7 Things to Check in Your Credit Card Statement

When it comes to managing your finances, reviewing your credit card statement each month is a step you can't afford to skip. 

Often, it's easy to just glance at the total owed and the due date before making a payment. 
However, this routine check can reveal a lot more about your spending patterns, potential fraud, and opportunities to save money. 

This blog explores the seven essential elements you should examine in your credit card statement. From verifying transactions to understanding fees and charges, we'll guide you through a review process that could potentially save you from headaches and financial mishaps down the line. So, grab your credit card statement and let's dive into the details.

7 things you should look for in your card statement

1. Suspicious activity: This is the most important thing to look for in your statement. Carefully review each transaction to make sure you recognise the merchant and the amount charged. If you see any charges that you don't recognise, contact your credit card issuer immediately.
    

2. Statement date: Understanding when your statement is issued is akin to obtaining the access key to your financial records. It marks the commencement of your credit card activity for the month. Additionally, if you have delayed settling your previous bill, interest will begin accruing from this date. Being aware of this can enable you to strategise your payments better and prevent unnecessary interest fees. 
    

3. Payment due date: This is the deadline for making your minimum payment to avoid late fees. Late fees can be substantial and can damage your credit score. It's important to make at least the minimum amount due by the due date to keep your account in good standing and avoid these negative consequences.
    

4. Minimum Amount Due: If you seem unable to pay the entire amount due, the card issuers allow you to pay a tiny portion to avoid the late payment cost. You might choose to pay a small amount each month instead of the entire balance owed to all credit card companies. This payment is usually little in comparison to the total amount owed to the bank because it only makes up 3% to 5% of the total amount. Therefore, if you are unable to pay the entire amount owed and do not want to fall behind on your payments, you should only make the minimal payment as a last choice.
    

5. Grace period: After the payment due date, there is a grace period that acts as an important buffer. The Reserve Bank of India (RBI) sets a three-day window for late payment charges, but credit card companies usually offer a longer period. It's important to know this timeframe to avoid late payment charges. Planning your payments within this time frame ensures a smooth and stress-free financial journey.
    

6. Credit limit availability: Your credit limit is not just a number; it's your financial boundary. Knowing how much of your limit is available can prevent unintentional overspending. Keep a close eye on your credit limit, especially if you have a significant outstanding balance. It's about understanding the limits and possibilities of your financial playground. 
    

7. Transaction Information: Each cardholder is required to review the transaction details as soon as they receive their statement. The statement is an inventory of every transaction completed during the cycle up to the payment due date. As a credit card user, you are solely accountable for thoroughly checking the transactions to ensure there are no errors.

It is imperative that you review the transaction data to identify your spending patterns and learn how to conserve money in the future.

Conclusion

In summary, regularly monitoring your credit card statement is crucial for maintaining financial health. By checking for unauthorised transactions, understanding important dates, managing payments, utilising grace periods wisely, keeping an eye on credit limits, and analysing spending patterns, you equip yourself to avoid potential fees, detect fraud early, and make smarter financial decisions. This disciplined approach helps not just keep your finances in check but also leverage credit to your advantage for a secure financial future.