A credit card statement is a vital financial document that provides crucial information about an individual’s credit card. It is issued once a month and provides details of all the different payments made using the card as well as any amount credited into it. Credit card statements are lengthy in nature because they include information on every single transaction that you have made. It is necessary to check all the information listed in the statement as it helps in keeping track of how you are making use of your credit card.
What are the different Components of a Credit Card Statement?
For a first-time user, a credit card statement can be difficult to understand as it is usually very exhaustive. Thus, credit card companies divide the statement into various sections and sub-sections for better understanding. Here, we are listing the various details that can be found in a credit card statement:
- Card holder’s details such as the name, email address and residence address of the cardholder are stated.
- Account Summary such as the opening balance, finance charges, total dues, payments made, purchases and more.
- Past Dues including over-limit charges, one-month dues, current dues and the minimum amount due.
- Domestic Transactions including the date, description of the transaction and the amount.
- Reward Points summary which includes opening balance, adjusted balance and closing balance of reward points on the credit card.
- Offers on the Credit Card tailored for the customer.
- Important Information regarding the terms of the bank.
What do the different terms in a credit card statement mean?
There are several terms that are used in a credit card statement, each of which signifies a different concept. Let us discuss some of the major components of a credit card statement:
Payment Due Date: In case you have accrued an outstanding balance, you will be required to make per month payments in order to settle the outstanding balance on the card. Every payment in this regard is required to be settled within a certain due date which is decided by the credit card company in advance.
Minimum Due: It is the lowest amount which you are required to pay to the credit card company in case you cannot manage to pay the total outstanding amount. This has to be paid in order to avoid a late payment fee which may be charged by the issuer. The minimum amount due is usually 5% of the total outstanding balance.
Credit Limit: Stated simply, a credit limit means the amount you can borrow on your credit card. Credit card companies set a pre-determined credit limit on the basis of crucial information provided to them at the time of credit card application. When you make purchases, your credit limit is reduced by that amount and on making consecutive payments, credit limit will be increased.
Billing Cycle: Billing cycle is the period between two billing dates of your credit card. For example, if your previous bill was generated on 1st April 2018 and the next bill was generated on 1st May 2018, the period between these two dates will be your billing cycle. The bank decides the dates for the billing cycle, usually when you get the credit card. However, you can get your billing cycle changed as per your convenience by writing to your bank or calling the credit card customer support department of your bank.
Current Outstanding Balance: The outstanding balance on a card is the total amount which you are liable to pay to the bank at a given point of time. An outstanding balance is calculated for the last billing cycle (the period after the last bill generation). It also includes active loan EMIs, revolving credit (any outstanding amount from last billing cycles), interest and taxes thereof.
Transaction History: It is a comprehensive record of all the transaction which could be debit or credit in nature. It is a detailed account which can be accessed at any time. The bank maintains a record of the transaction history of the cardholders and makes it available through net banking facility.
Rewards and Offers: When making use of a credit card, you also get the opportunity to accumulate reward points and exchange them for alluring gifts from the bank’s rewards catalogue. Credit card statements usually have a section to inform the cardholder about the ongoing rewards that they can redeem. This is the most common way how the banks keep the customers informed to make their shopping experience even better and rewarding.
How to Get Your Credit Card Statement?
A customer can avail a credit card statement both online and offline.
- Online: Banks usually send credit card statement to the registered email ID of the card holder on the same date every month, which is known as the billing date. Another way to access your credit card statement online is by logging into your bank’s net banking portal. Your current credit card statement will be available there. Banks also send an SMS informing the customers about the total amount due and the minimum amount due on their credit card.
- Offline: In this case, the credit card statement is sent to the customer at his residence by the bank. You can request a physical copy of the statement from the bank by calling the customer care department or by visiting the nearest branch.