What is Credit Card Statement, Outstanding Amount & Due Date?

Credit cards have long been regarded as a means of providing financial security to its owners. Banks and financial institutions offer credit to their customers in order to help them fulfil their immediate needs while also giving them the option of paying later. As crucial as they are, it is also critical to exercise caution when using credit cards. Credit cards, if not handled properly, can become one of the riskiest financial instruments, rather than one of the safest. Even when banks provide credit to their customers via credit cards, they do so with a catch. Credit card customers must refund the credit amount from the previous month after each payment cycle is completed. If a user does not pay within the specified time frame, he or she will be charged a high interest rate on the outstanding debt. Furthermore, if a person fails to do so for an extended length of time, his or her credit card may be blocked and cancelled. To avoid the disadvantages of being a credit card defaulter, it is critical to pay off all of your credit card debts on time. Now the question is, how will you be able to track your expenses and check your monthly credit card bills The answer is 'Credit Card Statement.' What is the difference between a credit card statement and a bank statement? A credit card statement is essentially a billing record that includes all of a credit card holder's purchases, payments, credit and debit transactions. These statements are sent to the user at regular intervals and are known to contain all of the necessary details. Because a credit card statement contains all of the necessary information for the cardholder, it is critical to read it carefully in order to preserve a precise record of all expenses incurred during the previous billing cycle. Important Terms to Understand Let's take a look at some of the key terms on a credit card statement and see what they signify. Payment Due Date– Every credit card holder is required to pay off their outstanding obligations within a certain time frame stipulated by the credit card company. The payment due date is the last day by which a payment can be paid without incurring any additional penalties or late fees. Minimum Amount Due– If paying the entire credit card debt at once becomes too difficult, the credit card holder can pay a portion of the total outstanding sum. The minimum due is the amount of the bill that must be paid regardless of the total amount owed. In such circumstances, the credit card holder will be required to pay additional interest on the outstanding balance, as well as waived late fees. Credit Limit– A credit card holder's credit limit refers to the maximum amount that can be spent on the card. The credit card issuer determines the credit limit based on a variety of parameters such as the credit card holder's monthly income, credit worthiness, and so on. Current Outstanding Balance– The credit card holder is obligated to pay the bank a certain amount at any given moment. The current outstanding balance refers to the entire amount of money owed. The outstanding balance is determined using the user's credit card expenses from the previous month. The credit card billing cycle is the time interval between the issue of two different bills for a specific credit card. Banks/credit card issuers choose the billing cycle, which might range from 20 to 45 days. Transaction History– As the name implies, the transaction history is a record of all transactions done by the credit card holder while using that specific credit card. The transaction history is essentially a detailed record of all transactions that can be retrieved at any time by the credit card holder. Rewards and rebates– When credit card users make purchases using their cards, they can receive reward points. Credit card members can utilise these reward points to acquire appealing presents or vouchers from the bank. How can you get a record of your credit card transactions? Credit card statements are available in both online and offline formats. Here's how to do it: Online Credit Card Statement Simply go into your internet banking account to get your online credit card statement. After logging in, you'll see the fundamental information about your credit card right in front of you, such as available credit, minimum amount due, unbilled amount, next due date, current balance, and so on. This complete statement is also available in PDF format. Offline Access to Credit Card Statements As soon as the credit card statements are issued, all banks mail them to the customer's registered postal address. However, because postal transfers are unreliable, it is recommended that you obtain your credit card statement using the internet way to ensure that you do not miss any payments and avoid late credit card payments. What is the Purpose of Obtaining a Credit Card Statement? We've been studying about what a credit card statement is and how to receive one throughout this blog. The question now becomes, why is it so crucial to monitor your credit card transaction history? The reasons listed below are your response: A credit card statement is a detailed breakdown of your monthly expenditures. These expenses will assist you figure out where you've overspent and where you can save a buck. As a result, you'll be able to properly organise your monthly budget. Users may keep track of their monthly costs from the convenience of their own homes. Credit card statements are available for free, so getting one will not damage you. Credit card statements contain additional information about your bank's new products and services. Users can keep a track of and earn from the rewards and rebates made available to them by their banks through a credit card statement What should you do if your credit card statement has errors? Here's what you should do if you discover any mistakes in your credit card transaction history: Inform the merchant or the bank immediately Keep all your credit card statements and other related documents ready to be presented

What is Credit Card Statement, Outstanding Amount & Due Date?