Billing Cycle
The recurring period (usually 28–31 days) between credit card statements. Your billing cycle determines when your statement is generated and what balance is reported to the credit bureaus. Payments made during the billing cycle reduce your balance; the amount remaining on the statement date is what gets reported.
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- Statement Date
The date your credit card billing cycle closes and your statement is generated. The balance reported to the credit bureaus is typically your balance on the statement date — not your payment due date. Paying your balance before the statement date results in a lower reported balance.
- Credit Utilization
The percentage of your available revolving credit (credit cards, lines of credit) that you're currently using. Calculated by dividing your total credit card balances by your total credit limits. Accounts for 30% of your FICO score. Lower is generally better; keeping utilization below 30% is a common guideline, while below 10% is ideal.
Frequently Asked Questions About Billing Cycle
What does Billing Cycle mean?
The recurring period (usually 28–31 days) between credit card statements. Your billing cycle determines when your statement is generated and what balance is reported to the credit bureaus. Payments made during the billing cycle reduce your balance; the amount remaining on the statement date is what gets reported.
Is Billing Cycle important for my FICO® score?
Understanding Billing Cycle helps you manage your credit profile more effectively, which in turn supports a stronger FICO® score.