Since the inception of the digital India initiative, credit cards have become one of the most sought-after financial products. According to RBI data, banks have recorded Rs.50,311 worth of credit card spends in solely August 2020. For credit card users, nevertheless, it is essential to review their credit card statements from time to time to manage credits efficiently.
A credit card statement is a crucial financial document that is issued periodically, preferably monthly, by card providers. These statements contain a list of all debit and credit transactions involving the credit card. Hence, they tend to be expansive, and also call for a check once in a while so that the cardholder remains aware of all the charges applicable to the card.
Things to check in your credit card statement
It is imperative that you know how to read your credit card statement correctly for various reasons. Usually, the credit card issuer segregates the statement into several sections. Given below are the details that you should thoroughly check:
- Primary information: Basic details like the name, postal address, and email address of the cardholder are usually mentioned at the top left corner of the statement. Accuracy of these details is imperative and in case of any discrepancies, you must immediately contact the financial institution.
- Account Summary: It is the most critical section of the document and is a brief representation of all the transactions you’ve made during the period. Be mindful of any mistake in this section as the record will directly impact your outstanding balance.
- Total dues: From a credit card statement, you’ll get a clear idea about the dues which need to be paid off for the concerned billing cycle. It also includes the minimum amount due which you need to pay to the credit card issuer to avoid any late payment fees.
- Credit limit: Whenever you make a purchase, your credit card’s predetermined credit limit reduces by the corresponding amount. So, you need to check your statements regularly to know if your credit limit is about to get exhausted and make purchases accordingly.
- Offers and rewards: Credit cards come with multiple benefits like discounts, cashback offers, and reward points. You need to read through the monthly statements to stay updated on the available benefits.
You must carefully scrutinize and understand all the charges that are imposed by the credit card company as mentioned in the statement. It is also vital to learn how to use your credit card wisely as it can help you spot fraudulent transactions or any other inaccuracy that may appear in the document.
Reasons to check your credit card’s monthly statement
Primarily, the monthly statements of a credit card help cardholders to keep track of all their expenditures made using the card. Checking the statements periodically, however, also come with the following advantages:
- They help keep monthly expenditures in check.
- You can maintain your credit utilization, ideally within 30%, by keeping an eye on the spending and planning accordingly.
- Checking your card’s statement religiously also helps abate any losses arising out of unauthorized usage of the card as it helps with a prompt intimation of such a breach.
- Cardholders can also be aware of all the rewards and cashback offers that are available to them along with the validity, to utilize them in time for increased savings.
- A credit card statement may also provide you with updates about new products and/or services introduced by the card issuer.
Limited payment options for your credit card bills can restrict the flexibility of using such cards. To avoid such issues, you can opt for cards like the Bajaj Finserv RBL Bank SuperCard that provides you with flexible payment options such as EMI conversion to pay credit card bill online or offline in easy installments.
Apart from issuing credit cards, the concerned card’s issuer also provides you with pre-approved offers, which help you to acquire loans and advances conveniently. You can check your pre-approved offer only with your name and contact details. Besides credit cards, these uniquely designed offers are applicable for other financial products as well, like personal loans, business loans, and more.
You must ensure that you read your credit card statement whenever it is sent to you by the credit card issuer. You can also access it online intermittently by logging in to your account at the issuer’s website and taking a glance at the statement records to stay updated.
