9 Crucial Headings to Check in Your Credit Card Statement

Don't keep paying your credit card bills blindly every month. Most people open their card statements only to know about the due payment. Read this article and know the 9 headings in the statement of your credit card, which you must cross-check.

Do you read your credit card statement in detail, or do you just glance at the due amount and keep it aside? Unfortunately, most people open their card statements only to know about the due payment. Don't make that mistake. Your credit card statement tells you a lot about your spending habits. You can catch your over the limit expenses by analysing them. If you know the right columns, your card statement can also help you maintain a healthy credit score.

Here is a list of 9 headings in the statement of your credit card, which you must cross-check:-

1. Account Summary

It is the most important head of your statement which contains the following:
  • Opening balance
  • Closing date of the statement
  • The expense from the card in the current cycle
  • Advance payments (if any)
  • Credit card balance
  • Interest and fees charged

You can check and report if any of your past payments are still reflecting on your current statements.

2. Payment Due Date

If you pay your credit card bill before or on the payment due date, you don't need to pay any extra interest or fees. Thus you should settle your bill before the due date to avoid any lag or late payment charges. Also, not paying your bills before the due date badly affect your credit score.

3. Minimum Due Amount

This is not your actual due amount. But this is the minimum payment which you need to make to avoid the late fee. Usually, this amount is around 5% of your total due. Remember, the interest on the rest of the amount will keep accumulating until you pay it in full.

4. Grace Period

You will be happy to know that there is a grace period after the due date for credit card companies to charge late fees. Interest also start occurring when the grace period ends. These grace periods are usually of 3 days. However, some companies are more generous with it.

5. Credit Limit

It is the limit imposed by the banks and financial institutes on your credit card. You can't spend beyond this limit. It is usually less for first-time card users and gradually increases. Your credit score is also sometimes looked upon by banks to decide your credit limit.

6. Billing cycle

It is a monthly cycle usually. It can be of 28 days in some banks and financial companies. It is the cycle for which your bill is generated. Your credit limit gets starts with every billing cycle. Thus you should know the date of your billing cycle to plan your expenses.

7. Transaction Details

It's crucial to check your transaction details carefully every time you receive your credit card statement. It provides an insight into your spending habits. And your transaction details also disclose the date, time, and type of transactions. In this way, you can get alarmed if any dubious payments are being made from your account.

8. Reward Points

Now here comes a delight for credit card users! You get reward points from the banks if you purchase anything using your credit card. These credit points can be used to buy anything online or offline. You must check your statement for the mention of credit points to plan your next purchase.

9. APR (Annual Percentage Rate)

It is the most underrated but one of the most crucial heads of your credit card statement. APR (Annual Percentage Rate) is the total interest and the late fee paid by you annually. A low APR means you are making payments regularly and paying less in interest and fees. It might keep fluctuating according to the regularity of your payments.

Key Take Away!

Don't keep paying your credit card bills blindly every month. Check all these columns in your credit card statement to be mindful of your spending. Moreover, managing your credit card bills wisely also lift your CIBIL score for free without paying anything extra or making any extra efforts.


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