What Is a Billing Cycle and How Long Is It?

A credit card billing cycle, sometimes referred to as a billing period or statement period, is the time between two statement closing dates. During this time, transactions that are made will appear on your next statement balance. Typically, your bill will be due in a few weeks, but the next billing cycle will start right away.¹

For instance, let’s say your card’s balance is $500 at the end of your billing cycle. In this case, your card statement will show this as your balance and your minimum payment will be calculated based on this amount.²

A billing cycle typically ranges between 28 and 31 days (about 1 month), depending on your credit card issuer.³ It may also fluctuate based on the number of days in the month. Billing cycles are required to be equal and no longer than a quarter of the year. Equal means that the intervals should vary no more than four days from each other.⁴

The transactions that are made during your billing cycle are added to your previous balance if you have one and determine your statement balance. Your credit card bill will typically be due a few weeks later.⁵

Your billing cycle should be clearly stated on your monthly credit card statement. Your credit card statement will tell you the closing date for the billing cycle, and some credit card issuers also list the number of days in your billing cycle. You can also check your current billing cycle’s closing date by signing into your online account.

Knowing when your credit card’s billing cycle starts and ends is important for paying your credit card bills on time, something that can impact your credit score. Information that credit card issuers report will typically go into your credit reports and impact your credit scores. While on-time payments can positively impact your credit score, late or missed payments can negatively impact it.

Information that credit card issuers report will typically go into your credit reports and impact your credit scores. While on-time payments can positively impact your credit score, late or missed payments can negatively impact it.

Your reported balance is also important as this determines your credit utilization ratio.⁶ Your credit utilization ratio refers to the amount of available credit that you’re using as it compares to your total available credit. Using a high amount of available credit could negatively impact your credit score. Typically, it’s best to keep your credit utilization less than 30% (or even lower).⁷

Your billing cycle is an important part of personal financial planning. It can help you to plan, and budget for, your upcoming credit card bill.

Being proactive at the end of the billing cycle can help you avoid late charges when the due date comes. Paying your bill in full can help you avoid interest on most purchases (although interest will still apply for certain transactions, such as balance transfers and cash advances). If you can’t pay off your entire bill, you should at least make the minimum payment.

It also helps you to budget credit card payments and get a firm grasp on what’s left over for other expenses, savings, investments, and personal spending.

Perhaps the most important part of understanding your billing cycle is knowing when you must pay your credit card bill. Here are three good habits that can help with on-time payment: