A credit card statement is your credit card’s bill which is issued by the concerned financial institution every month. As a cardholder, you need to clear the outstanding amounts within a given due date.
It is essential to read the statements sincerely so that you understand your expenditures and identify errors, fraudulent activities, etc. if any. Checking this statement is quite easy and doesn’t need any financial intelligence. Only consider a few basic things to assess your credit card statements per month.
- Statement period
Statement period is the time period between two billing dates. Your credit card bill consists of all the transactions you have made during this period.
- Payment due date
Payment due date is the deadline within which you have to pay your bill. You can get up to 25 days from the end of your statement period to clear off the bill. This is also known as the grace period when financial institutions do not levy interest on the total amount due. It’s only when you default that you attract heavy interests.
- Opening balance/closing balance
Opening balance is the unused amount of your credit limit at the beginning of your statement period.
The closing balance is your remaining credit limit at the end of your statement period.
Payments/refunds are the amounts you have already paid/received in your previous statement period. Any remaining balance will get added to the latest statement.
- New charges/transactions
New charges and transactions are the amounts you have spent with your card during your statement period.
- Total amount due
The total amount due is the full amount that you owe your credit card company. It is all the transactions compiled, that you have made with your card. Paying this amount within the due date will improve your credit score.
- Minimum payment due
The minimum payment due in your credit card statement is the amount you should pay if you fail to clear the total outstanding within the due date. This amount is a particular percentage of the total amount and ranges from 2% to 3%.
Refrain from paying the minimum amount due as it lowers your credit score. Also, the full amount due is carried forward to your next month’s statement when you pay the minimum.
- Available cash limit
Available cash limit is the amount available for withdrawal from ATMs using your credit card.
Do note that you will incur high interests on repayments for ATM cash withdrawal using these cards. However, feature-rich credit cards like the Bajaj Finserv RBL Bank SuperCard enable you to do with 0% interest rate for up to 50 days.
The transactions you have made during your statement period are listed in the statement. These include the dates of every transaction, description, foreign currency amount (if any), etc.
This section also includes the taxes and cess you have to shell out on your credit card bill payment.
- Reward points summary
Some credit card statements also include an overview of reward points available with your card.
This section includes:
- Opening points – Reward points at the beginning of your statement period.
- Earned points – Points you have accumulated during your statement period.
- Redeemed points – Points you have redeemed during your statement period.
- Closing points – Points at the end of your statement period.
Ensure to use your credit card the right way to increase your reward points. For instance, the SuperCard brings up to 2 reward points for every Rs. 100 which you expend.
Bajaj Finserv also has pre-approved offers that save you time when availing these credit cards by making the process hassle-free. Pre-approved offers also come with business loans, home loans, personal loans, and numerous other financial products and services. Provide only your name and phone number to check your pre-approved offer.
Checking these things in your credit card statement will enable you to manage your finances correctly. Report the concerned financial institution if you find any mistake or fraudulent activity at your earliest.
Gaurav Khanna is an experienced financial advisor, digital marketer, and writer who is well known for his ability to predict market trends. You can find Gaurav on Linkedin.