Introduction: Why Understanding Your Billing Cycle Is Critical 

A credit card isn’t just a swipe-and-pay tool—it comes with a billing cycle, due dates, and an interest-free period that can either save you money or cost you a lot if ignored. 

In fact, as per RBI data, over 27% of credit card users in India end up paying interest or late payment fees—often due to confusion around billing cycles. 

This blog will help you understand: 

What Is a Credit Card Billing Cycle? 

A billing cycle is the time period between two consecutive credit card statements. 

Typically, it lasts 28 to 31 days, depending on the bank. At the end of this cycle, your bank generates a statement showing: 

Example: 

Let’s say your billing cycle is from 1st to 30th June 

How Does It Work? Timeline Breakdown 

What Is the Interest-Free Period? 

This is the time from the date of purchase to the due date—when no interest is charged on your credit card. 

The maximum interest-free period is usually 45 to 50 days, but it depends on when during the billing cycle you made the purchase. 

Two Scenarios: 

What Is the Minimum Due Amount? 

The minimum due is usually 5% of your total bill. Paying this amount keeps your account in good standing, but: 

How to Maximize the Billing Cycle Benefits 

What Happens If You Miss the Due Date? 

You can check your score and track your payment behavior using the IndiaLends Free Credit Score Tool. 

Billing Cycle vs Due Date vs Statement Date 

Internal Links: Learn & Apply for Smart Cards 

Cards with Best Billing Cycle Benefits (Available on IndiaLends)