10 Things You Should Look for in Your Credit Card Statement

16 August 2022
5 min read

Credit Cards are an excellent source of money. In addition to giving you financial flexibility, they also enable you to raise and enhance your credit score. Additionally, you receive cashback, points, or air miles every time you utilize your card for an eligible purchase.

The use of your Credit Card during a billing period is summarized in your Credit Card Statement. You know how challenging it can be to read Credit Card Statements if you have ever done so. Your total credit card balance is determined by various terms, figures, and percentages on Credit Card Statements.

In this blog, we've compiled a list of the top 10 things to look for on your credit card statement because there are a few things you should consider when reviewing your statement, so read on to know more!

10 Things to Look for in Your Credit Card Statement

It's critical to comprehend the credit card statement you receive at the end of your billing cycle if you use it.

Here are 10 things on your card statement you should look for-

  1. Account Overview

Your Credit Card Statement's account summary lists all transactions you made during the preceding billing period, the interest applied to the past due balance, any fees, charges, and the total amount owed. The statement close date, credit limit, and days remaining in your billing cycle are also included.

It is important to note that any transactions completed after the statement closing date will appear on your subsequent billing statement. If you wish to review these transactions, you can do this simply by signing into your net banking account or your digital wallet.

  1. Credit Limit Availability

A variety of aspects determines a Credit Card limit. Your credit limit will be lower if you are a first-time user. The bank establishes this cap, and the cardholder is not permitted to exceed it. Some providers permit customers to exceed the limit depending on the terms and conditions.

To avoid debt traps, banks generally advise staying within the limit set by banks.

  1. Payment Due Date

One of the most crucial details to look for on your Credit Card Bill Statement is the payment due date. It is the deadline by which you must pay your fees.

However, making the payment on the last day—the payment due date—can be a bad idea because, if you pay with a check, the payment may take up to three business days to process, costing you interest and a late payment fee. Because of this, you must therefore verify the final payment date and make the payment as early as possible.

  1. Total Amount Due

The total amount due, as opposed to the minimum, includes service fees, penalty payments, interest on the remaining balance, any applicable late fees, carryover amounts from previous billing cycles, and other charges.

To avoid any additional fees, including interest or prepayment penalties, you must look for them in your Credit Statement.

  1. Minimum Amount Due

The card issuers allow you to pay a minuscule amount to prevent the late payment fee if you seem unable to pay the full amount due. You have the choice to pay a minimal amount per month rather than the full amount due with all credit card issuers.

Since it only represents 3% to 5% of the overall amount you owe the bank, this sum is typically relatively small when compared to the overall sum. Therefore, the minimum payment should only be made as a last resort if you are unable to pay the full amount due and do not want to fall behind on your payments.

  1. Banking Fees

You might occasionally ponder how exactly your credit card bill ended up being more than you anticipated. This may occur due to certain bank fees, including late payment penalties, interest charges, foreign exchange markup fees, cash advance fees, etc., so make sure you watch out for such additional bank fees.

  1. Grace Period

The payment due date typically occurs 20–25 days after the close of the billing cycle, according to the practice among credit card companies. For the purpose of paying credit card bills, this time frame is referred to as the "grace period."

According to RBI regulations, banks can only charge a card for a late payment if the amount owed is unpaid for a period longer than three days following the final due payment date. After that, the interest will apply and be calculated starting on the payment due date, although not compensated within the grace period.

  1. Notice of Late Payment

Your Card Statement will also contain a late payment warning, advising you to make at least the minimum payment to avoid paying a late payment fee. Under this warning, the late payment fees will also be mentioned.

  1. Points/Cashback for Rewards

Every credit card has some cashback or reward point offer that cardholders can take advantage of on nearly all of their purchases. A billing cycle's worth of reward points or cash back is also noted in your statement.

So that you can redeem your reward points for the appropriate option before they expire, you can keep records of your rewards cards and their validity.

  1. Transaction Information

Every cardholder must review transaction information as soon as they receive their statement. It is a list of all the transactions that were made throughout the cycle up until the payment deadline. It is solely your responsibility as a credit card user to carefully review the transactions to ensure there are no mistakes.

Examining the transaction details is essential to help you save money for the future and to help you become aware of your spending patterns.

You may also want to know 13 Things You Need to Know About Credit Cards

Conclusion

A credit card statement is a detailed record of all transactions made on your account over a given time frame. In addition to your account balance, statement balance, minimum payment due, and due date, it also displays any payments, credits, interest, and charges you have accumulated during the period.

A statement is made available by your credit card company once a month, shortly after your billing cycle ends. We hope the information above has helped you realize how crucial it is to review your credit card statement regularly.

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