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.
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.
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.
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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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.
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.