Credit card details: If you read your credit card statement carefully, you will find that it contains a lot of important information. In general, people do not pay attention to their credit card statements. A major reason for this is the inability to understand technical jargon.
However, if you understand the credit card statement, you will also be able to catch any discrepancies in your credit card bill. Let us understand some of the terms that are used in credit card statements today.
payment due date
Payment Due Date is the last date for payment of credit card bill. If you do not pay by this date, you are subject to two types of charges.
1. You will have to pay interest on the outstanding amount.
2. You have to pay late payment fee.
Minimum Amount Due
If you are unable to pay the entire credit card bill, you can pay a portion of it (this is called the minimum amount due). The advantage of paying the minimum amount is that there are no late payment charges. However, for some time as long as the balance remains in your statement, you will have to pay interest on it.
credit limit
Credit limit means the maximum limit you can spend on your credit card. There are three types of limitations in the statement. Total credit limit, available credit limit and cash limit.
Total credit limit is the amount that the bank gives you on the credit card. Available credit limit is the amount that is left (that you can use) after making a purchase on the card. Card users also get some cash limit which is a part of the credit limit.
reward point balance
Along with the reward points, the statement also shows you its status. Reward points earned from previous cycle points earned in the current billing cycle, and expired points are all mentioned in a table.
account summary
The monthly statement contains a summary of your credit card balance. This section shows your opening balance, which is your credit card limit at the beginning of the new billing cycle. The amount spent in the current cycle and the payment made for the card (as well as any additional charges made in the current billing cycle) are also mentioned here.
description of transaction
The transaction details include all the information about how much money was deposited and how much amount was debited. This section should be carefully checked and if anything is found wrong, the bank should be informed immediately.
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