Are you a credit card user? Here are 5 reasons why you should keep an eye on your credit card statement
New Delhi | Jagran Business Office: The credit card is a very important form of payment these days. It allows cardholders to borrow funds from a pre-approved limit to pay for their purchases. Credit cards also help build customer credit ratings. It improves the civilians of the people which is helpful in obtaining a loan. Being so important, customers have to frequently check their credit card statements.
A credit card statement is a summary of how you used your credit card for a billing period. Statements are filled with terms, numbers, and percentages that play a role in calculating your total credit card balance. To be a responsible credit card user, it is important to read all the fine print and understand the numbers and terms on the statement. If you don’t, you could end up with more credit card debt than you can handle. By doing this, they can find out how and where they used the card before paying the amount owed. In addition, according to experts, the statement helps customers maintain their credit scores.
Here is an overview of a few things cardholders should check on their card statements.
1. Transaction fees
Users should carefully check the additional transaction fees that accompany the credit card bill. Often, banks charge a fee for expenses above the prescribed limit. They can also charge interest on the unpaid amount.
2. Credit limit
The statement can help users know their available credit limit and total outstandings. The total amount includes any IMEs they need to pay as well as any charges taken in the billing cycle.
3. Balance of rewards
Cardholders must use accumulated reward points before they run out. The statement also includes new offers available on the credit card that may be of benefit to users.
4. Policy change
Any changes to the terms and conditions of the credit card contract can be tracked through the monthly statement. It helps you stay up to date.
5. Unrecognized transactions
In the age of rapid cybercrime, anyone can fall prey to phishing. By examining the transaction, the user can identify whether an unrecognized transaction has taken place or not.
Posted by: Sugandha Jha