Santa Claus comes around just once a year. In the meantime, there are Credit Cards.
  • Credit Card Bill- a Better Understanding

    Credit card bills have become a staple of most of our lives as we move towards a growing dependence on credit. Credit card bills usually contain a list of information, some of it intelligible, while the rest appears to be the result of advance computations that you will never understand.

    For most of us, the most important sections of a credit card bill are the ones that inform us of the total amount due and the date by which that amount is to be paid.

    There is a lot more to a credit card, bill, however, and knowing all the components of your bill can help ensure you don’t miss bill payments or lose out on perks that your card might offer you.

    What’s My Credit Card Bill Contain

    Besides just the amount due and the total purchases made during that period of time, a credit card bill contains a list of other information relating to your purchases and spending habits. Along with these, additional charges and fees are also a feature, and one you should be aware of, especially since these could raise the total amount you have due quite exponentially.

    The charges that are reflected in your credit card bill are as given below:

    Previous and Purchase Balances

    The biggest portion of your monthly credit card bill will consist of the previous and current purchase balances you have made over the course of your billing cycle. These charges comprise of any outstanding bills (amount left unpaid from your last bill) and your current bill charges.

    Cash Advances

    Using your credit card to withdraw money from an ATM would result in a cash advance charge, which is displayed as a ‘cash advance’ on your credit card. Such a transaction would attract interest immediately, and does not have a free-look period. Cash advances also attract higher interest rates and should be avoided unless absolutely necessary.

    Balance Transfers

    A credit card enables you to transfer your debt from one card/multiple cards to other cards. Doing this will result in the debt being added or transferred to the other card and does not cancel the debt. If you have moved debt from another card to this card, it will reflect along with the interest charges associated with it in your bill.

    Interest

    One of the most important aspects of a credit card bill, the interest due is the charge associated with taking money on credit. In other words, it can be viewed as the charges for what is essentially a loan. Failure to pay your due amount each month will result in the balance amount being carried forward to your next billing cycle, along with interest charges on that amount. Thus, your current bill will display the amount due based on your purchases charged to the card during this period as well as the interest and balance that was carried forward, if any.

    Fees

    Credit cards usually always come with a laundry list of fees, some of them more obvious than the rest. Some of the fees associated with your credit card are listed below:

    • Annual fee- this is akin to a membership fee and is levied once a year. In some cases, the fee can be broken up over bill cycles to ease the burden of paying the whole amount at once. In this case, it can be referred to as a ‘monthly fee’. Some cards waive off the annual fee if certain criteria are met, while others do not have an annual fee.
    • Transaction fee- a transaction fee is a charge levied on certain types of transactions. The most common transactions that attract a fee are balance transfers and cash advances. Using your credit card abroad can also attract fees. The fee percentage charged would depend on your credit card type and the bank.
    • Penalty fee- a penalty fee is levied on actions such as missing a credit card bill payment, using your card over your assigned credit limit or having a payment withdrawn due to insufficient funds.

    How to Pay Your Credit Card Bill

    After receiving your credit card bill, you should ideally try to pay off the entire amount before the due date to avoid attracting interest charges on your next bill. In this way, you will avoid having to pay off ever-increasing amounts due to various fees and charges being added to your bill each billing cycle. Your credit card bill will have a section titled ‘Minimum Amount Due’, which is explained below.

    Minimum Amount Due

    As the name suggests, the minimum amount due is the lowest amount possible that you have to pay to keep receiving credit from the bank. The minimum amount due is usually calculated on the basis of the below formula:

    Minimum payment= interest + 1% of total balance due

    Paying only the minimum amount due on a credit card is to be avoided as the balance amount will attract interest charges and be added to your next bill, which would make the amount payable at that point very steep. Thus, the cycle of making minimum payments would continue and you would be charged interest on a large sum of money.

    In a worst case scenario, you could be paying off credit card debt for years, with your interest rate only increasing, sinking a major portion of your income into card payments.

    Paying less than the minimum amount due is considered a missed payment, which is explained in detail below.

    What Happens If I Miss a Payment

    Missing a credit card payment will result in unpleasant consequences for the amount you will have to pay. Most banks and credit companies levy late payment charges based on the amount of time taken to clear the pending bill.

    The later the bill is cleared, the higher the charges and penalties associated with it. It is preferable to pay off a bill as soon as you receive it to prevent you forgetting to pay it, as this could end up being a costly mistake.

    Having overdue credit card bills will also have a negative impact on your credit score, making lenders wary of extending credit to you.

    How Your Bill Payments Are Applied

    If you pay any amount that is lower than your total amount due, the bill amount is distributed among the payments that need to be cleared first in your bill.

