Credit cards are the most common means of accessing financial resources. They offer us financial flexibility in our everyday lives and allow users to improve and strengthen their credit scores. Each time you use your card for a valid purchase, you get rewards, bonus points, or air miles.
Your credit card statement provides an overview of how your credit card was used during each billing period. If you have ever looked over a credit card statement, you are aware of how confusing it may be. Credit card statements contain many different kinds of statements, figures, and percentages that indicate your total credit card amount.
Credit cards are currently among the most desired financial goods in the world because of their vital role in granting consumers financial independence. Credit cards handle all of these problems, whether they are related to impulsive purchases or the real concern of running out of money at the end of the month.
Per regulations, your regular credit card statement is generally released from your card issuer no less than 21 days before the day your minimum payment is due.
Typically, billing statements are 2-3 pages long and include detailed information about your charges, payment history from the previous month, the amount owed, and the deadline for making payments to prevent penalties.
The Credit Card Statement’s Importance to Cardholders
Statements from credit card providers are crucial since they enable cardholders to keep track of their credit card expenses. Additionally, they offer details on each credit or debit activity completed either with or without the credit card.
The Advantages of Credit Statements that Banks Send to Users are as follows:
- Statements for credit cards are provided at no charge.
- Almost all banks also offer email statements, so users no longer need to visit the bank to obtain the account statement for their credit card.
- Credit card statements frequently include details on banking services and new product offerings.
- This statement allows users to monitor their cashback and perks.
10 Points You Should Check in Your Credit Card Statement
When you benefit from a credit card, it’s important to understand the credit card statements you get after each billing cycle.
Listed below Are 10 Points You Should Check for on your Credit Card Statement:
- Account Summary
All of the payments you made during the previous billing month, the interest charged on the past-due balance, any extra costs or charges, and the total sum outstanding are listed in this account overview on the statement you receive for your credit card. Furthermore, please provide the days left in your billing period and credit limit, including statement closing dates.
The financial transactions that you make after the statement closure date will show up on your next billing statement, so keep that in mind. You must log into your e-wallet or net banking account to check out these transactions.
- Credit Limit and Available Credit
A credit card limit is determined by several factors. When you are a first-time customer, your credit limit will be smaller. This limit is set by the bank, and the person using the card is not allowed to go beyond it. Certain providers allow users to surpass the cap, subject to the terms and conditions.
Banks typically suggest sticking under the limit set up by banks to prevent debt traps.
- Due Date for Payment
The payment due date is one of the most important points to check in your credit card bill statement. This is the due date for paying your fees. It isn’t always an ideal choice to pay on the last day or the payment due date. This could result in a delay of up to three working days and incur interest and a penalty for paying late. As a result, you have to confirm the last day to make the payment and do it as soon as you can.
- Total Amount Due
Service costs, penalty charges, interest on the outstanding debt, any relevant late fees, carryover amounts from prior billing cycles, and any additional charges are all included in the overall sum owed.
You have to check your credit statement for any additional expenses, such as interest or penalties for prepaying, to avoid paying them.
- Minimum Amount Due
When you feel incapable of paying the entire amount due, the banks issuing the cards allow you to pay just a small amount to avoid the late penalty. You might choose to pay a small amount each month instead of the entire balance owed to all the credit card issuers.
This payment is usually relatively small—between 3% and 5% of the sum that you owe. Hence, if you are incapable of paying the entire amount owed and are worried about getting behind on your payments, you must only make the minimal payment as a final choice.
- Bank Charges
Now and again, you may wonder why or how your credit card statement exceeded your expectations. You must keep an eye out for any extra banking charges that may be incurred as part of various banking charges, such as interest charges, foreign currency markup fees, penalty charges for late payments, cash advance costs, etc.
- Grace Period
The payment due date is usually twenty to twenty-five days following the end of the billing cycle, as is usual with credit card issuers. When it comes to credit card payments, this time is known as the “grace period.”
Under RBI guidelines, banking organizations are only permitted to initiate charges on a card for late payments if the outstanding balance is not settled within 3 days of the actual due date. Even though it won’t be paid during the grace period, interest will still be applicable and calculated as of the payment due date.
- Late Payment Notice
A late payment notice will be displayed on your card statement, telling you to cover the bare minimum to avoid incurring late payment fees. The late payment penalties will also be included in this notice.
- Points, Rewards, or Cashback
Almost all credit cards come with cashback or reward points programs that users can use on almost all of their purchases. The statement you receive also shows the number of reward points or cash back for a particular billing period.
You can continue to keep track of your bonuses and the validity period so that you may utilize the points you’ve earned for the right purchase before they lose their validity.
- Details of Transactions
Right away, when users receive their statement, they should look over the transaction details. Each of the transactions is completed during the entire cycle up until the payment deadline is listed. Being a credit card holder, the user should thoroughly check every transaction to make certain there are no errors.
You must review the transaction data every time. This is a significant matter to assist you in becoming more mindful of the ways that you spend. Finally, these tactics will encourage you to save money for future needs.
How to Handle Credit Card Statement Issues?
If users discover an expense on the credit card but they are sure that they did not make it. In these scenarios they should notify their banking institution of it. For example, cards may sometimes be double-swiped. The person who holds the card can correct the following errors on their credit card statement:
Notify the Merchant: Users can speak with the merchant directly to report any discrepancies found in the statement. The merchant may correct the error. In this situation, the user can avoid involving the bank that issued the credit card.
If this fails for any reason, the person using the card may file a complaint with the bank.
Maintain your Documentation Updated and Prepared in Advance: The person who holds the card is advised to maintain a copy of his or her credit card statement, invoices, and any other documentation that demonstrates the error in the transaction to strengthen their claim regarding the wrong statement.
Contact customer support to update basic information, like your address. You may even be allowed to do this on the official site of your credit card issuer.
You must get in touch with the customer service department to raise a dispute and send a follow-up email if there is a billing error. Unless the company has looked into the dispute and responded, you won’t be required to make payment for the disputed figure.
Bottom Line
Credit cards are so common nowadays that almost everybody is seen carrying one. Concerning the great ease it offers those who use credit cards when making payments, its usage rate is continually rising. If handled responsibly, credit cards will rarely put a person in debt. The way to avoid trouble is to pay close attention to the purchases made with your credit card. For this reason, a credit card statement is essential.
This works as the financial indicator that directs you toward your financial well-being and security. Keep your eyes on the transactions, follow up with timely payments, and pay attention to the credit limits. You have to be aware of the charges, rewards points, and any relevant offers and updates. When you watch these details, you are not just guarding yourself against fraud but are also making sound decisions that lead to financial stability and prosperity.
Credit card statements are records of every purchase or transaction you have made on your credit card within a specific period. They show the remaining balance of your card, the amount of your statement, the bare minimum payment required, and the due date, together with any credits, fees, interest, and payments you have accrued over time.