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What is a billing cycle?
The billing cycle is the number of days between the last statement date and the current statement date. A statement is a monthly bill sent by a credit card company to the user. It gives a summary of the account information, including balance, purchases, payments, credits, and charges.
Most credit card accounts allow you to carry a balance from one billing cycle to the next; however, you have to pay interest on that balance. Usually, you have to pay at least a certain amount of your balance each time you receive a bill (the minimum payment).
See also:
How does a credit card work?
What is a spending/credit limit?
What is a minimum payment?
What is a default APR?
What are the finance charges? How are they calculated?
Last update: 2006-09-25 16:58
Author: BKO
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