What Is A Credit Card Statement And Which Details Does It Contain?

If you are a credit card holder, you must be aware of credit card statements generated monthly and contain the details of your credit card transactions. This article enlists and explains the significance of a credit card statement in helping you repay your credit card dues timely. 

What is a credit card statement? 

 A credit card statement contains all the details of transactions, including the expenditures made using it and the credit card bills cleared. Consulting your credit card statement can help you track your expenses and spending habits, its repayment procedure, and the repayment stage.

Here are the details that you will find in every credit card statement sent to you at the end of a “billing cycle”: 

1. Your credit card’s due date

The payment due date is among the crucial information in your credit card statement. It is the date on or before which you must pay your bill. Failing to pay your bills by the due date can attract penalties.

The penalty is decided based on an interest rate called the annual percentage rate calculated on the daily outstanding balance. It is beneficial to opt for a lifetime free credit card, such as the IDFC FIRST Bank Classic Credit Card, which does not charge an annual fee and has a minimum APR starting at just 9% per annum. 

2. The minimum amount due 

Besides the total amount due, the credit card statement also contains the minimum amount due. This amount is generally lower than the total amount due and is around 3 to 5% of the total outstanding amount (total amount due). If you cannot pay the amount in full by the due date, you must pay at least the minimum amount due to avoid defaulting on your payments and attracting penalties. 

3. Credit limit 

The total credit line available to you also reflects in the credit card statement under “credit limit”. There are generally three categories of credit limit mentioned in your credit card statement – the total credit limit on your card, the credit limit currently available on your card, and the cash limit available. 

4. Reward points balance 

Reward point balance is another crucial detail featured in your credit card statement. On swiping your credit card or using it to make a payment online, you earn reward points that you can later redeem in return for vouchers or additional discounts on products. 

5. Transaction-related details 

Your credit card statement also contains details related to all the credit card-based transactions carried out by you in the previous month. It includes the transaction value, the merchant details, your total expenses made through the credit card in that month, and more 

6. Total outstanding amount 

Credit card statements also contain the total outstanding amount. It is the total balance amount you must repay to clear your credit card dues. You must check your due amount whenever you receive a credit card statement. 

Be sure to track these details when you check your credit card statements to be better aware of your credit card repayment procedure.

You must also use a credit card EMI calculator before applying for the credit card to know your Equated Monthly Instalments (EMIs) in advance and plan better finances to avoid any financial burdens.

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