How to Check the Credit Card Statement & Why is it Important?

How to Check the Credit Card Statement & Why is it Important

Credit cards gave us the freedom to spend more money when they were first introduced. We used them to purchase things and grow our economy before using a strategy known as cash-on-hand management. This allowed you to avoid debt by keeping your savings in an account with a low balance until you needed it for purchases or emergencies.

Your credit card statement will show transactions that have been made recently, outstanding payments, due dates and other info. The transaction records on your monthly statement will be absolutely accurate.

Here we will discuss the particulars of credit cards, how to understand them and why they’re important.

Terms to Understand in a Credit Card Statement

Credit Limitation

If you want to receive a credit card, the credit card issuer will be concerned about your income, credit history, and Credit limit. Only once a month you can use your credit card to spend up to your credit limit.

Payment Due Date

Within your credit limit, you can make many transactions as you like throughout the month. You must pay that amount on a specific date each month. The last date of the settlement is the payment due date.

Minimum Due Payment

If you can’t pay the amount on the deadline, you can avoid paying a penalty by paying the low percentage due. However, you will have to pay interest on the remaining balance. In most cases, the minimum due amount is 5% of the entire balance due.

Billing Cycle

A billing cycle noted in your credit card statement is the period between the two credit card bills. And it can change from 20 to 45 days. But it relies on the policy.

Present Outstanding Balance

In your current payment cycle, it’s the total amount of credit you pay to your credit card provider. Your current outstanding balance accumulates at the start of the billing cycle, and a statement is provided at the end of the pay period.

Rewards & Rebates

Credit card organizations establish various rewards and rebates for a person who owns a card. A rewards program is a way to entice customers to stay engaged. Further, awards, vouchers, rebates, refunds, discounts, and other comparable products might be offered in exchange for certain client conduct.

Transaction History

The credit card statement helps to check the transaction history of finance. You can verify your credit statements from low to the high amount credited. Further, if you have any inconsistency in your transaction, you can proceed with the complaint to the particular bank.

Importance of Credit Card Statement

Tax Advantages

If you credit your money from a credit card for charity or business purposes, at the time of submitting a credit card statement, you present it as a supporting record at the time of tax billing.

Transparency

All low to high credit statements will get recorded. So, you can check all your credit statements at any time. Here, you can check transaction details, due dates, and outstanding pay. These are the information you can obtain as a cardholder.

Due Date

Your credit card statement will remember the deadline for your payment. So, it is mandatory to pay the due bill on time to evade extra interest. Furthermore, if you pay your amount after the due date, your credit score declines.

More Reasonable Budgeting

The value of a credit card statement extends beyond just keeping track of transactions. From your card statement, you may trace down several sources of your costs. You can also keep track of any excessive expenditure.

Credit Alerts

Your credit limit is also mentioned on your credit card statement. So, this aids in the planning of future expenditures. Therefore, you risk using up your credit limit on non-essential purchases before spending on something more important to you.

Now, you would have understood the importance of a credit card statement and how you get a hold of a defective or suspicious transaction. So, pay your bills on time to increase your credit score.

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