Most people do their credit card applications without giving it much thought. It is necessary to keep specific things in mind before opting for a credit card. Whenever someone starts to earn money, they often think about getting a credit card.
But only getting a credit card is not enough. People should know how to read and understand credit card statements. Those who want to build their credit profile need first to choose a credit card. Even those who do not possess any credit history can get a credit card. But after getting a credit card, they can use it to increase their credit score.
And if you recently got your credit card, then you need to know all about the credit card statement. Every month the credit card companies such as Bajaj Finserv have to send their statement to the customers through email or send it by post to their residential address. Let us check how one should read and understand their statement.
- The due date for payment
The first thing that everyone should check when they get their statement for the credit card is the due date for payment. Those who miss out on the payment of the outstanding money need to pay two different extra fees. The people need first to pay the interest on the amount due, and secondly, they also need to pay the company late fees. The late fee is a fixed sum of money that the individual needs to pay, and the interest percentage is calculated on the money. Those who fail to pay the minimum amount by the due date need to pay the late fees.
- Minimum amount due
Every credit card company offers their customer a minimum amount option for those who fail to pay the entire amount due after every billing cycle. The minimum amount is a small fraction of the total outstanding amount. Those who can pay the minimum amount do not have to pay any extra late fees. Even though you do not have to pay the late fees, you need to pay the interest.
- Total outstanding
If you want to stay away from any extra charges, then make sure to pay all the outstanding amounts. This includes all the EMIs that you need to pay.
- Credit limit
People should keep an eye on their total credit limit. Every bank will sanction different credit limits to their customers based on different things. Once you make a purchase using your credit card, you will see the amount of money left. This is the credit limit. Some banks also provide their customers with cash limits.
- Reward point balance
When you receive your statement, you can also check the reward points that you have accumulated after the end of each billing cycle. The statement will show you the status of the previous points accumulated along with the present reward points and the lapsed points.
- Account summary
People can see that with every monthly statement, the credit card company also sends an account summary. The summary shows the credit limit, the amount you have spent, plus any extra charges. This is a quick way to get an overview of the entire bill of the current period.
- Transaction details
In the statement, people have the option to check all the details of their transaction in that certain billing period. In this part, you will check all the dates and times of a particular transaction. Along with it, you can also look at the place of transaction, the amount deducted, any extra charges, etc. This is an important section that you should check carefully and raise an issue if you notice something suspicious.
