There are several charges and fees associated with a credit card. In addition to service and maintenance, you may come across another part of your bill: the unbilled amount. While it does not affect your current due, understanding it may help improve your spending habits, resulting in massive long-term savings.

What is Unbilled Amount in a Credit Card?

A billing cycle for a credit card is usually 27–31 days. After that period, your credit card provider generates the bill statement. If you make a transaction after the statement generation in a particular month, that amount is an unbilled amount.

Let's say your credit card bill is generated on the 5th of April. Now, your bill statement will include transactions from March 6 to April 5, the sum of which is ₹40,000. Now, say you make a transaction worth INR 20,000 on April 6. The unbilled amount in credit card means the leftover INR 20,000. You’re not liable to pay this amount for the March 5 billing cycle, rather, this would be included in the billing cycle of the next month.

How can you check your unbilled amount?

The unbilled amount typically shows up when you receive your credit card bill. Here are a few other ways to check your unbilled credit card amount.

• Net banking: Activate net banking if you haven’t already, and register and link your card. After you register your card, you should be able to check the unbilled transactions by visiting the credit card menu on the website.
• Customer service: You can also reach out to the support team of your lender and ask them about the details of your unbilled transactions.
• SMS alerts: As soon as you use the card, you get an SMS alert. You can use it to keep an eye on the unbilled amount. However, there may be a slight delay, depending on each bank. So, it’s best to examine the time stamp on each transaction.

Conclusion

Understanding the concept of the unbilled amount in a credit card can greatly benefit your financial management. The unbilled amount refers to transactions made after the billing cycle but before the statement generation. This amount is not immediately due for payment but will be included in the next billing cycle.

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Frequently Asked Questions

1. Can I pay unbilled transactions?

Yes, you can pay unbilled transactions in the next billing cycle. If you can afford to repay the entire sum, it is easy. If it is more than you can manage at the time, then you can have the amount converted into EMI.

2. Do I need to pay the unbilled amount in HDFC credit card?

Yes, you need to pay the unbilled amount in HDFC credit card by the due date to avoid late charges. Any unbilled amount left for the following month may add to your credit due, resulting in more interest and a lower credit score.