Credit Card Statement: Just like everything has changed, the way people spend money has also changed. Earlier people used to stop spending once the money was spent. But now they use credit cards. People have got a lot of convenience due to the advent of credit cards. If someone wants to buy something but does not have the full amount to buy it, then he can easily buy any item using credit card on EMI.
By the year 2024, there will be more than 101 million credit card users in India. One has to be careful while using credit cards. If you do not know how to use it properly, then you can suffer a lot of loss. Credit card bill is generated every month. Which you have to pay within the limit of 30 days. Otherwise, you are charged more penalty. Today we will tell you 7 such things in the credit card statement which you should pay special attention to.
Billing and payment date
When you see a credit card statement, first of all you should check the billing date and the date of payment. Generally, there is a time period of 20 to 30 days between the billing date and the payment date. During this time, you do not have to pay any extra charge for paying the bill. If you do not have money to pay the entire bill on the due date of the bill, then you can make the minimum payment. Manage your expenses accordingly so that you get more time to make the payment.
Because if you miss a payment, you will have to pay a late fee. Along with this, you will have to pay interest. Missing a payment also affects your credit score a lot. For this, it is better to use the auto debit feature with your credit card.
outstanding amount
The amount due in your credit card statement is the expenses incurred during the billing cycle and has to be paid before the due date. There are some interest charges in this and some fees are also included. If you use more than your credit limit.
So this affects your credit score. You get 10 to 15 days for repayment. If your bill is generated around the date of 1 month, then you get up to 45 days to repay any payment.
Minimum Amount Due
In the credit card statement, along with the total amount due, you also see the minimum amount due. After the credit card bill is generated, if you have spent too much and you do not have the full amount to pay, then you can pay a minimum amount due. However, if you pay the minimum amount instead of paying the entire bill.
So your credit card remains active. But the outstanding balance goes into the next month’s billing cycle. And interest is also charged on it. Generally, the interest on credit cards is high. That is why it is better that you pay the entire bill on time.
Interest rates and finance charges
According to BankBazaar’s AGM Ravi Kumar Diwakar, you should know about the interest rate and finance charges beforehand. When you take money for any work through a credit card, then you have to pay interest on it. This is also called Annual Percentage Rate (APR). When you do not pay your entire outstanding bill on the due date and pay the minimum payment, then finance charge is applied on the outstanding amount, which is visible to you in the credit card statement. If you take care of these things, then you will not have to pay unnecessary interest.
other charges
The credit card statement contains information about various types of fees and charges. Such as annual fees, late payment fees, cash advance fees and over limit fees. These fees are applicable according to the way you have used your credit card. Check all these things carefully in the credit card statement. If you feel that any extra charge has been levied, then immediately talk to the bank or company that issued your credit card about this.
Transaction Record
The most important part of the credit card statement is the transaction record. It contains all the information about which transaction you made, when and for what purpose. If you feel that you did not make any transaction and if something looks wrong, then you can complain about it to your credit card company or bank. Nowadays, a lot of frauds are being done on credit cards, so it is better that you check the transaction record.
Reward Points
When you make a transaction on a credit card, you are given reward points. As these credit points accumulate, their expiry date also starts. You can check them in the card statement. Many credit cards give you good offers and good deals in exchange for reward points. If you check the statement for reward points and use them before they expire, you can get good benefits.
