Since several financial institutions are coming up with attractive credit card offers, more individuals than ever are now opting to avail of a suitable card to benefit from them. Using a credit card comes with its set of unique perks, starting from purchasing high-end products during a cash shortage, applying for loans against the unused credit limit, etc.
However, to maintain a decent credit score, it is advisable to keep an eye on your expenses and utilize credit as per the ideal issuer requirements. One must also go through the statement periodically to track expenses from time to time. Although the detailed information can seem quite tricky to understand, one needs to gain a clear idea of how to check credit card statement to make the most of the details recorded therein.
Things to check in your credit card statement
Card statements consist of the utilized credit amount as well as both interest and non-interest charges, and the unused limit, among other critical details. Since monitoring the statement seems beneficial for the user to detect potential issues related to their credit usage, here are some key sections that help you with these requirements.
- Payment information
In this specific section, users get to see them lined up payments they need to make for the concerned billing cycle, including the total amount due and the minimum amount due.
The great advantage users get by using credit cards is the easy minimum payment option. You can utilize this facility if you are on a strict budget. Nevertheless, it is not the ideal option to go for.
The minimum due option comes with added liabilities for the following billing period as the remaining amount gets added to the following bill. However, you can still make good use of it during urgencies by making the payment in time to avoid any penalty fees.
- Credit limit
There are certain important things to be aware of before applying for a credit card that also includes learning how to read the credit card statement. Among them, checking the credit limit availability is a crucial piece of advice one must pay heed to.
In this particular section, users can spot three kinds of credit limits that are segregated as total credit limit, cash limit, and available credit limit.
Total credit limit refers to the amount that was initially approved by the card provider in the beginning while the cash limit refers to the amount a user can avail as cash during a billing cycle.
Also, the available credit limit denotes the unused limit remaining after all the purchases are made until the concerned date. While users get to use the credit limit as per their requirements and make cashless payments, keeping an eye on this section helps them to be aware of their purchases.
- Transaction details
This section provides detailed information on how one has spent the funds within the billing period. Users can see complete details about the time, place, and date of these transactions, deducted amount, additional charges, etc.
The transaction details section is the ideal place to identify any discrepancy from the financial institution’s end or any unauthorized card usage so that you can inform the issuer in time. Especially, if you use different types of credit cards for various lifestyle needs, doing so can help reduce any discrepancy.
Thus, knowing how to read the credit card statement properly, and assessing these details helps to get rid of unwanted liabilities.
- Reward point balance
Credit card statement also has a separate section dedicated to rewarding point balance, which helps you identify the remaining points to be used along with their validity. A user can thus decide when to redeem them and avail future savings.
Holding a credit card, nevertheless, also comes with additional responsibilities that become challenging to maintain at times, such as using it wisely for a positive impact on the credit profile. On the brighter side though, available types of cards for every lifestyle and need help segregate the expenses. One can also go for credit cards like the Bajaj Finserv RBL Bank SuperCard to experience a smooth conversion of high-value purchases into affordable EMIs.
Additionally, the issuer of this card also brings pre-approved offers that make the entire financing process less time-consuming and simple. These offers are also available on several financial products such as personal loans, business loans, credit cards, etc. To check your pre-approved offer, you can enter your name and contact information.
While opting for a new card, not only should one know about the ways to wisely use the credit card but also be informed of these necessary details to avoid unwanted charges. Users can make the most of their cards’ facilities by learning how to read the credit card statement correctly since it allows them to understand the best use of the available features these cards come with.