What is a credit card statement?
A credit card statement is a monthly summary provided by the credit card issuer that details all transactions made during a specific billing period. This document is crucial for managing finances, as it helps cardholders understand their spending habits, track payments, and identify any discrepancies or unauthorised charges.
Adhil Shetty, CEO, BankBazaar.com gives insights on things to check in your credit card statement:
To start with, verify all the charges and transactions listed in the statement.
Check for any unauthorised transactions or errors in billing amounts.
Make sure you recognise every entry in the statement and flag any suspicious transactions. This could be the first step in preventing a potential fraud.
Make sure to note the payment due date and the minimum amount due. Paying at least the minimum by the due date avoids late fees and helps maintain your credit score, so make sure you make your payments on time.
Check for foreign transaction fees, if you’ve used your card abroad or made purchases in foreign currencies, and make sure they’re in line with your spends.
Banks often use the messages section or footnotes at the end of the credit card statement to announce changes to the interest rates or other important updates. Make sure you read through any messages included with your statement.
Keep an eye on your credit limit and available credit. This information helps you understand your current utilisation ratio.
If you’ve used your credit card to pay utility bills or make government payments, check for any convenience fees.
Experts suggest by diligently reviewing these aspects of your credit card statement, you can maintain better control over your finances, avoid unnecessary charges, and quickly spot any fraudulent activity.
First Published: Jul 29 2024 | 2:26 PM IST
