Is it Easy to Remember the Credit Card Billing Cycle and Due Date?

People who acquire credit cards use them for purchasing a number of goods and services. Credit cards are used by several people to pay utility bills and purchase high-end items easily, letting you use facilities like EMIs, and offering credit lines within which you can arrange to pay for your goods.

Knowing how your credit card works, and taking advantage of that information, planning your purchases, and spending in a timely manner is key to getting the most out of credit card use. Knowledge about your credit card billing cycle and due date will help you not to default on bill payments as well.

Studies explain that the reason why even apparently manageable debt, like that of credit cards, sometimes goes awry is because of loss of employment, medical emergencies that require immediate liquidity, and business fallouts. All these factors impact an individual’s finances adversely. Spending on your card and not being able to meet bill payments can incur hefty charges, as well as interest, plus there is the added 18% GST mandated by the Government of India.

Several people missed their credit card payments for a few months last year; this goes out of control if one continues to miss payments for more than three or four months. In India, this is the apprehension that people face while considering a credit card, and decide to avoid applying for one.

Vital Credit Card Facts 

In case you pay the “minimum amount due” noted on your card, you will not be termed a “defaulter”. This is about 5% of your total bill amount, and if you pay it, you can maintain your credit card account. The billing date is also called the statement date. It is the date on which your bill is generated by the credit card company or bank. The billing date definition shouldn’t be confused with that of the billing cycle. Often, credit card users can get foxed by the different terms, and miss a payment date or two.

When you receive your credit card bill, you will see a due date on the credit card bill or the statement. This date will be around 20 days away from the time you get the billing statement. Credit card companies and banks give cardholders enough time to pay their bills and settle dues. Additionally, there is a grace period after the due date. This has been created by the Reserve Bank of India to encourage people to settle their bills in a timely manner, and a three-day grace period is usually offered by the card issuers.

Planning to Pay Bills on Time

The credit card billing cycle and due date shouldn’t confuse you. The billing cycle is the period within which you make your purchases using a credit card. It is a period within which you are offered interest-free credit. It can typically last for up to 45 days. That is, you can use your card without paying any additional interest. The interest and late charge kick in once you have missed the due date payment.

In case you pay the amount under “minimum due”, you have to settle the outstanding amount, or it gets carried forward to the next bill, adding on to that payment. Besides this, you are charged interest daily along with a late fee. In the next billing cycle, whatever you spend will incur interest till you settle the previous month’s bill amount.

The whole idea to steer clear of any kind of debt is to plan ahead and be aware of different credit card terms. With multipurpose credit cards like the Bajaj Finserv RBL Bank SuperCard, you get the power to spend as you like in more ways than one. The card can be a regular credit card or an EMI card. More importantly, it acts as a loan card, giving you loans for up to 90 days at a lower rate of interest, compared to regular bank credit cards, at just 1.16% per month.

Additionally, you get to withdraw cash during emergencies. You can use ATMs to withdraw cash for up to 50 days without paying any finance charges. Additionally, it’s easy to pay credit card bills by converting them into EMI payments, which you can do using the Bajaj Finserv RBL Bank credit card.