Santa Claus comes around just once a year. In the meantime, there are Credit Cards.
  • Credit Card Statement

    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.

    What is a Credit Card Statement

    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.

    How to Read Credit Card Statements

    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.

    Components of a Credit Card Statement

    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:

    1. On the top left-hand corner of the statement, details like the name, email address and residence address of the cardholder is mentioned.
    2. The following details are mentioned under the section called Statement of (Name of the Credit Card):
      • Payment Due Date
      • Total Dues
      • Minimum Amount Due
      • Credit Limit
      • Available Credit Limit
      • Available Cash Limit
    3. Account Summary
      • Opening Balance
      • Payment/Credits
      • Purchase/Debits
      • Finance Charges
      • Total Dues
    4. Past Dues (If Any)
      • Overlimit
      • 3 Months+
      • 2 Months+
      • 1 Month
      • Current Dues
      • Minimum Amount Due
    5. Domestic Transactions
      • Date
      • Transaction Description
      • Amount
    6. Rewards Points Summary
      • Opening Balance
      • Earned
      • Disbursed
      • Adjusted
      • Closing Balance
    7. Offers on Your Credit Card
    8. Important Information

    Understanding a 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:

    • Payment Due Date: If a cardholder has an outstanding balance on their credit card, they will need to make monthly payments to settle the balance. Each of these payments is required to be made within a certain date that is fixed by the credit card issuer. This date is called the payment due date.
    • Minimum due: Minimum amount due is the least amount that the cardholder has to pay to the credit card issuer to avoid a late payment fee. Generally, banks charge 5% of the total outstanding balance on the credit card as the minimum amount due. The cardholder will have to pay an interest on the remaining outstanding amount, without having to pay a late fee.
    • Credit limit: Simply put, credit limit refers to the maximum amount of credit the cardholder is allowed to borrow on a single card. Credit card issuers set a credit limit on the basis of information provided by the applicant on their credit card application. Before setting a credit limit, the banks consider several bits of information related to the applicant. Starting from the applicant's credit worthiness to their annual salary, various factors are taken into consideration.
    • Current outstanding balance: Outstanding balance on a credit card implies the total amount of money that the cardholder owes to the bank or the credit card issuer at a certain point of time. Outstanding balance is calculated beginning with the previous month's expenditure on the credit card. For instance, the outstanding balance on the monthly credit card bill is the total amount of money owed within a certain billing cycle.
    • Billing cycle: It is the period of time between the issuance of two bills of a particular credit card. For example, a billing cycle begins on the 1st day of January and ends on the 30th of the same month. Hence, the next bill will be issued on the 1st of February. The length of billing cycles can vary from 20 to 45 days. The bank or the credit card issuer determines the dates of the billing cycle.
    • Transaction history: It is the record of all the transactions, debit or credit, made towards the credit card by the cardholder. It is a detailed account that can be accessed by the cardholder any time. The bank's keep a record of the cardholder's transaction history and make it available through the facility of netbanking.
    • Rewards and rebates: While using a credit card, cardholders get the chance to gather reward points and redeem them for attractive gifts from the bank’s catalogue. Credit card statements have a dedicated corner to fill in the cardholder about the rewards and rebates that they are entitled to. This is how the banks keep the customers updated to make their shopping experience even better.

    How the Minimum Amount Due is Calculated

    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).

    Methods to Avail Credit Card Statement

    Credit Card statement can be availed through online or offline process. Both the methods are discussed below:

    Avail Credit Card Statement Online:

    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.

    Avail Credit Card Statement Offline:

    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.

    Importance of a Credit Card Statement

    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:

    • Credit card statements are free of cost.
    • Cardholders don't have to go to the bank to get the account summary of their credit card because most of the banks provide email statements also.
    • Credit card statements also offer information about new products and updates about services provided by the banks.
    • Through these statements, cardholders can keep a track of the rewards and cashback offers that they are eligible for.

    How to Manage Errors in a Credit Card Statement

    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:

    • Inform the merchant: Cardholders can talk to the merchant and inform them about the discrepancy that has been spotted in the statement. The merchant might rectify the mistake. That way, the cardholder will not need to involve the credit card issuing bank. In case this doesn't happen, the cardholder can take their complaint to the bank.
    • Keep your paperwork ready and updated: To support their claim against the erroneous transaction, the cardholder will need to keep a record of the credit card statement, receipts, and anything else that can help them prove that the transaction mentioned is incorrect.
    • Within 2 months of receiving the bill, the cardholder can send a letter outlining their objection and copies of their proof in an envelope addressed to their creditor's department for billing-related inquiries.

    FAQs on Credit Card Statement

    1. What is the frequency at which a cardholder can receive their credit card statement?
    2. 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.

    3. How do I find out my credit card statement’s password while trying to access it through my registered email?
    4. 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.

    5. Do I need to pay to get a hard copy of my credit card statement?
    6. No, credit card statements, whether in hard or soft copy, can be obtained free of cost.

    7. Do email credit card statements have a time period?
    8. No. Credit card statements sent via email can be accessed any time using the right password.

    9. Will I have to register separately for an email credit card statement?
    10. No. You don’t need to register separately to get your credit card statement via email.

    11. What information can I get from FinBooster: YesBank - BankBazaar Co-branded Credit Card?

      The FinBooster: YesBank - BankBazaar Co-branded Credit Card will give you accurate information about your monthly credit reports and also insights into how you can improve your credit score.

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