    If you have any outstanding amounts from your previous bill, the money you have paid will be put towards clearing that debt first.

    Any payments that have a higher interest rate or have fees associated with them will be cleared first as well. For example, if you have made a cash advance or a balance transfer, these transactions will be cleared first.

    If you pay off your bill in its entirety, your bank will just clear all dues instead of picking and choosing how to spread out your money towards paying the amount you owe.

    This will also prevent you from accruing interest on the money you owe and having to pay a higher amount the next bill cycle.

    Understanding your credit card bill its various components will help you make an informed decision regarding your bill payment plan as well as help you understand how the bank charges you for purchases and transactions made on your card. This will, in turn, help you cut down on interest payments and avoid card debt.  

      

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    Credit Card Bill Reviews

    • Standard Chartered Bank Credit Card
      "Average card"
      0.5 3.0/5 "Satisfactory"
      I hardly use Standard chartered bank credit card , they have not charged me annual fee as it is life time free credit card, the credit limit which they have given to me was not good they have given me up to 25,000 but it is okay as i am hardly using this card, their overall service is average.
      Was this review helpful? 1
      , pune
      Reviewed on May 22, 2019
    • Bank Bazaar Credit Card
      "Excellent service"
      0.5 4.0/5 "Great!"
      I came to know about Bank bazaar service through on line, this is my first time i have applied through them, i have been using their website it is easy to access, so far i have never faced any issue from them, they have given me best service so far their customer care had time to time done follow up with my application.
      Was this review helpful? 0
      , pune
      Reviewed on May 22, 2019
    • Citibank Credit Card
      "Excellent card"
      0.5 4.0/5 "Great!"
      I have been using CITI bank credit card for recently, they have charged me annual fee but waived off option is available like if i spend 30,000-60,000 in an year then my fee will get waived off, they use to give good reward points like if i spend 100 also they use to give me good points, they have given me welcome gift up to 3800-5000 points, the card came on time, the process was smooth.
      Was this review helpful? 0
      , pune
      Reviewed on May 22, 2019
    • ICICI Bank Credit Card
      "Excellent Service"
      0.5 5.0/5 "Blown Away!"
      I am using ICICI bank credit card for more than 4 months. I have applied directly with bank so on time i received a card. It is an annual fee chargeable.The credit limit is sufficient to use. The customer service is good. I use to get cash back based on the transactions.
      Was this review helpful? 0
      , bangalore
      Reviewed on May 22, 2019
    • HDFC Bank Credit Card
      "Need to enhance the Credit Limit"
      0.5 3.0/5 "Satisfactory"
      I am using HDFC bank credit card for more than 2 and a half years. I have applied directly with bank so on time i received a card. It is a life time free credit card. I use the card for ticket booking get discount for up to 10%. and also for amazon and flip kart i use to get 10% off. The limit is not sufficient to use.
      Was this review helpful? 0
      , bangalore
      Reviewed on May 22, 2019
    • Bank Bazaar Credit Card
      "User friendly"
      0.5 5.0/5 "Blown Away!"
      I came to know about bank bazaar through a promotional message. I am yet to use the mobile app. The customer service is responsiveness on time whenever the query raised from customer. I use to check credit score through an online and is easy to apply for a product.
      Was this review helpful? 0
      , bangalore
      Reviewed on May 22, 2019
    • Kotak Credit Card
      "Excellent Service"
      0.5 5.0/5 "Blown Away!"
      It has been a while since i am using the KOTAK PVR GOLD CREDIT CARD, the services with them has been up to the mark. There has been a good credit limit with this card and i am using the card for all sort of purchases. I am getting some few offers with this card but i have not much utilized it.
      Was this review helpful? 0
      , chennai
      Reviewed on May 22, 2019
    • Kotak Credit Card
      "Excellent Service"
      0.5 5.0/5 "Blown Away!"
      I am using the KOTAK Essentia Platinum Credit Card for a long time, the services provided by them had been good. The card has a good credit limit and it has some annual charges as well. I use the card for online shopping and for other payments as well.
      Was this review helpful? 0
      , chennai
      Reviewed on May 22, 2019
    • SBI Cards Credit Card
      "Excellent Service"
      0.5 5.0/5 "Blown Away!"
      It has been five years since i am using the SBI Credit Card and there is a good credit limit with this card. There is no annual charges with this card and i am using the card for various purchases and also for shopping. There has not been much offers which i had utilized with this card.
      Was this review helpful? 0
