How a credit card billing cycle works

A credit card billing cycle is the period between two consecutive statement closing dates, typically lasting 30 days. During this timeframe, all your purchases, interest charges, and fees are recorded. Once the cycle ends, your card issuer generates a monthly statement with the total amount due. According to RBI guidelines, cardholders are provided with a grace period of at least 15 to 25 days from the statement date to pay the bill. Paying the full balance by the due date helps you avoid interest charges on your spends.