A credit card statement provides a summary of your monthly credit card transactions. It's generated at the end of each billing cycle to inform you about the total amount due on your credit card account. Let's understanding your credit card statement in detail.
A credit card statement is an important financial document that contains essential details about an individual’s credit card usage. It's issued monthly and includes information about all payments made using the card, as well as any credited amounts. Credit card statements can be lengthy because they list every transaction made with the card. It's crucial to carefully review all the information in the statement to keep track of how you're using your credit card.
You can obtain your credit card statement through both online and offline methods:
Online: Card issuers typically send credit card statements to your registered email address on the same date every month, known as the billing date. You can also access your credit card statement online by logging into your bank's net banking portal. Additionally, card issuers often send SMS notifications to customers regarding the total amount due and the minimum amount due on their credit card.
Offline: In this case, the credit card statement is physically mailed to the customer's residence by the bank. You can request a physical copy of the statement from the bank by contacting the customer care department or by visiting the nearest branch.
For first-time users, understanding a credit card statement can be challenging due to its detailed nature. To make it easier to understand, credit card companies divide the statement into various sections and sub-sections. Here are the details typically found in a credit card statement:
A credit card statement contains various terms, each representing a different concept. Let's go over some of the main parts of a credit card statement:
Transaction History: A transaction history is a detailed record of all transactions, whether debit or credit, made using a credit card. It provides a comprehensive overview of the cardholder's spending activity and can be accessed at any time. Banks maintain this record for cardholders and make it available through online banking facilities.
Rewards and Offers: When using a credit card, you have the chance to earn reward points that you can exchange for attractive gifts from the bank's rewards catalogue. Credit card statements typically include a section informing cardholders about the available rewards they can redeem. This is a common way for banks to keep customers informed and enhance their shopping experience by making it more rewarding.
Minimum Due: The minimum amount due is the lowest payment you need to make to the credit card company if you can't pay the total outstanding amount. It's required to avoid a late payment fee that the issuer might charge. Typically, the minimum amount due is around 5% of the total outstanding balance.
Credit Limit: In simple terms, a credit limit is the maximum amount you can borrow on your credit card. Credit card companies determine this limit based on the information you provide when you apply for the card. When you make purchases, your available credit decreases by that amount. As you make payments, your available credit increases again.
Payment Due Date: If you have an outstanding balance on your credit card, you'll need to make monthly payments to settle it. These payments must be made by a specific due date, set in advance by the credit card company.
Current Outstanding Balance: The outstanding balance on a card is the total amount you owe on your credit card at a specific time. It's calculated for the last billing cycle, which is the period after the last bill was generated. This balance includes active loan EMIs, revolving credit (any outstanding amount from previous billing cycles), as well as any accrued interest and associated taxes.
Billing Cycle: The billing cycle is the time between two billing dates of your credit card. For instance, if your previous bill was generated on April 1st, 2018, and the next bill was generated on May 1st, 2018, the period between these two dates is your billing cycle. The bank sets the dates for the billing cycle when you receive the credit card. However, you can request a change to your billing cycle by contacting your bank's credit card customer support department or by writing to the bank.
To access your credit card statement securely, most credit card issuers set a password format. This is to ensure the safety and confidentiality of your information. You'll receive instructions in the email on how to access the password-protected statement. The password might be a combination of your name, date of birth, PAN card number, etc. Once you enter the correct password, you can view your credit card e-statement in PDF format.
You can download your credit card statement by logging into the card issuer’s online banking website. Also, when you receive the statement in your email, you can save it as a PDF file on your computer or phone.
If you notice any errors in your credit card statement, you can report them to your card issuer by contacting their customer care number. If the error is valid, the issuer will rectify it, either by updating the statement amount or adjusting the amount in the next statement.
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