Billing Cycle

A billing cycle, also called a statement period, is the recurring time window — typically 28 to 31 days — during which a credit card issuer groups all eligible transactions to appear on a single monthly statement. The cycle has a fixed start date and end date: all transactions that post to the account between the closing date of one statement and the closing date of the next fall within that billing cycle. At the cycle close, the issuer calculates the total amount owed, applies any interest or fees, determines the minimum amount due, and generates the monthly statement. The statement also shows the previous balance, payments received, new charges, and credits. Cardholders are required to pay at least the minimum amount due by the payment due date — usually 18 to 21 days after the statement closing date — to avoid a late payment fee and trigger of the interest-free grace period. The grace period only applies when the previous month’s balance was paid in full; carrying any balance forward means interest accrues from the individual transaction dates. Cardholders can request a change to their statement closing date, subject to issuer approval, to better align the billing cycle with their salary or cash flow dates.