You get a statement every month for the credit card you use. This statement provided by the credit card provider contains details of the entire month’s transactions. There is a lot of information including what was purchased, how much bill was paid, charges and interest on credit card. But often do not read the loan statement carefully and pay the bill. Or delay in bill payment. In such a situation, loss can also occur. Experts say that whenever you get a credit card statement, read it thoroughly and act accordingly. Let us know which seven things must be read in the statement.
no suspicious activity
First of all keep this in mind in the credit card statement. Review every transaction carefully to make sure you recognize the merchant and the amount charged. If you see a charge you don’t recognize, contact your credit card issuer immediately.
statement date
Understanding when your statement has been issued is akin to gaining access to your financial records. This marks the beginning of your credit card activity for the month. Also if you have delayed in settling your previous bill, interest will start accruing from this date. Being aware of this may enable you to better strategize your payments and prevent unnecessary interest charges.
bill payment due date
This is the deadline to make your minimum payment to avoid late fees. Late fees can be quite high and can hurt your credit score. To keep your account in good standing and avoid these negative consequences, it is important to pay at least the minimum amount by the payment date.
minimum amount payable
If you find yourself unable to pay the entire amount due, card issuers allow you to pay a smaller portion to avoid late payment costs. You can choose to pay a small amount each month instead of the total balance amount payable to all credit card companies. This payment is usually much less than the total amount payable to the bank as it is only 3% to 5% of the total amount. If you are unable to pay the entire outstanding amount and do not want to fall behind on your payments, you should only make the minimum payment as a last option.
grace period
After the payment due date, there is a grace period which acts as an important buffer. The Reserve Bank of India sets a three-day window for late payment charges, but credit card companies usually offer a longer period. It is important to know this deadline to avoid late payment charges. Planning your payments within this time frame ensures a smooth and stress-free financial journey.
credit limit availability
Your credit limit is not a number. This is your financial limit. Knowing how much of your limit is available can prevent unintentional overspending. Keep a close eye on your credit limit, especially when you have a significant outstanding amount.
Transaction Information
Each cardholder is required to review transaction details as soon as he receives his statement. The statement is a list of every transaction made during the cycle till the payment due date. As credit card users, you are solely responsible for thoroughly checking transactions to ensure that no errors occur.
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