If you feel that your billing cycle is inconvenient, or feel that another date can be better, you can change it.
Changing your credit card billing cycle requires a lot of work and planning. You cannot change it whenever you want. Also, you are only given a few specific dates, set by the credit card company, to choose from.
That is set to change now! All credit card users will now be given a one-time option to change their billing cycle. The RBI has now mandated that card issuers provide a facility for changing the billing cycle date, and the new rule will take effect on July 1, 2022. "Credit card issuers do not use a standard billing cycle for all credit cards issued." "In order to provide flexibility in this regard, cardholders shall be provided with a one-time option to modify the billing cycle of the credit card as per their convenience," according to the RBI's Directions to Card Issuers.
What Is A Credit Card Billing Cycle?
The billing cycle on your credit card is the date on which you will be charged for a specific amount of money. The standard billing cycle is set by the card issuer and is usually from the 10th to the 15th day of the month.
A billing cycle is the date that a credit card bill payment is due. Many major credit cards offer a tool to change your billing cycle, which will be active for one year, allowing you to move your bill to the next available cycle at a later date.
The billing date is important because it determines the maximum interest-free period on your credit card. The longer the interest-free period, the lower your credit card interest rate is. The greater the length of the interest-free period, the lower your credit card interest rate is. The maximum interest-free period on your credit card is the shortest of the three interest-free periods offered by the card issuer.
Beneficial For Users With Multiple Credit Cards
This will give customers with multiple credit cards even more flexibility in choosing when to pay their bills. Now, instead of being forced to choose a specific date every month, you can choose when works best for your financial situation. This will allow you to plan and pay your bills at a time that suits your cash flow better. Just keep in mind that the option to change your credit card billing cycle is only given once, so you should take advantage of it while you can!
Avoid Late Payment Charges
Users can manage their payments better and avoid late payment charges. This is very important since the penalty rates for late payment are often much higher than the credit card interest rate.
Pay Bills When Your Cash Flow Is High
Users will now have the flexibility to choose the most convenient bill date for them. This also allows them to pay their bills on a date closer to their next paycheck, rather than paying a lump sum once a month. This will allow them to save money and avoid late payment charges. This will also allow them to pay their bill amount in full and avoid incurring interest charges.
Also Read: Credit Card Billing Rules
Why Is Your Credit Card Billing Date Important?
Most credit cards provide a maximum interest-free period to pay your bill amount in full. The longer the interest-free period, the longer you have to pay your bill in full without incurring interest charges. This is particularly important for users who make large purchases on their credit card. If you can avoid paying your bill in full, you can often get a much longer interest-free period.
The billing cycle on your credit card is important because it determines when you are charged interest on the balance. The longer the billing cycle, the longer you will have to pay interest before being charged the full amount. The shortest billing cycle possible is usually on the 10th to the 15th of the month. The longest billing cycle possible is on the 26th to the 28th of the month.
Many major credit cards offer the option to change your billing cycle, either on their mobile banking app, or on the mobile banking browser application, allowing you to move your bill to the next available cycle at a later date.
How Do I Actually Change The Billing Cycle On My Credit Card?
1. You can call the customer support department of your credit card company to change the billing cycle on your account.
2. You can also change the billing cycle on the mobile banking app of your credit card. Most banks have an Android or Apple App Store app to manage their credit card accounts.
3. You can login to your credit card account on your browser and change the billing cycle.
FAQ of Can We Change Your Credit Card Billing Cycle
1. Can I change the billing cycle on my credit card anytime?
No, you can change it only once in a specific period of time. For example, once in 3 billing cycles or 90 days. It is bank specific and you should check with your bank to know the exact time period.
2. Can I choose any date as my credit card billing cycle?
No, credit card companies usually have a specific date range for the billing cycle. You can choose one among them to suit your needs.
3. Can I use my credit card between my credit card billing date and bill due date?
Yes, absolutely! Any transaction made after your credit card billing date will be billed in the next billing cycle.
4. Can I pay my credit card bill before the due date?
Definitely! Any credit to your account will be adjusted against your total unbilled amount and reflected in your statement.
5. How many times can I pay my credit card bill in a month?
While it is a good habit to pay your credit card bills in full every month, if you are unable to do so, you can make additional payments as and when you have surplus money. There is no restriction on how many credits your credit card can have in a month.