Things You Must Check For In Your Credit Card Statement

Credit cards are a fantastic source of money. They enable you to improve and raise your credit score in addition to providing you with financial flexibility. Additionally, each time you use your card for an eligible purchase, you earn cashback, points, or air miles. The use of your low-interest credit card for a billing period is listed in summary form. When it comes to reading credit card statements, understand how challenging it can be. Your overall credit card balance is calculated using a variety of terms, figures, credit card statements, and percentages.

Observations regarding your credit card statement

When using a credit card, it's essential to understand the declaration you receive at the end of your billing period. The following things to check on your credit card statement are

The Availability of credit limits

A credit card's limit is determined by several variables. If you have never used the facility, your credit limit will be reduced. This limit is set by the bank, and the cardholder is not allowed to go over it. Depending on the policies and conditions, some providers allow customers to exceed the limit. To avoid debt traps, banks usually advise sticking to their limit.

Due Date for Payment

The payment due date is one of the most significant items to look for on your credit card bill statement. You have to pay your fees by that date. However, it may not be a good idea to pay on the last day before the payment is due. If you pay by check, it could take up to three business days for the payment to be processed, going to charge you late payment fees and interest. Therefore, you need to confirm the payment due date and send it as soon as you can.

Minimum due amount

If you appear unable to pay the full amount due, the card issuers will permit you to pay a small sum to avoid the late payment fee. With all credit card companies, you have the option to pay a smaller amount each month rather than the full amount due.

This amount is typically small compared to the total amount due because it only accounts for 3% to 5% of the total. If you are unable to pay the entire amount due and want to stop falling behind on your payments, minimum payment should only be made as a last resort.

Banking fees

You might wonder from time to time how your credit card bill ended up being higher than you expected. This might happen as a result of certain bank fees, like interest rates, late payment fees, cash advance fees, and others. So be careful to avoid these extra bank fees.

Cashback or Points for Rewards

Credit card users can benefit from some cashback or bonus point offers that come with each credit card on or almost all of their purchases. Your statement also includes a total of the cash back or reward points earned during a billing cycle. So that you can use your reward points for accurate results before they expire, you can keep track of your reward cards and their validity.

Conclusion

A credit card statement is a detailed account of every transaction you made during a specific period. Along with your account balance, statement balance, required minimum payment, and due date, it also shows any payments, credits, interest, and fees you accrued during that period. Your credit card company sends you a statement once a month, right after your billing cycle is over.

Read More: How To Choose The Best Credit Card For Your Needs

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