New Delhi, June 10 -- The billing cycle is one of the most vital, yet misunderstood, parts of credit cards. In order to maximise the benefits of your card, track payments, and avoid interest, you must first understand how this cycle works. Let's break it down in a way that is understandable.

The financial institution defines "billing cycle" as the period of time that all of your credit card transactions are created and recorded. Generally, the billing cycle is typically 28-31 days long, depending on the financial institution. At the end of the cycle, you will receive a credit card statement summarising:

Being able to understand your billing cycle allows you to make better decisions, manage your payments effectively, and avoid unnecessar...