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A credit card may seem a futile plastic card in the first gaze but it is way more than what meets the eye. An instrument that brings with it financial freedom, the power to purchase at the spur-of-the-moment and is a savoir when one is left with little or no money. But, if not used judiciously one may find himself caught in the vicious circle of paying way more than the actual payment and may see a sharp plunge in his credit score.
Thus, a Credit card is a great servant but a worst master. That is where Credit card statements come into the picture.
Credit Card and its Importance
Credit Card statement is a periodic document that lists all the relevant information related to purchases, payments, outstanding amounts, available credit limits and other debit and credit made through the card during a particular period. Keeping track of the credit card activities is a tedious task, credit card statements helps not only in tracking the payments but also in analyzing the payments. They are free of cost.
Understanding the credit card statements may seem intimidating initially but even a basic understanding can make it a cakewalk. Let’s delve into it.
Components of Credit Card Statements
1. Name and address of the person: Name and address of the person are mentioned on the top of the credit card statement.
2. Credit Limit: Credit Limit is the maximum amount an individual is allowed to borrow from a single card. The limit is set based on information provided by the credit card applicant. Further, credit card issuers also check the creditworthiness of the applicant.
3. Minimum Payment Due: It is the amount which an individual needs to pay to the credit card issuing bank within the payment due date to avoid a late payment fee.
4. Payment Due Date: The payment due date is the date before which minimum payment due has to be paid. Otherwise, the penalty will be levied.
5. Current Outstanding Balance: It is the total amount an individual owes the credit card company. Outstanding balance is calculated with the previous month’s expenditure on the credit card along with interest as applicable.
6. Billing Cycle: It is the period between the issue of the two credit card statements.
7. Transaction History: It will involve all transaction details: Name of the merchant, the amount paid, date and time of payment.
8. Reward and Rebates: Credit card issuers also provide rewards and rebates to lure the new applicants and provide a better deal for the existing ones.
Method of Availing Credit Card Statements
1. Online credit card statements: Some banks have a dedicated portal for the credit card statements where individuals can log in and get their details while a few banks provide the credit card statements through the net banking. Banks also provide the credit card statements on mail via PDF which is password protected.
2. Offline credit card statements: Bank also provides offline credit card statements option to an individual. An individual can get the statements in hard copy to their registered address.
Errors in Credit Card Statements
While using credit cards, there might be a case of incorrect transaction or a cardholder may spot a transaction that he didn’t make. To rectify these problems, the user has an option to inform the merchant about the same and get it rectified. If the issue does not get resolved by the merchant, then the user can complain regarding the same to the Bank.
The user is required to provide the relevant documents to support his claim and the same should be submitted to the creditor’s department within two months of the date of the transaction.
1. What is the frequency at which the user can get the credit card statements?
Banks provide credit card statements monthly.
2. Will an individual need to register separately to apply for getting credit card statements on mail?
No, an Individual does not need to register separately to apply for getting credit card statements on mail.
3. How can I access my credit card statements online?
You can access your credit card statements online using the net banking facility.
4. Is there any cost involved in availing a hard copy of credit card statements?
No, banks provide it without any extra cost.
5. How do I get my credit card statements password, which is sent to me on mail?
Most of the banks follow a set format of the password. You can look for that format on your mail and can access the Credit card statements.