Credit cards provide a revolving line of credit, from which a cardholder can pay for various goods and services. So, while this sounds like good news for some, the results can often be not so pleasant. There is a risk of overspending and overshooting one’s budget. Also, defaulting on payments can result in a lower credit score.
As time goes by, and the use of paper currency decreases, there will be an increase in the use of both debit and credit cards. One of the skills everyone needs to pick up is reading their credit card statement like a pro. Knowing what’s important and what’s not in the bill helps one take stock at the end of the month when mailed with the credit statement.
How do you check credit card statements?
Usually, it is a government-mandated instruction for banks to send their customers a credit card statement at the month’s end. Also, one can check one’s credit statement online by oneself. One can make an online account and check it at one’s convenience.
What to look for when checking your credit statement?
When you are checking any credit card statement, do not just run your eye over it. There are some crucial things you should check before you eventually put the statement away.
Here is a list of items one should not miss out on in a card statement. In short, here is what one should read in a credit card.
The first thing to check is the total amount due. Total due amount is the amount spent during the billing cycle, which is usually a month long. This amount has to be cleared no matter what. Putting it off incurs a fine.
The next item to check is the due date. This date is the date before which one has to pay one’s credit card’s minimum amount. Failing to do this result in a fine. Also, one may have to pay interest on the outstanding amount.
Minimum amount due is the next thing to check. Minimum amount due refers to the minimum amount of money which should reach the bank by the due date in case one cannot clear the full amount. Defaulting on this decreases one’s credit score. This is the key factor involved in how to repay your credit card debt.
Then check the detailed credit card statement. Detailed statements show all the transactions one has undertaken on one’s credit card.
Next, check the reward point’s summary to see how many points you have gained under the rewards scheme.
Late payment warning section highlights what will happen if you do not pay within the stipulated time.
These are some of the things to check when you read your credit card statements.
How to apply for a credit card?
Applying for credit cards doesn’t have to be a tedious process. One can also apply for RBL Credit Card.
One of the many such credit cards which tick all the boxes in your choice is the Bajaj Finserv RBL Bank SuperCard. Also, you can go to the webpage of any bank of your choice and check the eligibility criteria for a credit card. Then apply for the same.
Going in for pre-approved credit cards
Should one go in for pre-approved credit cards? Before applying for any pre-approved credit card, check out the terms and conditions. Reputed financial institutions like Bajaj Finserv offer pre-approved cards to existing customers only. These offers are also available on several other financial products, including personal loans, business loans, etc. You can check your pre-approved offer by sharing only some essential details online.
The financial institutions offer a pre-approved credit card to only those people on whom it has done a soft credit check. So if you are eligible for a pre-approved card, you must already have a good credit score. Banks target these specific individuals with their pre-approved credit cards schemes.
Carefully reading your credit card statement can save you from paying a lot of unnecessary extra charges. Read the fine print minutely and check out if you have missed anything important.