8

I'm surprised that all of the credit cards I've looked at have a statement period of 1 month and almost always have the period run from the 1st to the 31st, though they differ in their payment due date (some by the 13th, others by the 22nd day of the next month).

Are there any cards with a 2 or 3 month statement period? Or cards where the statement date starts in the middle of the month?

  • At best, this would involve delaying the late-payment fee, which would still mean you were paying interest on most of your charges at the usual unreasonably-high credit card rates. Not a great idea... – keshlam May 26 '15 at 13:01
  • The Diner's Club card I have through work extends the interest and penalty free payment period an extra month. I'm assuming the idea is to let people have plenty of time to get an expense report in before they have to pay off the card. I've not seen that kind of deal for a personal credit card though, nor do I know now common that is for business travel cards in general. – Collin May 26 '15 at 13:26
  • Regarding periods, I don't have experience with the American system, but in Canada I never had a card with 1st-31st period. Are they really all like that in America? – Martin Argerami May 27 '15 at 7:30
16

Most credit cards will allow you to pick the closing date. In fact almost every bill with the exception of utilities that collected usage by reading a meter at the house will either let you pick the closing date each month, or at least have several to pick from. They won't let you pick the length, but they will let you pick the day of the month.

When I worked a job that paid once a month. I wanted all my bills due early in the month: get paid, pay bill, know how much I have left. When I went back to every other week spreading them out made more sense. No credit card had a problem with this. The transitional cycle was not the correct length, but after that it was fine.

As Dheer pointed out extending the cycle to 90 days would involve them extending credit for much longer than they would be comfortable. Also the goal of keeping utilization under 30% would be very difficult, you would have to keep your spending per month to less than 10% of your credit limit. Some people have trouble not falling behind on credit card bills, having to set aside the money to pay the bill every 90 day may be way to tough for many people.

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  • Though these days it's fairly easy to find cards that offer 0% interest for a year or more. You still have to make a monthly minimum payment, though. – jamesqf May 26 '15 at 16:33
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    Most of those delayed-payment cards have high fees in other areas or after the trial period ends, in my experience. – keshlam May 26 '15 at 19:10
11

If the billing cycle is 2 to 3 months, it would mean Banks have to give credit for a longer period and it makes the entire business less profitable as well as more risky compared to the Monthly billing cycle.

For example the current monthly billing cycle with a date say of 14th, means if you swipe your card on 1st day, one would effectively get a credit for 30+14, around 44 days. If you swipe on last day, one would get a credit for 14 days. On an average 22 days of credit. If we make this 3 months, the credit period would increase on an average (90+14)/2, 52 days.

From a risk point of view, on monthly cycle if there is non-payment its flagged much earlier compared to a 3 months cycle.

On offering different dates, shop around. In the older times the cycles were different, however with individuals having several cards, and trying to optimize every purchase to maximize credit period. Quite a few banks have streamlined it to monthly cycle. Shop around and some banks should be able to offer you different dates.

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