Credit Card Billing Cycle

Understanding how your credit card billing cycle works is crucial to making payments on time and avoiding late payment fees, increased interest charges, and other problems that may arise from missed payments.
 
    
Though everyone is not expected to understand this process immediately, s/he is expected to make an effort to at least comprehend the basics of it.

The basic credit card billing process works like this. Within a limited period, called a credit card billing cycle, one is entitled to charge up to his/her card’s credit limit without being charged a penalty. This is why it is important to know your credit limit since going over this amount can cost you a sizable over-the-limit fee.

Technically, a credit card billing cycle refers to an interval between which a billing statement is sent to the account owner. In the United States, a credit card billing cycle can range from 29 to 31 days, depending on the issuer. When the credit card billing cycle ends, the customer receives his/her billing statement which normally includes the outstanding balance and new charges and fees incurred in the current cycle. All payments and credits are automatically subtracted in order to come up with the current balance.

A credit card billing cycle is an important part of calculating your interest and assessing your account status. Keeping a close eye on your credit card billing cycle should be taken seriously since they can change without notice. Being aware of this can save you from penalty fees, finance charges, and accrued interest. A lot of consumers are complaining about companies adjusting the credit card billing cycle to accrue more interest. Though this is not illegal, you should be able to get an explanation from your company regarding this and should get your opinion on this matter heard.

The good news is: you can have your credit card billing cycle adjusted to your needs and financial capabilities. Rather than not collecting any payment, credit card companies are much more willing to adjust their clients’ credit card billing cycles to meet their financial needs. If you are the type of person who wants to keep his/her bills organized and wants to pay them immediately after getting a paycheck, having your credit card billing cycle adjusted may be the smartest decision. To keep a good rating, you don’t need to pay off every single cent of your credit card debt monthly, simply making at least the minimum monthly payment will keep your rating afloat so long as you keep it up.


  

Source: Credit Cards For People With Bad Credit Rating


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