How billing cycle affects your credit score

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Your billing cycle or billing period is the time between the previous bill statement and the next.

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Most financial products that require monthly payments, such as credit cards and loans, have billing cycles.

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The period between the end of a billing cycle when the statement is issued and the due date is called grace period.

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If you pay your balance in full before your due date (before grace period ends), you won't incur interest.

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A majority of credit card issuers and lenders report your account information to credit bureaus on a monthly basis.

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Equifax®, Experian®, and TransUnion® are the three major credit bureaus that lenders use to check your credit.

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Whatever action you take during a billing cycle, including purchases and payments, get reported to credit bureaus.

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These will reflect on your credit report and cgo on to influence your credit score depending on your transactions.

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While you can't change the length of your billing cycle, you can adjust your payment due date if your lender allows.

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