How to Change Credit Card Billing Cycle: Step by Step Guide

Did you know that the Reserve Bank of India (RBI) has asked Indian banks to provide their credit card customers with an option to modify their credit card billing cycle at least once? This amendment, effective from March 2024, was a revision to its existing rule that allowed a one-time billing cycle change. 

As a credit cardholder, if you are planning to change the credit card billing cycle, you are at the right place to find out the process. Additionally, explore the benefits of changing your billing cycle. 

Quick Overview 

• You can change the credit card billing cycle once as per the card issuer's guidelines.
• This allows you to align your income and credit card expenses.
• You can improve cash flow management with a billing cycle change.

Process to Change Credit Card Billing Cycle

The process to change the credit card billing cycle is seamless. Knowing the right steps can help you align your income with the new billing cycle efficiently. Here are the simple steps to change your credit card billing cycle: 

Step 1: Know Your Current Billing Cycle

Before you change your billing cycle, you need to know your current billing cycle. Usually, a billing cycle is for 30 days, from the statement date to the day before statement issuance. 

For instance, if your billing cycle is from the 5th of one month to the 5th of the next month, your payment due date will usually be 20 days after the end of the cycle. Ensure you know your current cycle before you change your billing cycle. 

Step 2: Select a Billing Cycle that Matches Your Income

Choose a credit card billing cycle that aligns with your income flow. For instance, if your salary date is the 5th of the month, you can choose the 6th as the billing date.

This can help you avoid credit card delinquencies like late payment while you manage your expenses and bills efficiently. You can have a 20 to 25-day time to pay your credit card bill after the billing date, enabling you to manage your income strategically. 

Step 3: Request a Bill Cycle Change

You can request a credit card billing cycle change online, by visiting your nearest bank branch or by calling the customer service department. If you choose to change it online, look for ‘Manage Cards’ or ‘Billing Options’ on your portal.

Ensure you inform your bank about the new billing cycle, stating that you want to change it to manage cash flow better. Notably, avoid overlapping billing cycles as it might attract additional charges. 

Benefits of Changing Credit Card Billing Cycle

1. Once your billing cycle aligns with your cash inflow period, you can create a monthly budget by breaking down your expenses into categories.
2. As a cardholder, you can avoid overspending beyond your credit limit.
3. You can plan your upcoming expenses beforehand.
4. As a cardholder, you can enjoy an interest-free period of 45 to 50 days.
5. You can enjoy flexibility in bill payment until the payment due date, ensuring convenience.

Final Words

If you change the credit card billing cycle, you can seamlessly align your monthly income with credit card bill payment. This helps you maintain a good credit score, which is an essential criterion to apply for additional credit cards.

However, if you want to take a secured credit card without the hassle of a credit score, you can check out credit cards against fixed deposits. For instance, Stable Money, partnered with Suryoday Bank, provides a credit card against FD of ₹5,000. 

So download the Stable Money app now to book an FD at up to 8.40% interest per annum and avail credit card privileges!