Borrowing: How to Spot Errors in Credit Card Statements
A credit card user receives the credit card bill at the end of each billing period. Do you know that your credit card bill may contain errors, and if you don’t spot them, you risk paying more or finding yourself in an unnecessarily financial mess? The question is, how do you avoid errors in your credit card bill? You need to check for errors before it’s too late. So here are some important points that can help you spot errors in your credit card bill before they have a financial impact on you.
What to see on your credit card bill
Do you know the different points to check when receiving the credit card invoice? You cannot spot errors without knowing the important points that you need to check on the credit card bill. In the credit card bill, check the address, your name, card limit, limit used, last payment, due date, minimum amount due, all transactions and the date and amount, reward points accumulated on your credit card, among others.
Check your card bill regularly
If you delay verifying your credit card account statement, chances are you will miss the errors. Checking your credit card bills on time and regularly can help you remember recent transactions and notice discrepancies immediately. Sometimes the card company lists a different merchant name where you used the card. This can happen when the merchant uses a different business name and bank account. You can easily resolve these issues by contacting your credit card customer service.
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Fees charged by the card company
Adhil Shetty, CEO of Bankbazaar.com, explains: “The card companies provide details of the fees they will charge the card when it is issued. They can change the fees in the future and notify cardholders. You should be aware of the applicable charges on your cards. If the card company erroneously levies higher fees or new charges on your credit card transaction, you can immediately report this to your card issuer and have it corrected. However, if you don’t know what charges should be applied to your card, you won’t be able to recognize errors even if they appear on your credit card bill.
Know the T&Cs
Every credit card comes with the most important terms and conditions (MITC) that apply to it. It contains information such as how to calculate interest and fees, number of interest-free credit periods, annual fees, etc. If you don’t know these terms and conditions, you won’t be able to tell the difference if the card company doesn’t make any material changes to the functionality of your card. So, always check every calculation made on your credit card bill.
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Match card details with your credit file
Are your credit card statement details reported correctly to the credit bureau? Discrepancies in the information reported to the credit bureaus can negatively impact your credit score. The card company must correctly report information such as your address, your credit limit, your repayment history to the credit bureaus. “You can check the details by regularly comparing your card details with your credit file. If there is a discrepancy, you can report it to your card issuer and resolve it immediately,” adds Shetty.
An error in a credit card bill can be costly. This may result in a higher refund than actual usage. Your credit score can be negatively affected and you could end up paying the wrong fees. Knowing your credit card better and reading the statement carefully can help you avoid the negative impact of errors on your card bill.
living on credit
- You can’t spot errors without knowing the important points you need to check on the credit card bill
- If you notice any errors, report them to your card issuer and resolve them immediately
- Always check every calculation made on your credit card bill to avoid paying extra
- Incorrect information sent by the credit card company to the credit bureaus can negatively impact your credit score