What is a Billing Cycle?
A billing cycle is the period of time between two consecutive bills that a business issues to its customers. It is usually a month-long, but can range from a few days to a quarter, depending on the business. During this period, the customer accrues charges for the services they have used, such as utilities or credit card purchases. At the end of the billing cycle, the business sends the customer a bill that details the charges accrued and the amount owed.
Understanding the billing cycle is important to avoid late payments or missed payments, which can result in fees or even damage to one's credit score. By keeping track of when the billing cycle starts and ends and making timely payments, customers can maintain a good relationship with the business and avoid unnecessary expenses.
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