As a credit card holder, the first thing people usually check is the total amount due and the due date in their statement. These are necessary things to check for sure, but sometimes we all forget that the whole information needs to be reviewed, not just the due amount. We need to remember that there are many other essential things to look into. The credit card statement holds a lot of information, including your details and credit history of the past month or ongoing debt.
While reviewing your monthly statement, you’ll find various categories of information. Such information is a detailed version of a variety of characteristics related to your account. These details include all the aspects of your credit; you can also consider it as your monthly expense statement, similar to the ones we have with our debit cards. Although the payment and transactions are posted after the billing cycle is closed, they won’t be reflected in the statement. There are also things we need to look out for in credit statements in case of errors and mistakes.
Credit Card Statement Checks
Here is a list of things you need to look into while checking your credit statement –
This is a summary of the credit card account status where you will find details like current balance, fees, and interest charges since the last billing date, available credit amount, and closed billing cycle date. This is the very first section of your bill and has the most critical information.
This portion needs to be checked thoroughly because, in case of errors, it can influence your credit history and your credit score. In case you do find the errors, you need to contact your card issuer or the credit bureaus for the correction.
This side of the statement will show your credit limit, available credit limit, and available cash limit. These sections are necessarily crucial as from this; you understand the present figures of your credit card in India.
These limits are advised not to be crossed in any situation, as such practices will harm your credit report. Because your credit utilization ratio will be more than what it needs to be, your chances of financial aid in the future can be compromised.
The payment information section shows things like the new balance, minimum payment (current and past due in case of carryforwards), total minimum amount due, and due date. These payments need to be taken care of to avoid any late payment fees. This section of your credit card statement also includes a detailed view of all the transactions you did in the billing cycle.
In case you are paying less than the minimum due amount or after the due date, you will face situations like late fee charges, including an increase in interest rates; in case the bill is delayed by more than 60 days, late payments will be added to your credit report. These counterattacks by the credit issuers will leave a mark on your credit history, directly impacting the information with the score.
Reward Points Summary
The reward points summary entails the opening balance, earned rewards, adjusted rewards (in case of cashback), and closing balance. This section shows the number for your rewards and other details related to the same. Some banks that offer rewards expiration features can include the expiry date for the number of rewards as well.
This section needs to be checked and compared with your total amount due in case of cashback and bill adjustments. The numbers of your amount due and rewards adjusted should match; otherwise, you can lose money.
There is also a section, maybe at the bottom of your bill, which shows your past dues (if any). This can include a detailed version of your past few month’s balance. It can also show the over-limit and current dues.
There are other things like your name, account details, different dates, different transactions, and many other aspects that are important to check. In case of errors, the authority needs to be updated with the correction information as soon as possible. Such errors might go unnoticed, but we need to be careful as the more you delay in making corrections, the more difficult it will be.
The credit card statement holds great importance in its content, which is often overlooked. The impact of this negligence can be directly seen in your credit reports and credit scores. Essential things like account summary, credit limits, payment information, reward points summary, and past dues all need to be checked thoroughly to make sure that everything is correct. The mentioned personal details should also be error-free so that things remain on track.