able to pay toward a balance you’re carrying can help you chip away at what you owe.