Credit Card Billing Cycle

It is very important for credit card users to understand their credit card billing cycle and due date. All the transactions conducted during the billing cycle reflect in your credit card statement of the month. 
For example, if the statement date or billing date of ICICI credit card payment is the 5th of every month, then your ICICI credit card billing cycle will be from the 6th of the previous month to the 5th of the current month. All payments, purchases, cash withdrawals, etc., made with the card during the period will be displayed in the statement generated at the end of the ICICI Bank credit card billing cycle.  
This simply means that you have to pay your dues by the 5th without any extra charges within this time frame. If, due to any reason, you are unable to pay your total due amount or even the minimum due amount within this credit card billing cycle ICICI will levy a late fee, as well as interest, will on the due amount. You can also check ICICI Bank Credit Card offer.

Total Amount Due is the entire amount due for payment on the statement date. The minimum Amount Due is a percentage of the total outstanding bill amount that you must pay to the bank if you cannot pay the entire amount.  
You can avoid paying the late payment charges and also being considered a defaulter by the issuer if you pay the minimum amount due by the due date. However, interest will be accrued on the remaining bill amount.

If you are unable to pay the total outstanding bill on your card in any given month, you can choose to pay a small portion of the total bill to avoid a late payment fee. This small portion is termed as Minimum Amount Due (MAD) and is decided by the credit card provider. You will find MAD for the month in each month’s credit card statement. 
MAD is typically 5% of the total outstanding credit card bill or a fixed amount of Rs. 200 to Rs. 300, varying upon your card policy. If you have any loan on your credit card, the instalment of the month will be added to the MAD. In that case, MAD will become 5% of the total outstanding + EMIs + taxes (if any). Also, any over-limit amount on the card is added to the MAD along with unpaid MAD from the previous month(s).

An interest-free period on a credit card is the duration for which no interest is levied on the amount used on a credit card. It is the duration between the first day of your card’s billing cycle and the day on which the payment is due. Moreover, Check different banks Credit Card Interest Rates and apply.

Your credit card billing cycle or the billing cycle of any credit card, may not directly impact your Credit Score. However, any missed payments, partial payments, MAD payments, etc., will significantly impact your credit score.   
According to Credit Information Bureau (India) Limited or CIBIL, a missed payment can affect your credit score for up to two years, and it may reflect on your credit report for up to 3 years. Credit card issuers report the data related to your credit card account to credit rating agencies every 30-45 days. This is why even a single missed payment, either intentional or not, would take a toll on your credit score.

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