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Understanding Credit Card billing cycle

3 min read Jan 16, 2024


If you have recently applied for a Credit Card, knowing the intricacies of its billing cycle is important. Credit Cards attract interest and affect your credit score. Each Credit Card comes with a billing cycle. Therefore, it is imperative to understand how the Credit Card billing cycle exactly works.

Credit Card billing cycle

Also known as the Credit Card statement cycle, it refers to the period for which your Credit Card bills are generated. All transactions that you undertake during such period — your account summary — are mentioned in the bill of that period. Therefore, it is important to understand the modus operandi of the Credit Card billing cycle and due dates.

Billing cycle process

If your Credit Card bill generation date is 5th February, then your billing cycle for that statement will be from 6th January to 5th February. Once the Credit Card billing period ends, your Credit Card statement for that period will be generated. It will reflect all the transactions (receipts and payments) you made using the Credit Card.

All the transactions undertaken after the Credit Card bill is generated will be reflected in the Credit Card bill of the subsequent month.

Pro tip: You can use your bank's mobile banking app or NetBanking platform to change your Credit Card's billing cycle and set it as per your convenience.

Bill generation date

The Credit Card bill generation date and the due date of payment for your Credit Card bill are different. The billing date comes first, which is when you receive the bill intimation. All Credit Cards provide a grace period of 15-20 days after the billing date, the last day of which is the due date. You should check the grace period or credit period of your Credit Card while applying for the same.

Also Read: Demystifying Credit Cards: How do Credit Cards work in India

Credit Card due date

You need to pay your Credit Card bill before the due date. You should always check all the transactions reflected in your Credit Card statement and try to pay the full bill on or before the due date. Don’t delay your bill payment to the last date. If you are unable to pay for any reason, it will dent your credit score and attract late payment fees.

Minimum amount due

Lacking funds to pay your Credit Card bill? Don't worry! Almost all Credit Cards provide an option to pay a certain minimum balance due and continue using it. The minimum amount due is the least amount of money you need to pay towards your Credit Card bill.

If you pay the minimum amount due, late payment fees or negative points won't be added to your Credit Card statement. You can carry forward the remaining amount to the next cycle. The minimum amount due will be present on your Credit Card statement.

However, remember that the remaining unpaid amount will attract a hefty interest rate.


As a Credit Card holder, you need to keep track of your transactions and pay the billed amount to ensure a good credit score. Financial institutions generate Credit Card statements or bills each month, which will help you keep track of your payments. The Credit Card billing cycle is the period for which the Credit Card statement is generated. You should always pay your Credit Card bill before the due date. Paying after the due date will attract late payment charges and interest.

Also Read: Credit Cards: Six reasons why you should have a credit card

If you are looking for a Credit Card with exclusive benefits, consider checking out the range of Axis Bank Credit Cards. Axis Bank offers a range of cards suited for different lifestyles and preferences. Apply now and save more!

Frequently Asked Questions (FAQs)

What is the billing cycle for a Credit Card? 

It is the monthly period during which all the transactions you do on your Credit Card are captured in your Credit Card bill. It starts when you activate your Credit Card and start using it. The billing cycle can start on any date during the month and ends after a 30-day period from that date. The Credit Card bill or statement is generated on the last day of the 30-day period. 

Can I change my Credit Card billing cycle? 

Yes, you have the option to change your Credit Card billing cycle once. So, check with your bank if you changing your billing cycle can help ease your repayment. 

How can I know my Credit Card billing cycle? 

You can check for it in your monthly Credit Card statement. 

Should I pay my Credit Card before or after due date? 

You should pay your Credit Card balance before the due date to avoid paying late payment fee and interest rate charges. This will also ensure your credit score and credit history are not impacted negatively.

Disclaimer: This article is for information purpose only. The views expressed in this article are personal and do not necessarily constitute the views of Axis Bank Ltd. and its employees. Axis Bank Ltd. and/or the author shall not be responsible for any direct / indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information. Please consult your financial advisor before making any financial decision.