Posted by As a credit card holder, receiving your statement every month can sometimes be overwhelming. It contains important information about your credit card status, your spending habits, your payments, and any fees or interest charges that may have been applied to your account. However, knowing how to read and interpret your statement is essential to managing your finances effectively. In this article, we will discuss the essentials you must know when viewing your free credit card statement.
First and foremost, it is important to note that credit card statements for a free credit card are typically sent out once a month. You can receive your statement either through email or through physical mail. Your statement will contain information about your free credit card account, including your account number, your credit limit, your available credit, and the due date for your payment.
The first thing you need to check when you receive your statement is your credit card status. This will tell you whether your account is in good standing or if there are any issues that need to be addressed. Generally, there are three possible credit card statuses: current, past due, and over-limit.
A current status means that your account is up-to-date with all payments and has not exceeded the credit limit. A past due status means that you have missed a payment or have not paid the full amount due and the payment is past its due date. An over-limit status means that you have exceeded your credit limit either through purchases or cash advances.
If you find that your credit card status is not current, you must take immediate action to rectify the situation. For example, if you have a past due status, you should make a payment as soon as possible to bring your account up-to-date. Similarly, if you have an over-limit status, you should make a payment to reduce your outstanding balance. Failure to do so can result in late fees, interest charges, and damage to your credit score.
Once you have reviewed your credit card status, the next thing you need to do is to look at the summary of your account activity. The summary will include the opening balance, the purchases made during the billing cycle, any payments made, and any fees or interest charges that have been applied to your account. This summary will give you a clear idea of how much you have spent, how much you owe, and how much interest you are being charged.
It is important to note that credit cards come with a grace period i.e. the amount of time between the purchase date and the payment due date during which interest does not accrue. This grace period may vary depending on the type of credit card you have, but it is typically between 21 and 25 days. It is important to make sure you are paying your balance in full before the due date to avoid paying interest charges.
The next part of your statement will be the list of transactions. This section will include all the purchases made using your credit card during the billing cycle, along with any fees or interest charges that have been applied. It is important to review this list carefully to ensure all purchases are accurate and accounted for. If you notice any discrepancies, you should contact your credit card company immediately to rectify the situation.