Credit cards are known for being convenient. They come with a host of features and facilities. A credit card statement is issued every month to help you understand the break-up of your expenses. The statement is a comprehensive summary of your monthly transactions.
The credit card statement highlights every detail. Most of the times, the only important aspect considered is the amount due. Nonetheless, there are various other components to the credit card statement.
Here are the components that make up a credit card statement:
1. Basic Information:
It has your name, credit card number, residential address, type of credit card, and the nature of payment.
2. Statement Period:
This is the period from statement generation to the payment due. It reports the number of eligible interest-free days.
In every billing cycle of your credit card; time is allocated with no chargeable interest.
3. Due Date for Payment:
It is essential to clear the minimum payment within the stipulated due date. You are free to settle the outstanding amount before the due date. However, if you carry out the payment after this date, your bank may levy a late payment fine and interest accordingly. Depending on your due date, you should manage your payment.
4. Minimum Amount Due:
It is the minimum amount payable by you every month. It varies depending on your monthly credit card purchases. The minimum amount is a percentage of the total outstanding amount. The percentage varies from bank to bank. It is vital to pay this amount. An amount paid less than this could result in fines. It is advisable that you make a payment exceeding the minimum amount.
5. Total Due Amount:
An aggregate amount of the minimum amount due for that billing cycle, plus, any outstanding amount brought forward from the previous bill, applicable interest, late payment fees, and any pertinent supplementary charges or fines make up the total due amount. Paying the full due amount every month will prevent additional charges.
6. Transaction Particulars:
This component of the statement holds all your monthly transactions. It highlights the transaction date, amount and particulars during the billing cycle. It also highlights any cash advances and interest or fines payable.
7. Reward Points:
With every credit card comes reward points. On each spend with your card, you earn reward points. These points accumulate every month. The statement features a summary of the reward points. It is inclusive of the points at the commencement of the cycle and the points accrued during the billing cycle. It also indicates the number of points redeemed.
8. Availability of Credit Limit:
Every credit card has a stipulated limit. The available credit limit is a component of your statement. One must ensure to carry out transactions only up to the credit limit.
9. Availability of Cash Limit:
The statement underlines the monthly cash limit. Your credit card permits you to withdraw funds through an ATM. However, there is a specific limit for the withdrawal. It is a percentage of the total credit limit. Nonetheless, a cash withdrawal with your credit card will attract high charges and interest rates.
10. Statutory Information:
The most crucial component of the statement are the terms and conditions. They provide the minutest details regarding any update or rate changes.
Your statement highlights essential aspects that play a vital role in the settlement of your payment.
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