Credit Card Statement: The details of the transaction comes as a statement to the credit card users. The credit card statement is monthly and is generated at the end of the card’s billing cycle. However, no statement can be issued for the period in which there is no transaction or outstanding balance. Many details are available in the credit card statement. Through this statement, customers can keep an eye on any kind of disturbances in their credit card bills.
For those who have taken a new credit card, it can be a bit difficult to understand the credit card statement because it is usually too long. Therefore, credit card companies divide the statement into different parts, so that it can be understood better. Let us know the information in this statement and the meaning of some complex words.
Payment due date
The most important thing in your credit card statement is the payment due date. This is the last date for payment of credit card bill. There are two types of charges on payments made after this date. First, you have to pay interest on the outstanding amount and have to pay late payment fees. Late payment fees may differ from banks.
Minimum amount due
If you cannot pay the entire credit card bill, then you can pay the minimum bill within the due date. This is called the minimum due. It is a small part of the total amount owed. If you pay the minimum amount, then there will be no late payment fee. However, for some time, as long as the remaining balance remains in your statement, you will have to pay interest on it.
Total outstanding
You should pay the total amount due every month so that there is no additional charge. The total amount includes all EMIs, along with the charges on the billing cycle.
Credit limit
Limited credit is given to the cardholder for spending with a credit card, that is, there is a fixed limit for each expense. This is called a credit limit. In the credit card statement, you will get three types of limits – total credit limit, available credit limit and cash limit.
The total credit limit shows the amount that is given to you by the bank on the credit card. There is that amount in the available credit limit, then the amount remaining after purchasing on the card. This is the amount you can still use. Card users also get some card limits and this is usually part of the available credit limit.
Reward Point Balance
You will also see the status of the credit card statement along with the reward points submitted till now. Here you will see a table showing the number of reward points from the previous cycle, the points earned in the current billing cycle, and the finished points.
Account summary
You will also get a summary of your credit card balance in the monthly statement. In this section you will have an opening balance, which is the limit on your credit card when the new billing cycle starts. This will be accompanied by the amount spent on the current cycle and any additional charges incurred in the current billing cycle along with the payment made for the card.
Transaction details
In this section, there is complete information about how much money came in your credit card account and how much was spent. This includes the date and time of the transaction, the amount deducted, any additional charge, place of transaction, etc. You check this section carefully and inform the bank if something is wrong.
