Every credit card holder is well aware of the credit card statement that he receives monthly. If you are someone new to the credit cards, then it must be very confusing for you to understanding the credit card statement. A responsible credit card user will not only pay his bills on time but also have a clear idea of the statement he receives. In simple words, a credit card statement is a report provided by the credit card provider, which gives a summary of the in and out transactions that happened on the card.
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Here’s a summary of what’s on your credit card billing statement,
A credit card billing statement starts with the basic details of the cardholder like
- Name of the cardholder – This gives the full name of the primary cardholder.
- Current address – The current residential address of the primary cardholder is provided.
- Statement Date – It is the date, the bill is generated i.e. if the bill is from 22 July 2019 to 21 August 2019 then the statement would be dated as 21 August 2019.
- Payment Due Date – This is the date by which the cardholder needs to make the payment(minimum amount or full amount)
- Total Outstanding Amount – This is the total amount the cardholder needs to pay the provider/bank. The total outstanding amount includes all payments i.e. EMI, balance transfer, cash advance charges, cash withdrawal charges, etc. If the cardholder pays the total outstanding amount before the due date, there won’t be any additional charges levied.
- Minimum Payment Due – Cardholders can clear the minimum payment by the due date provided in order to avoid late payment charges. The minimum amount that can be paid by the cardholder is provided under minimum payment due.
Some of the providers also add a minimum payment warning to the statement which explains the interest rates added on it.
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The basic details will be followed by the account summary which lists the
- Previous dues – If there are any previous dues on the credit card, it can be found under this column
- Current billing month purchases – This gives the total amount of purchases made in the current month using the card
- Total payable amount – The Total Payable Amount will be the sum of the previous dues(if any) and current billing cycle purchases. This is the total outstanding amount on the card.
Apart from this, the account summary will also have list down the total credit limit provided, the available credit card on the card, the total cash limit, and the available cash limit. The credit cardholder can find out his credit limit here. The available credit limit is the difference between the total credit limit and the used credit limit on the card.
The details of the credit limit may not be present in the “Account Summary” section at all the banks. It can be available in the “Basic Details” column as well.
The transaction details column consists of a detailed report of the in and out transactions on the card. This is one of the important sections the cardholder must pay attention to in the billing statement. It has the date, transaction reference number, payment information and amount. Some of the credit card providers also add the spending category of the transaction i.e entertainment, travel, etc.
The transaction details will list down the transaction made in between the billing cycle of the credit card. It also lists fees charged on any transactions, interest rate(if any),
One point to be noted here is, next to some of the transactions, there is “Cr” added. “Cr” is the amount that is paid back by you which is reduced in the total bill amount.
Credit cardholders who want to convert their regular purchases to Easy Payment Plan(EPP) can find the details in the transaction details column.
Credit cards are famously known for the rewards provided. The credit card statement provides the rewards available for you on the card. It has the total reward points available/earned, points earned during that particular billing cycle, redeemed points, expired points. With the reward details provided, the cardholder can understand the reward points he earned in the particular month and make use of the available ones.
Offers on the credit card
Some of the credit card providers also provide the offers provided on the card exclusively. This can help the cardholder check the offers available for him and avail those. This is available on the e-statements generated.
Towards the end of the billing statement, there are options provided to pay the bill i.e. through cheque, cash or online payment. It also includes the contact details of the credit card provider which can be used by the cardholder.
Also, read: How to take good advantage of a credit card
How beneficial is a credit card statement?
As mentioned, a credit card statement is an important document that contains crucial information about credit card usage by the cardholder. By checking the billing statement the cardholder can,
- Understand expenses made using the card. This might help the cardholder in budget planning where he can check his outgoing expenses and avoid the unnecessary ones
- Check the charges, interest rates added on the transactions made
- Spot any billing errors or unauthorized purchases, charges, etc. and if any errors are found can report to the bank
Credit Card Statements and Fees
The credit card billing statement is available as an e-statement and paper statement.
Paper statement – The credit card billing statement is sent through the post to the cardholder. There are charges levied for the paper statements i.e. it starts from AED 5. These charges vary from bank to bank.
E-statement – The cardholder can get the statement on their registered mail id and can also find it in their online banking account. The online statements can be viewed and downloaded if needed. There are no charges to get the e-statements. The statements sent in the email would be password protected. The primary cardholder will be given a password that can be used to authorize the e-statement.
A credit card billing statement is a vital document. The statement will be sent to the cardholder at the end of each billing cycle. He must familiarize himself with the details provided in the billing statement and ensure that all the information like transactions, charges, basic details, etc. is right without any errors. Even a small error on the charges and figures can make you end up with paying more than required. If there are any such errors found the cardholder must immediately report to the card provider and get it corrected.