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billing cycle

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Definition: The billing cycle is the period of time between billings. A billing cycle may start on the 1st day of the month and end on the 30th day of the month. Or, it may go from the 15th of one month to the 15th of the next. Billing cycles are varying lengths, ranging from 20 to 45 days, depending on the credit card and the issuer.

During the billing cycle, purchases, credits, fees, and finance charges are posted to your account. At the end of the billing cycle, you are billed for all unpaid charges and fees made during the billing cycle. Your credit card payment is due 20-25 days after your billing cycle ends. The period of time between your billing cycle end date and your bill due date is known as your grace period.

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