Known for its crucial ability to provide financial freedom to people, credit cards have become one of the most sought-after financial products across the globe. Be it the spur-of-the-moment purchases or the pertinent problem of being broke by the end of the month, credit cards take care of such issues. These days, credit cards have become so popular that almost everyone can be seen owning one. Its popularity is always on the rise because of the immense convenience it provides to its cardholders while making payments. When used mindfully, credit cards can never land one in financial trouble. The trick is to keep an eye on the expenditure that is being made on the credit card. This is why a credit card statement plays a vital role.
By definition, a credit card statement is a billing document that is issued periodically and lists all the payments, purchases, credit, and debit transactions done using it or towards it. Credit card statements are long in nature because they contain a lot of information. It's important for the cardholder to go through all the information listed on the statement as it helps them in keeping a track of how they are using their credit card.
Every credit card provider in India sends their cardholder regular monthly statements explaining the transactions made on their card. Most credit cardholders do not take the time out to read these statements and understand them. However, if you have a credit card, it is very important to know how to read your credit card statement.
Your credit card statements contains very important details related to your card like the billing cycle, your total outstanding due amount, the available credit limit, and the due date. It also contains details of every transaction you made using your card with the merchant name, date, time, and the amount you spent.
Your can get your credit card monthly statement online or via post. Please check the finance charges levied on your card. The finance charges is the interest rate charged on your card for that particular billing cycle. Also, if you have any EMIs on your card, check if the right amount is debited. The other important things you should check on your statement is the available credit limit, the total bill amount, the due date, the billing period, late fees if any, and refunds.
It is quite natural for a credit cardholder to get intimidated after looking at a credit card statement because it is so exhaustive. Hence, credit card issuers break the statement into various sections and subsections. These sections list out the expenses made using the credit card and the various charges levied on the expenditure. Listed below are the various sections and subsections that are found in a typical credit card statement:
As listed above, there are several components in a credit card statement. Some of these components can be confusing. Hence, we have explained the most common yet confusing sections below:
By definition, minimum amount is the percent of the outstanding balance that is used to calculate the cardholder's minimum payment for the month. Banks in India generally charge 5% of the outstanding balance as the minimum amount due. If the cardholder converts their expenditure to EMI or if they use the EMI balance transfer option, the same calculation will be added to their minimum amount due. For instance, let us say that the cardholder has made a purchase of Rs.10,000 on July 15 and the due date is August 26, the minimum amount due will be Rs.500 (5% of the Rs.10,000).
Credit Card statement can be availed through online or offline process. Both the methods are discussed below:
Banks provide their customers with both, hard as well as soft copies of their credit card statement. To get their credit card statement online, cardholders will need to log into their netbanking account. Once they log in, they will be able to see basic information about their credit card including available credit, minimum amount due, unbilled amount, next due date, most recent balance, among others. Cardholders can download a PDF of their statement or even check it online.
In case of an offline credit card statement, the banks send it across to the cardholder to their registered postal address. However, these days banks across the country encourage cardholders to opt for online credit card statements which are mailed available through email. Cardholders can assess their credit card statement through their registered email account by using a password set by the bank.
Credit card statements are important because they help the cardholders to keep an account of their expenditure made using the credit card. It also provides information about every debit or credit transaction made towards or against the credit card, respectively.
Listed below are the benefits of credit statements sent by banks for their credit card customers:
In case the cardholders spots an expenditure on their credit card that they didn't make, they must make it a point to bring it to the attention of their bank. For instance, at times, cards get double-swiped. Listed below are ways in which the cardholder can fix an error in their credit card statement:
While most of the banks in India provide credit card statements on a weekly/monthly/yearly basis, there are some that send out daily statements as well.
Most of the banks have a set format of password for their customers to access their credit card statement through email. You need to follow the instructions listed in the mail to get your password. Once you put in your password, you will be able to access your e-statement in PDF format.
No, credit card statements, whether in hard or soft copy, can be obtained free of cost.
No. Credit card statements sent via email can be accessed any time using the right password.
No. You don’t need to register separately to get your credit card statement via email.