The trend of digital payment is increasing in India and it has become more important in the time of corona epidemic. Along with the big cities of the country, the trend of credit card has increased in small towns as well. According to the report, there are about 64 million credit cards in circulation in India.
If you use a credit card, then you should be aware of many things related to it. The first and most important thing you should know is the billing cycle. If you are a multiple credit card holder, the billing cycle needs a lot of attention.
What is credit card billing cycle
The credit card billing cycle is also known as the statement cycle. The billing cycle starts from the day the credit card is activated. The billing cycle duration can be from 28 to 32 days.
Whereas, the credit card statement or billing statement gives information about how you have used the credit card during the billing cycle or billing period. The statement contains information about the transactions done during your billing cycle, minimum amount due, amount due, due date etc.
Payment due date-
This is the last date for payment of credit card bill. There are two types of charges on payments made after this date. First, you have to pay interest on the outstanding amount and pay a late payment fee.
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Total Outstanding-
You should pay the total outstanding amount per month without any extra charges. The total amount includes all EMIs along with charges incurred during the billing cycle.
Credit limit-
You will find three types of limits in the credit card statement, total credit limit, available credit limit and cash limit.
Transaction details-
In this section, there is complete information about how much money came in your credit card account and how much was spent.
Reward Point-
In the credit card statement, you will see the status of the reward points accumulated so far. Here you will see a table showing the number of reward points earned from the previous cycle, points earned in the current billing cycle and points that have expired.