      , chennai
      Reviewed on May 22, 2019
    • Citibank Credit Card
      "Excellent Service"
      0.5 5.0/5 "Blown Away!"
      I am using the CITI Rewards Card for the last couple of years, i am happy with the services provided by them. The reward point system with this card is really good and i am utilizing it by shopping and by other purchases. There is no annual charges with this card as well.
      Was this review helpful? 1
      , chennai
      Reviewed on May 22, 2019
    • American Express Credit Card
      "Excellent Service"
      0.5 5.0/5 "Blown Away!"
      I am using this credit card for the last five to six years, and card is good with its reward point system. It has a good credit limit and it also has some added benefits. It does have an annual fee and i am using the card for all sort of purposes like shopping.
      Was this review helpful? 0
      , chennai
      Reviewed on May 22, 2019
    • Bank Bazaar Credit Card
      "Excellent Service"
      0.5 5.0/5 "Blown Away!"
      I am using the services of Bank Bazaar for the last two to three months where i came to know about their services while browsing in the Internet. I had been using their web portal which has been quite convenient and their customer support team had also been helpful.
      Was this review helpful? 0
      , chennai
      Reviewed on May 22, 2019
    • IndusInd Bank Credit Card
      "Excellent Service"
      0.5 5.0/5 "Blown Away!"
      I had selected the INDUSIND BANK PLATINUM CREDIT CARD since i travel a lot abroad and this card will be very much useful for me in getting some good benefits out that. The process in getting this card was very much comfortable and the card was received on the right time. I am happy with the credit limit with this card and they had explained me about the features with this card.
      Was this review helpful? 0
      , chennai
      Reviewed on May 22, 2019
    • American Express Credit Card
      "Not Satisfied with the service"
      0.5 2.0/5 "Expected more"
      The process in getting my THE AMERICAN EXPRESS® MEMBERSHIP REWARDS CREDIT CARD has not been that good where it was delayed for almost three to four weeks and during that time there has not been a proper response from their end. The credit limit with the card is very less than expected and it has some annual charges as well.
      Was this review helpful? 0
      , noida
      Reviewed on May 22, 2019
    • Bank Bazaar Credit Card
      "gOOD SERVICE"
      0.5 5.0/5 "Blown Away!"
      Applying on-line was easy, there was proper follow ups. It does not took time for processing my application and the service given by bank bazaar is appreciable. Bank Bazaar experience was Good . I had applied for a credit card and i have got that without any hurdle.
      Was this review helpful? 0
      , noida
      Reviewed on May 22, 2019
    • Bank Bazaar Credit Card
      "Best service"
      0.5 5.0/5 "Blown Away!"
      Bank Bazaar makes it easier to compare and choose various financial products online. Customer service is good they are very prompt . Website is very easy to use of bank bazaar . So far it was good experience . Mobile application also good to use . My card experience is good .
      Was this review helpful? 0
      , vadodara
      Reviewed on May 22, 2019
    • HDFC Bank Credit Card
      "Good card"
      0.5 5.0/5 "Blown Away!"
      I have HDFC BANK credit card . The credit limit is low if they provide more limit then it will be fine . The card has annual fee but they said if i do minimum transaction the fees will be waive off . I am using this card for past 1month . I have not use this card much .
      Was this review helpful? 0
      , vadodara
      Reviewed on May 22, 2019
    • Bank Bazaar Credit Card
      "Good service and response"
      0.5 4.0/5 "Great!"
      Their app is best about bankbazaar. I have installed the app in my mobile and i am using it regularly. I can able to see all the credit card information in the app. When i apply for the credit cards, i have received a very good response from bankbazaar. They respond on time to the customer
      Was this review helpful? 0
      , hyderabad
      Reviewed on May 22, 2019
    • HDFC Bank Credit Card
      "Good Card"
      0.5 4.0/5 "Great!"
      I like the offers hence i have chosen this card. They have given me a limit of Rs. 59000 and i have got the card on time with the welcome kit. I have received the card in two months. There is a annual fee of Rs. 500. I'm using the card for shopping purpose ad I'm getting offers on that.
      Was this review helpful? 0
      , hyderabad
      Reviewed on May 22, 2019
    • IndusInd Bank Credit Card
      "They need to improve mobile appliaction"
      0.5 3.0/5 "Satisfactory"
      I have INDUISND BANK credit card . I have some issue with this card , when i use this card to update balance it take 3to 4 days and when i ma calling to customer service they are not responding , the application is very slow , it take 3-4 working days to update even though i am paying the bill or purchase it take 3 days .Rate of interest is very high .
      Was this review helpful? 0
      , chennai
      Reviewed on May 22, 2019
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