If you understand the credit card statement, you can also catch any possible errors in your credit card bill.
Credit Card Statement: If you read your credit card statement carefully, you will know that it contains a lot of important information. In general, people don’t pay attention to their credit card statements. A major reason for this is the inability to understand technical jargon.
However, if you understand the credit card statement, you’ll also be able to catch any discrepancies in your credit card bill. Today, let’s understand some words which are used in credit card statements.
Payment Due Date
The payment due date is the last date for payment of the credit card bill. If you don’t make the payment by this date, you are subject to two types of charges.
1. You have to pay interest on the outstanding amount.
2. You have to pay a late payment fee.
Minimum Amount Due
If you are unable to pay the entire credit card bill, you can pay a part of it (this is called Minimum Amount Due). The advantage of paying the minimum amount is that there is no late payment fee. However, for the time being, as long as the remaining balance remains in your statement, you will have to pay interest on it.
Credit Limit
Credit limit refers to the maximum spending limit on your credit card. There are three types of limits in the statement. Total credit limit, available credit limit, and cash limit.
Total Credit Limit is the amount given to you by the bank on the credit card. Available Credit Limit is the amount that is left after making a purchase on the card (which you can use). Card users also get some cash limits which is a part of the credit limit.
Reward Point Balance
Along with the reward points, the statement also shows you its status. The reward points earned from the previous cycle points earned in the current billing cycle, and points expired are all mentioned in a table.
Account Summary
The monthly statement contains a summary of your credit card balance. This section shows your opening balance, which is the limit on your credit card at the start of the new billing cycle. The amount spent in the current cycle and the payment made for the card (plus any additional charges incurred in the current billing cycle) are also mentioned here.
Transaction Details
All the information about how much money was credited and what amount was debited is included in the transaction details. This section should be checked carefully and if anything is found wrong, the bank should be informed immediately.
