9 things you should check in your credit card statement regularly

Have you recently started using a credit card? If yes, here is a low-down on all the key pointers you should check thoroughly as and when you receive your first credit card statement. Before we delve into the nitty-gritties of the same, here is a brief about the credit card statement.

A credit card statement gives you a complete overview of your overall card usage, aiding in better financial management. The statement carries all transactions that you might have undertaken using your card during a particular period.

You need to review this statement periodically to verify transactions for fraud, to take note of the reward points, etc. Also, a quick review of the statement on a regular basis enables you to understand any changing trend in your spending. Furthermore, a close observation of the same could enable you to avoid unnecessary interest and penalty charges.

1)Billing cycle or statement period: If your credit card statement is generated on every second day of a month, your billing cycle starts from the third of the previous month to the second of the ongoing month. Typically, it is the time between two statements i.e. 30 days and if you use the same efficiently, you will be able to secure 30 days of free credit.

2)Billing date: It is the statement date on which your credit card bill is generated by your card provider. Usually, it appears at the top of the credit card statement.

3)Payment due date: You should check and take note of the payment due date, as it is crucial to pay the minimum amount due against the credit card by this date. This is because if you fail to pay even the minimum amount due by this date, your credit score will be impacted negatively.

4)Account summary: This is a summary specifying the total debits and credits against your credit card. By analysing the same, you can figure out the total amount spent, amount due (including past dues, if any), and the amount you might have paid to your credit card issuer.

5)Minimum amount due: It is the minimum amount due calculated against your credit card spending for a particular period. The amount needs to be cleared by the payment due date. Nevertheless, one should not make it a habit to just pay off the minimum amount due or else he will be in a debt trap. This is because your credit card issuer will continue to charge interest on the balance amount.

6)Total amount due: You should also check the total amount due, which is the amount due for payment as on the statement date. The same includes your opening balance, new expenses incurred, fees and finance charges, if any, minus any credits, plus your last payment. To avoid interest and penalty charges, you should always try to clear the total amount due by the payment due date.

7)Grace period: This is the time given to the credit card holder beyond the close of the billing cycle to clear the pending dues. The same differs across credit card companies, hence you need to clarify the grace period offered by your credit card provider.

8)Applicable limits and other information: You should also check for the pre-determined spending limit that your institution has offered to you based on your income stream, repayment record, etc.

9)Reward points and other offers: Additionally, the statement also mentions the reward points you have earned, together with their expiry date. Typically, credit card providers as part of the loyalty programme reward their cardholders, which can be redeemed for discounts or other deals. In addition, the statement also bears the latest offers that are available on your credit card.

In conclusion, as an important regular exercise, you should do a quick review of your credit card statement to validate transaction details, avoid penalties, and uncover any unauthorised fraudulent charges. Typically, a diligent and quick check on the same will go a long way in helping you manage your finances efficiently.