Only one thing click to our mind is credit cards, when we look for building our credit profile better in less time. One may easily apply for credit card nowadays either online or offline. But before you plan to purchase a credit card for yourself, the first thing you need to learn is how to read your credit card statement. Banks usually send the credit card monthly statement to the credit card users either on their registered e-mail ID or at their residential address, as requested by the user. A credit card statement contains a whole lot of information that might be confusing for a first-time credit card user.
Let us understand these sections in detail:
Payment due date is the date that is determined by your credit card issuer. Every cardholder is supposed to make the monthly payment before this due date. And you will be charged a small late fee in case you fail to pay the minimum amount due before the due date. Make sure to pay all your monthly payments within due time as not doing that will adversely affect your credit score thereby your credit history.
Account summary gives you detailed information about your spends done during the particular month. On checking your account summary, you will get to know about everything you were looking for including the transactions made by you in the billing cycle by using your credit card.
Your credit card statement period is written at the top corner end of your monthly bill statement. This statement period is important if you want to use interest-free days on your generated bill. Calculation of interest-free day starts from the first day of the credit card statement mentioned in your statement period.
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Total Cash Limit or Credit Limit
One must be aware of the total credit limit available within their credit card. The credit limit or cash limit is the maximum amount that card issuer may borrow by using their credit card. Usually, the credit limit provided to you depends upon the income profile and the payment record you have. Your credit limit automatically increases once you maintain a steady payment record.
Total Amount Due is the total outstanding amount which is due on your credit card. That means this much of amount you owe to your credit card issuer. This total outstanding due amount includes interest rate and all applicable fees.
Usually, the billing cycle varies from one credit card to another credit card. For example, if your billing cycle is 5th May to 4th June, it means that the payment due date is 4th June. On 4th June, you can either pay the entire amount or pay the minimum amount due and close your monthly bill without paying any late fee.
This is one of the most important sections of your credit card that let you know about all the important transactions you carried out during the whole month. All purchase and payments done using a credit card will be shown in this particular section. One should be very cautious while checking this section to avoid any error in the bill. Every credit card user must have knowledge about the above-mentioned points mentioned in the best credit card statement. This will help them to manage their credit card expenses properly and how do they work.
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