Credit cards are a convenient way to make online and offline purchases. Credit cards help to build a healthy credit history, making it possible to take other forms of credit if required. To use a credit card re sponsibly, it is important to be diligent with your bill payments and understand the elements of your statement. For the same, we will walk you through the essential elements of both physical and online credit card statements.
Cardholder Information: Understanding Your Details
Your cardholder information contains your personal details. It has your name, contact information and address.
- Transaction History: Tracking Your Purchases and Payments
Reviewing your credit card statement, and keeping track of your transaction history makes it easy to pay your card bills. Your transaction history shows the spending you made throughout the entire month. It is important to check them carefully to avoid any faulty transactions. In case you notice a transaction that you did not make, you should reach out to your financial institution and inform them of the same to avoid credit card fraud.
- Credit Limit and Available Credit Limit: Knowing How Much You Can Spend
Understanding your credit limit and the available credit limit is crucial. This section will show you your overall credit limit and how much of it you have used in a particular month. Once you make your credit card bill payment, your limit becomes available again. For example, if your credit limit is Rs. 20,000 and you spend Rs. 7,000 in a month, then your available credit limit will be Rs. 13,000. Once you pay your statement balance of Rs. 7,000, your credit limit will again become Rs. 20,000. However, if you have made a purchase on EMI, your credit limit will only reflect the portion of the purchase that you have paid off. It’s important to keep an eye on your credit limit and available credit so you know how much you can spend before reaching your limit.
- Statement Balance: Calculating What You Owe
Your statement balance is essential to your credit card statement, it lets you know how much you have to pay. It includes all purchases, balance transfers, cash advances, and fees that were charged to your credit card account during that billing period. Knowing your statement balance is crucial because it helps you manage your finances and make timely payments. You can maintain a good credit score by paying your statement balance in full every month. Keeping track of your Statement Balance can also help you identify any fraudulent charges on your credit card account.
- Payment Due Date: Making Timely Payments to Avoid Late Fees
To avoid late fees and keep your credit score healthy, making timely payments before the payment due date is important. Late payments negatively impact your credit score, making it harder for you to get credit in the future. So before they add up quickly and cause financial stress, make payments timely. It is important to budget wisely and keep track of payment due dates to ensure that you make payments on time and avoid any negative consequences.
Credit cards can be helpful if you use them wisely. Whether you are a seasoned credit card user or a newcomer, knowing your Cardholder Information, Transaction History, Credit Limit, Available Credit, Statement Balance, and Payment Due Date can help you stay on top of your finances and make the most of your credit card.
