Why is it a mandate to understand the credit card bill statements properly?
3 min readAccording to a recent market survey report, the Indian credit card industry is likely to grow at a CAGR of 25% between 2020 and 2025. Even though the number of credit card users has increased significantly, not all are aware of the importance of a credit card statement.
A credit card bill statement is generated after the end of a billing cycle, and it contains the necessary information about your credit card dues. Hence, being aware of its components and reading it properly is essential to avoid failing to repay the dues on time.
Components of a credit card statement
- Personal information
The credit card bill contains the personal information of the user at the top. It includes name, phone number, email id, address, etc.
- Account summary
This section of credit card bills includes the summary of your payment card’s activities over a month. Typically, it offers an overview of total transactions that occurred via that particular account.
A point to note here is that any transactions after the statement generation date will not appear here. Instead, it would appear in next month’s bill.
- Payment details
In this section, you will find the necessary information regarding the payment of credit card dues. Additionally, you can also find the methods of credit card bill payment in this section. It includes online credit card payment methods as well as offline ones.
- Credit limit
In this section of the credit card statement, you will find the necessary details about the credit limit. It refers to the pre-set limit that every card can users can borrow up to. Here, they will find the total limit and the remaining balance following a month-long usage of the payment card.
Moreover, certain financial institutions’ credit card bills may have a separate section for the outstanding balance, which reflects the total due amount.
- Billing information
In this section of a credit card bill, you can find a credit card’s billing information. It includes the billing cycle details, which is the one month period during which your credit card transactions are recorded. Knowing this information will help you to repay your credit card debt easily.
Along with that, you can also find the details of the interest-free period, which is usually 15-20 days depending on the issuer. Moreover, this section also reflects the payment due date, which is the last date to pay your credit card outstanding. In case you have accrued any dues, you need to settle it within this particular date of every month.
Also, you can find information regarding the minimum due amount, in this section. It is the amount that you need to pay to avoid accruing any late payment charges. Typically, it is 5% of the total outstanding.
- Reward and offers
In this section of a credit card statement, you can find the reward points you have accumulated over a period. It may contain finer details of the same in certain bills. Additionally, this section may also include any additional offers that you are eligible for.
Moreover, with a credit card like the Bajaj Finserv RBL Bank SuperCard, you can avail of benefits like 50-days interest-free ATM withdrawal, easy loan against credit cards, etc.
It continues further with the pre-approved offers that make the loan application process hassle-free and time-saving. It is applicable to financial products like credit cards, personal loans, business loans, etc. You can check your pre-approved offers by submitting the essential contact details.
A credit card statement offers a concise presentation of your financial activities. Hence, it is essential to know how to read your credit card statement properly and the importance of the information it offers for a pleasant credit card user experience.
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