7 Things to Check in Your Credit Card Statement

Credit cards are one of the most convenient financial instruments. We can use them as our go-to payment source when we don’t have enough cash to expend. They are convenient, easy to carry, and can be safely stored. They provide us with financial flexibility and help improve our credit scores. What’s more, we can receive multiple benefits, from cashback to air miles, when we make an eligible purchase via credit cards.  

Credit card statements provide a detailed account of every transaction we make using our credit cards in a certain period of time. Here we can see a summary of where, when, and what we have spent on our credit card during a specific period. A credit card statement tells us how to calculate our remaining credit balance, i.e., how much more we can spend on the card. However, this in itself poses a challenge! From jargons and abbreviations to percentages and numbers, your credit card statement is full of data that is hard to decipher. But we are here to take you through it. Read on to better understand the various parts of a credit card statement.  

What does a credit card statement include?

Knowing what to look for in our credit card statement helps to understand where we stand credit-wise and how to spot any errors that may have crept into the calculation:  

1. Account details

There are some standard components under this section that are common to every statement, such as:  

• Name of the cardholder 
• Email address 
• Residential address 
• Card number 
• Account number 
• Billing Period 

It is important to check that the above personal information – from spellings to numbers – is accurate. The card and account numbers may be expressed entirely, or only their last 4 digits may be visible, with the rest replaced with asterisks (*) for security reasons. We should always carefully check and verify the starting and concluding dates of the billing period to ensure that there are no transactions included outside this term. Moreover, these dates also help calculate the interest payable on the credit amount we have spent.  

2. Account summary

All your transactional information, such as the bills you paid, balances, fees, dues, etc., are outlined here.  

• Payments and credits: This part includes the details of payments you made on the card and the credited amount you received (in the linked account).  
• Due date: Cardholders are given a stipulated due date, usually the same day every month when they are provided with a certain period to pay the dues for that month before a late fine is charged.  
• Fees/charges: Late fines, fees incurred due to balance transfer, foreign transactions, charges for paying over the credit limit, etc., are noted in this section of the statement. 
• Balance/dues: This shows the amount you need to pay as your credit card bill. It includes the interest, amount credited, fees or charges.  

3. Transactional information 

Basically, this is a detailed proof of all your guilty pleasures. It is an important section of your statement that shows the amount you spent using your credit card, when you spent it, and what you spent it on. It includes the day when the card was used to make a payment, the payment recipient (vendor name), place and time of the transaction, and the amount spent. Each transaction is marked with a transaction number. A transaction number is a unique transaction ID that can be used to check its details online. 

4. Credit card information

This portion elaborates on the critical financial details of your statement, including-  

• Total credit balance: This shows the net amount you have been charged against your credit card in a certain period. Your card’s credit balance will revert to zero on paying this off.  
• Total amount due: This includes any applicable late fees, interest on the remaining balance, penalty payments, service fees, etc. Moreover, the carryover sums from earlier billing cycles and other miscellaneous charges are also displayed here.  
• Minimum amount due: There is also a section that shows the ‘minimum due amount,’ referring to the least amount you need to pay the bank to avoid incurring a late fee. This value corresponds to only 3 to 5 percent of the total amount owed to the bank or financial institution. 
• Credit available: This is the amount of money we can still use on credit out of the set stipulated limit, that is, how much more you can spend using your credit card until you clear your dues. Financial experts always advise spending up to 30% of the available credit. Spending more than that repeatedly denotes that one tends to amass dues by transactions. This in turn, adversely affects your credit score.  

5. Total interest and fees

Your bank charges you a certain amount as interest to allow you to make payments on credit. Furthermore, this portion of the statement clearly outlines the various fees you have been charged in that billing period for cash advances, foreign exchanges, etc. It is necessary to check for them to know how much you are paying over and above your bill.  

6. Interest calculation  

Many people don’t know this but usually, your credit card statement will also provide detailed information on the latest interest rates charged against each type of transaction. This is calculated via the Annual Percentage Rates (APRs) and is different for purchases, transfers, cash advances, etc. It is good to look at this information to be well informed of the money you are paying over your transactions. 

7. Rewards  

Be it a bank or a non-banking financial company (NBFC), credit card issuers offer a multitude of benefits for using this facility. These usually fall under three categories:  

• Cashback: This includes returns on payments made, either reverted to your account or to your credit amount to reduce your net credit card bill.  
• Coupons: These include various coupons of discounts, offers, cashback, and others, which can be redeemed at restaurants, retail shops, cinema halls, gaming apps, online shopping sites, etc.  
• Points: Points are usually the most common form of reward. They are accumulated over several transactions conducted in a period. The key advantage of the points system is that it offers you a buffet of choices. You can redeem them for cashback, coupons, credit miles, and more.  

Knowing what your rewards entail and their validity helps you cut down on future payments and make the most of lucrative offers at an affordable price!  

With the rise in digitalisation, every little detail about your credit card usage is available at your fingertips. You can get your credit card statement online from your card provider’s website or app whenever you want. Stay updated on your payments and dues to maintain a good score, gain lucrative rewards, and make the most of your credit card.  

Different credit cards offer different rewards, cashback, and schemes to help save on your credit bill and lower your credit dues. Whether you are currently using a credit card or planning to start using the facility, staying updated about the new cards being offered is always a good idea. Who knows, maybe you’ll find a card better suited to your credit needs! To start, you can always check out the latest credit card options available on Bajaj Markets.