Credit Card Statement

It refers to a monthly summary of your credit card account that the credit card company provides. It contains details of all the transactions made during a billing cycle. 

 

While the terms and numbers in a statement may seem complex at first, comprehending them is crucial to maintaining your financial health. Reviewing your statements regularly will allow you to keep track of the following aspects of your credit card usage:

• Monitor spending patterns

• Identify discrepancies, unauthorised charges or billing errors

 

Thus, checking your statement regularly comes in handy to minimise your liabilities in case of unauthorised transactions. Reporting such issues promptly can limit your responsibility.

This crucial document comprises all the details related to your credit card account and transactions. Below are the key components typically included in a statement:

 

Summary of Account Activity

• Transactions, including payments, credit, purchases, balance transfers, cash advances, fees, interest charges, and amounts past due

• New balance

• Billing period

• Payment information like the total due balance, minimum payment, and payment due date

• Late payment warning as well as fees and applicable interest rates on late payments

• Minimum payment warning with repayment estimates and future costs

• Notice of changes to interest rates, including penalty rate and notice period

• Other changes to account terms like rate and fee increases, and notice period

• Applicable fees and interest charges

• Year-to-date totals

• Interest charge calculation

• Rates summary

Keeping a record of your transactions helps you stay informed and be more responsible. Here are some of the benefits of studying your credit card statement frequently:

• Monitor How Much You Are Spending: It provides a clear record of all your transactions, helping you stay within budget and plan your purchases for the next month

• Avoid Late Payment Charges: Statements show key details to help you plan payments and avoid late fees

• Identify Discrepancies: Reviewing your statement helps you spot any errors or unauthorised charges to protect yourself from fraud 

• Reduce Costs: It helps you understand interest charges, encouraging timely payments to minimise these added costs

When errors occur in your credit card statement, it’s important to address them promptly to avoid complications. Here is a quick guide on how to manage these errors effectively:

1. Keep the Paperwork Ready

Have copies of your statement, receipts, and proof of the error handy to support your claim.

2. Contact Customer Service

Call the number on your bill or card and explain the issue. Some companies may suggest filing disputes online. 

3. Write a Letter 

Write a letter including your name, account number, and an explanation of the error. Send it to the grievance redressal address mentioned in your statement.

4. Settle Valid Charges

Only pay the undisputed charges during the investigation.

Checking your statement online is a straightforward and convenient process. Here is how to check a credit card statement online:

Get Your Credit Card Statement by Email

Here is how:

1. Log into your email account

2. Find the mail with your credit card statement

3. Enter the code for viewing your password-protected statement

If you haven’t yet registered to receive statements by email, you can do so by logging into your online credit card account. You can also call customer care. 

Check Your Credit Card Statement via Netbanking

Here is how:

1. Log into the net banking portal

2. Click on the ‘Statement’ or ‘Enquire’ options under ‘Credit Cards’

3. Download recent and previous statements

You can also keep a copy of your statement for future reference by saving it to your device. Here is how to download a credit card statement through the net banking process:

1. Go to the bank or credit card issuing company’s credit card net banking portal

2. Log in with your credentials

3. Navigate to the credit card section

4. Select the option under the ‘Statement’ tab to view your latest credit card transaction statement 

5. Click on the ‘Download’ option to get the statement PDF

6. Go to the downloaded PDF and enter the credit card statement password to get the billing-related information

This facility allows you to receive a password-protected document at the end of every billing cycle. Every time your e-statement is ready, you will receive an alert via SMS or email. Follow these steps to receive soft copies of your statement:

1. Log into your net banking account

2. Go to the ‘Credit Card’ section

3. Click on ‘Request e-Statement’

Credit card companies typically calculate the minimum due amount as around 5% of the total amount you use. Check the following example:

 

Consider that the credit card company generates the statement on the 25th of the month. The payment due date is the 5th of every month. Here is how the company will calculate the minimum due amount for credit transactions of ₹5,000, ₹2,000, and ₹6,000.

Credit cards function like a small loan. Every time you buy something, you borrow more money from the financial institution. The total amount you borrow is called the ‘outstanding balance’.

 

The institution does not expect you to pay back everything at once. You can make small monthly payments, which is the minimum due amount. 

 

In this example, the bank sets the minimum due amount at 5% of the total amount you borrowed (the outstanding balance). So, if you spent a total of ₹13,000 on your card, the minimum due amount would be 5% of that, which is ₹650.

 

This minimum due amount is calculated based on the outstanding balance on the day the statement is generated (25th July). However, paying just this amount is not ideal as the remaining balance incurs interest. It is best to pay the total amount due, which is ₹13,000. 

 

This prevents any interest from accumulating and allows you to maintain your credit score.