It is difficult to keep track of the due date on credit card bills. Customers often fail to remember the due dates of their credit card payments and sometimes even miss the deadline. Besides the financial obstacle, it also impacts one’s credit score. There are also times when people receive a credit card with a due date that does not match their income flow cycle, thus increasing the risk of missing payments every month. While it is important to set the billing cycle in a coordinated manner, is it really possible to choose or change the credit card billing cycle or due date as per convenience? Well, the answer is yes.
Credit card billing cycle or due date rule change
The Reserve Bank of India, in its latest advisory, asked credit card issuers to provide customers with an option to modify their credit card billing cycle at least once. In its amendment to the ‘Master Direction: Credit Card and Debit Card: Issuance and Conduct Directions, 2022’ released on 7 March 2024, the central bank said, “In order to provide flexibility in this regard, cardholders shall be provided the option to modify the billing cycle of the credit card at least once, as per the cardholders’ convenience.”
Before this, the provision stated that credit card holders would be given a “one-time” option to modify the billing cycle, which has now been changed to “at least once.”
Will modifying the credit card billing cycle help customers?
A billing cycle or billing period is the time between two statement dates—the time when the bill for the ongoing month is generated. While the due date of the credit card bill is usually 15-20 days after the statement date, users naturally get an interest-free period of 45 to 50 days. However, in case a customer changes his billing date, the due date of the credit card payment also changes accordingly.
How to change the credit card billing cycle and due date?
It is to be noted that the process of changing credit card billing cycles or due dates differs from one bank to another. While most banks provide the option to change the credit card due date online on their net banking platforms, one can also call the customer care department of the bank and inquire about the process.
Different banks have their own rules for changing the billing cycle, and one must carefully understand them before making any changes as they will directly impact credit card payments and statements.
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