Want to understand how credit card cycle works ?

POSTED BY gnanesh.balaram ON May 23, 2014 11:37 am ONE COMMENT

Good evening

I want apply for credit card so can you please let me what are the important things?

The billing cycle is 5 of every month .I will do the transaction on the first month on 10 march and will pay the bill on 15 march will there be any interest calculated . And in the second month I will not do any transaction will I have pay fee fr that

One reply on this article “Want to understand how credit card cycle works ?”

  1. Hemanth Chandra says:
    May 23, 2014 at 4:14 pm

    Suppose the bill generation date is 10th of every month,bill due date is 30th of every month.

    So, for example. the bill is generated on 10th may. This bill will have the transactions that you have made from previous bill generated date to this bill bill generated date.

    So, in this case, it will have all the transactions from 10th Apr to 10th May.

    You have to pay the bill the bill by 30th May.

    So, if you make a purchase on 11th Apr, you will have time to pay the bill till 30th May.

    If you don’t pay the bill by 30th May, you will be charged at the rate of 2-3 % (per month) of interest, which turns out to be in the range of 24-36 % per annum.

    Regards,
    Hemanth.

    Reply

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