Definition
The roughly monthly period a credit card statement covers, usually 28-31 days. When the cycle closes, the statement balance and due date are set; pay the statement balance in full by the due date and purchases typically accrue no interest.
Why it matters
The cycle is the machinery behind the grace period and the utilization your score sees: the balance reported to the bureaus is usually the one on the closing date. Paying a balance down before the cycle closes is a quiet score lever.
Example
A card's cycle closes on the 12th with a $1,480 statement balance due about 25 days later. Paying the full $1,480 by the due date means no interest; paying part of it starts interest on the rest and can suspend the grace period.
Put it into practice
Related terms
This definition is educational, not financial, legal, or tax advice. U.S. rules and limits change; verify time-sensitive details with official sources. See our disclaimer.