How to Read Credit Card Statement?

A credit card statement is a crucial financial document that provides a detailed record of your account activity during a specific billing cycle. You can use the statement to manage your finances effectively, avoid late payments, and maximise rewards. Read on to understand the details mentioned on your credit card statement and how the statements work.

Details Mentioned on Your Credit Card Statement

Understanding each component of your statement is crucial for effectively managing finances and avoiding any confusion. Let us discuss each of these components in detail:

1. Account Information

This section of the credit card statement contains essential information about your account, including:

• Name and Billing Address: You must ensure your address and name are accurate on the statement, as this information is sent to the major credit bureaus and can impact your credit score.
• Account Number: The statement displays your account number or its final four digits. This number is unique to your account and is used for identification purposes.
• Billing Cycle Date: Your statement includes the start and end billing cycle dates. It is important to note that all purchases made after the cycle’s closing date will not be shown on your current statement but will be reflected on the next month's bill.

2. Account Summary

The account summary provides a comprehensive overview of your account activity, including:

• Payments and Credits: Your card statement details your previous balance, if any, and your new balance, which includes new transactions, interest, and fees. It will list any payments you have made, credits applied to your account, charges for purchases, fees for services, and interest charges.
• Payment Due Date: Your due date is fixed and the same every month. Issuers provide at least 21 days to clear the monthly billing cycle payment.
• Total Amount of Overall Balance: This shows how much you must pay on your bill. Your card statement will include your current credit limit and the amount of available credit.
• Other Fees: The account summary includes late fees, limit fees, foreign transaction fees, and a balance transfer fee.

3. Purchases

The statement offers a comprehensive breakdown of your transactions, including:

• Purchase Date: The specific date on which each purchase was made.
• Vendor Category: This indicates the type of business or service the vendor provides. For example, it might say "Travel" or “Groceries."
• Vendor Name: The merchant’s name or establishment where the transaction occurred.
• Billed Amount: The amount for each transaction spent on your card. You may see two transactions for dining expenses—one section showing the tip and the other showing the bill.

4. Account Fine Print

This fine print on your statement includes:

• Contact Information: Details on contacting the financial institution by mail, phone, and online.
• Acceptable Payment Details: The payment methods the financial institution accepts, the credit bureau it reports, and dispute resolution.
• Interest Rate Details: How to calculate interest and avoid charges if you pay your balance entirely and timely.

5. Payment Information

The card statement will show payment information on the complete balance you have received, including:

• Total Credit Card Amount: Includes your total available credit amount.
• Minimum Amount Due: The minimum payment on the credit card is typically calculated as a certain percentage of the account balance or that percentage plus fees and interest. If your balance is minimal, the financial institution may charge a fixed amount or require you to pay the balance in full if what you owe is even less than the fixed amount.
• Calculation of Total Time to Pay the Due Amount: The statement includes the duration required to pay off their total balance when the minimum amount due is paid every month.
• Credit Available: The credit balance is the balance credit amount available on your account before reaching the limit. Using 30% or less of your available credit is advisable, as exceeding this threshold can negatively impact your credit score.
• Interest and Fee Paid: This shows the fees or interest you have paid so far for the current year.

6. Interest Charges

This part of your statement shows the APR (Annual Percentage Rate) for different card uses:

• Purchases: Variable APRs, based on the prime rate, may have changed since your approval. Most credit cards have variable APRs.
• Cash Advances: The APR for cash withdrawal as a cash advance.
• Balance Transfers: APR for balance transfers is usually the same as for purchases unless you have a 0% APR offer. It also shows the expiry date for balance transfer offers.

7. Rewards

The statement of a rewards includes an account summary of the billing cycle activity, typically showing:

• Rewards Balance: The total reward points you collected before the billing cycle.
• Rewards Earned: Any rewards earned during the most recent billing cycle.
• Reward Redeemed: The reward points you have used during the billing cycle.

Also Read: Personal Loan or Credit Card Loan - Which One Should You Take?

How Do Credit Card Statements Work?

The statement provides a comprehensive overview of credit card use during a specific billing cycle and offers an overview of your account status at the end of the statement period. While the exact contents may vary by issuer, it includes certain key information, such as your balance at the end of the statement period, the minimum payment required to avoid a late fee, and the due date for that payment.

Additionally, your statement includes any interest charges and the amount to be paid as interest if you only make the minimum payment and refrain from making new charges. If you have a special financing offer, such as a 0% introductory annual percentage rate on purchases or balance transfers, your statement will indicate how much longer the offer is applicable.

How to Get a Poonawalla Fincorp IndusInd Bank eLITE RuPay Credit Card Statement?

• You will receive your card statement on your registered email ID on the billing date.

Or

• You can also use the IndusMobile app to check your statement on your registered email ID.

To Conclude

While the general structure applies to most statements, specific details might vary depending on your card issuer. Regularly checking the credit card statement lets you track spending, avoid charges, and manage your finances effectively. To get the best possible benefits, apply for a Poonawalla Fincorp IndusInd Bank eLITE RuPay Credit Card now!

Frequently Asked Questions

1. Where are purchase details mentioned on credit card statements?

The ‘Purchases’ section of the statement shows the lists of your transactions with merchant names, dates, and amounts.

2. Why is it important to review your monthly credit card account statement?

Reviewing helps identify unauthorised transactions, track spending patterns, and ensure accurate billing.

3. What does minus mean on your credit card account statement?

A negative credit card balance occurs when your balance is below zero, resulting in a negative account balance.

Disclaimer

We take utmost care to provide information based on internal data and reliable sources. However, this article and associated web pages provide generic information for reference purposes only. Readers must make an informed decision by reviewing the products offered and the terms and conditions. Loan disbursal is at the sole discretion of Poonawalla Fincorp.
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