By OneCard | October 28, 2024
The credit card billing cycle is the duration between two statement dates on your credit card. The billing cycle length varies from issuer to issuer but usually is around 27 to 31 days. Every payment, cash advance, or purchase made during this period can be tracked in your billing cycle.
But why would you need to change your credit card billing cycle? If you have several monthly payments scheduled—be it rent, mortgage payment, utility bills, etc.—your credit card billing cycle can add to your financial woes if the due date clashes with other payment cycles. Conversely, the ability to change your credit card billing cycle can alleviate some of this stress if you can access more credit just when you need it. It might seem like an arbitrary cycle, but it has great potential to impact your monthly financial planning. So let’s take a look at how you can go about changing your credit card cycle to suit your needs.
Table of contents:
The process of changing your credit card billing cycle varies between credit card issuers. Here are the steps that you need to follow:
You can request your bank or credit card issuer to change your billing cycle through your app or website. You can also choose to contact a customer representative to request the change. You may have to explain the reasons behind the change, such as a change in salary cycle or financial status. During this process, you may also be asked to hand over your account and credit card information.
Credit card issuers usually offer a range of due dates. Choose the dates that align with your financial situation. For instance, if most of your paycheck at the beginning of the month goes towards rent and utilities, it is better to push the credit card due date to the second half of the month.
As per the revised statement by RBI in March 2024, credit cardholders shall be provided the option to modify their credit card’s billing cycle at least once at their convenience. With this new rule, cardholders now have the choice to adjust their billing cycle according to their preferences and financial obligations. This flexibility enhances smoother credit card management.
While the regulation mandates the process of changing the credit card billing cycle date at least once, banks may choose to provide additional flexibility in this regard. It’s best to check with your bank or credit card issuer for specific policies regarding this change.
Credit card billing cycle change offers various benefits, from convenience to the financial flexibility of adjusting the due date. Here are a few benefits to look out for:
This credit card billing cycle change allows you to analyse monthly expenses and income to choose a suitable date. This ensures effective payment management. It is important to set your due date when you have enough funds available. For instance, One Credit Card allows you to choose and change the OneCard billing cycle through its app.
The process of changing the credit card billing cycle can enable timely payments while avoiding late fees and interest charges. For instance, you can set a due date that aligns with your salary getting credited rather than choosing it at the end of the month. This will ensure sufficient funds are available for credit card payments.
If you have multiple cards, it is recommended that you set a due date that aligns with your financial situation. For instance, adding a single due date for all the credit cards is preferable, while some prefer to spread out payments across different due dates to avoid financial strain.
ALSO READ: How Many Credit Cards Should You Have?
To conclude, understanding the credit card billing cycle change is crucial for responsible usage. Looking out for your credit card statement, due date, and grace period can help you manage your finances better, as long as you align it with your credit card billing cycle.
**Disclaimer: The information provided in this webpage does not, and is not intended to, constitute any kind of advice; instead, all the information available here is for general informational purposes only. FPL Technologies Private Limited and the author shall not be responsible for any direct/indirect/damages/loss incurred by the reader for making any decision based on the contents and information. Please consult your advisor before making any decision.
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