Posted by Going through your credit card statement is a great way to assess your expenses and manage your finances. Even though every cardholder receives their statements every month, many don’t assess them thoroughly and just look at the total dues for a quick overview.
Checking your statement helps you understand your spending patterns, recurring expenses and even track unnecessary expenses that you can minimise to save money. In addition, it can also help you safeguard your finances by helping you spot any suspicious transactions initiated through your card.
Here’s an overview of credit card statements and how to read them.
What is a Credit Card Statement?
It is a document that contains information about your credit card transactions during the last billing cycle. It provides essential details, such as:
- Total credit you have utilised during the month
- Transactions and payments for which you have used your credit card
- Total dues that you need to repay
- The date on which you need to make the repayment
- The minimum amount you need to pay to avoid interest charges
Your credit card issuer sends your statement once a month, at the end of your billing cycle, through the following modes:
- Offline mode by mailing it to your residence
- Online modes via portal, mobile app or email
Here are some benefits of checking your statement thoroughly:
- It helps you verify your transactions and avoid any confusion in the future
- It provides a detailed record of your monthly expenses free of cost
- It safeguards you against fraudulent activities by helping you spot suspicious transactions
- It helps you check the interest and other charges applicable to your credit card account
- It supports better financial management by helping you cut down on unnecessary expenses
- It helps you capitalise on rewards and other perks offered by the card issuer
How to Read a Credit Card Statement
Here are some important components of your card statement that you should pay attention to:
Account Information
This section includes essential details of your account, such as:
- Your account number: Based on the issuer, this consists of the last 4 digits of the account number or the entire number
- Your name and residential address: You must check this information to ensure that you receive the correct bill and your repayments are recorded accurately
- Billing cycle dates: You also get information about the dates during which your bill is calculated
Account Summary
This section includes details regarding the payments you make using your card, including:
- Total balance: You get details about the total amount you owe to the card issuer
- Due dates: These are the dates on which you need to make your bill payments every month
- Payments: The statement also provides an overview of the transactions
- Available credit: You can also check the total credit card limit available to you and how much you have utilised from the available limit
Payment Information
Your statement includes all the details of the transaction, such as:
- Payment date: This is the date on which you have initiated a transaction
- Details of the merchant: Your statement also includes the name, category and other details of the merchant you made the payment to
- Bill amount: This includes the total payment made for a specific transaction
Interest and Other Charges
You also get information about the associated fees and charges, such as:
- Interest charges: You can also check the interest charges applicable to your account if you chose to make a partial payment of your credit card dues
- Overlimit fees: The statement also provides information on the overlimit fee if you utilise an amount over and above your available credit limit
- Cash withdrawal charges: If you chose to withdraw cash using your credit card, you can check the associated withdrawal charges here
Warning for Late Payment and Minimum Payment
Through your card statement, you also get the following information:
- Late payment warning: This section of your statement highlights the consequences or details of late payments of your card dues and the applicable charges
- Minimum payment warning: You also get information about the consequences of making only part payment of your bill and the applicable penalties
Being alert regarding any important changes in the policies or rules related to your card is also essential to stay on top of your finances. In addition, choosing the right credit card and a trustworthy issuer can also be helpful in managing your finances. A great option to look into is the One Credit Card.
Through the powerful One Credit Card app, you can run a credit card balance check and track all your expenses to get a clear picture of your finances. What’s more, you can get great deals and discounts on shopping and dining, up to 5X rewards on top two spends, hassle-free EMI conversion of your large purchases, and much more. Apply now to get started.