An easy guide on how to read your credit card statement easily
A Credit Card is an incredible financial facility that allows you to pay for your big and small purchases “on credit”, up to a specific limit. It simply means that you do not have to pay your expenses upfront. Instead, you can swipe the card as needed and pay the Credit Card bill – partially or entirely on a fixed date each month. Most people who have newly started using credit cards often struggle with understanding how to read credit card statements. This article explains the same in detail.
Your Credit Card statement generally comprises your account details, account summary and transaction details.
This section is located at the top of your statement and comprises your name, email ID, address, partially masked Credit Card number and GST number (for Business Accounts). Besides these basic details, there is another section pertaining to your credit card statement that comprises the following critical information:
Under Account Summary, you can find the bifurcation of your Total Amount Due, which is explained as under:
Total Amount Due = Opening Balance – Payments – Credits + Cash Advances + Finance Charges.
Under this section, you can view all your date-wise Credit Card transactions of that billing cycle. You also check the amount and the merchant information.
Credit Card transactions offer reward points against transactions. You can check the number of points you have earned throughout your billing cycle.
Once you use your credit card enough, you can easily understand how to read credit card statements. A Credit Card statement is similar to a Savings Account bank statement where you can view all your transactions seamlessly. You must remember your Credit Card Payment due date or set up standing instructions with your preferred Savings Account to ensure you pay your total amount due so that you do not attract interest on your expenses.
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*Disclaimer: This article is for information purposes only. We recommend you get in touch with your income tax advisor or CA for expert advice.