How to read your Credit Card statement?

Your credit card statement can be a useful resource if you need information specific to your card. Typically generated at the end of your billing cycle, it contains all the transactions made during the billing period. Understanding how to read your credit card statement is important for making timely payments and using your credit card to your best advantage.

Credit card statements report dues, credit card transactions, and any other applicable charges. You can usually find the following information in a credit card statement:

Your account snapshot
 

The credit card statement provides an overview of your account for the billing period, including your previous balance at the start of the month, your debit and purchase transactions, and the credits and payments.

Payment due
 

Credit card statements generally indicate the total amount to be paid and the minimum amount due. Paying the minimum amount prevents late payment fees and keeps your credit card active as well. If you pay the minimum amount or any amount less than the total amount, you will be charged interest on the balance amount until the total amount due is cleared. On the other hand, you will not be charged interest on the amount that is outstanding after the due date if you pay the total amount due.

Due date
 

Credit card statements are generated monthly, on the statement date. The due date is usually 18- 21 days after the statement date. As a credit cardholder, you should try to pay your credit card dues on or before the due date to avoid late payment fees and interest charges.

Credit and cash limits
 

There are spending and withdrawal limits against your credit card. These limits may increase depending on your spending volume and repayment record. The available credit limit in your credit card statement would indicate the available credit limit unutilised against the credit card. All your credit card transactions, balance transfers, cash advances, etc., are deducted to arrive at this credit limit. Cash limit is also a separate item in the statement, although it is a part of the credit limit. It is the amount you can withdraw via ATM with your credit card.

Reward point details
 

You earn reward points, cashback, or airmiles with every credit card transaction, except those made in excluded categories. With IDFC FIRST Bank Credit Cards, your reward points never expire. Your credit card statement shows the opening balance of reward points, the points earned during the billing cycle, the points redeemed during the same period, and the closing balance of reward points.

Transaction summary
 

You should take a look at all credit card transactions during the billing cycle on the credit card statement. The transaction summary serves this purpose by displaying the date of credit card transactions, deductions and charges made during the period, and payments made. A brief description of the transaction is also provided under the transaction details heading.

Offers
 

There may be a section on your credit card statement that highlights the various offers and schemes you are eligible for. This section may also mention co-branded products and partnered programs.

Important information
 

The information for the knowledge and benefit of the customer is often provided on the credit card statement. It may explain how to request a duplicate statement, check credit and cash limits, balance enquiry, etc. Instructions about disputed transactions, payment modes, card safety measures, etc., are mentioned here.

Schedule of charges
 

All the charges applicable to the credit card user are usually mentioned in the card statement. This could include the annual fee, renewal fee, late payment charges, foreign currency transaction fee, rewards redemption charges, surcharges, etc. 

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.