In today’s time, everyone owns a credit card but not every individual understands the nitty-gritty of the entire process. Spending money through a credit card is easy, but at the end of the day you pay it back with your hard-earned money. One needs to be careful while checking the bill received from the credit card company.
An individual generally checks their name, address and transactions made but what we don’t go through are unauthorised charges made by the credit card against your purchase.
Every credit cardholder receives a bill at the end of their billing cycle that holds information on their monthly transactions and the total amount to be paid. Now, understanding and going through the bill is important otherwise you might miss something really small that could burn a hole in your pocket without even realising with those extra charges, a late payment fine, etc.
Here are the things you need to know about a credit card bill:
The statement date is really important because it tells you when your cycle begins and ends. if by any chance, you miss ou ton a payment or miss it by a day, the bank charges you a late fee.
Payment Due Date
Always keep a track of your payment due date because if you miss this then you might have to pay additional charges for late payment.
The billing cycle is important because it helps you know when you can spend and if a certain payment will be added to the next credit card bill since this cycle is over. The billing cycle is generally 30 days.
Total Amount Due
This amount will include the previous billing cycle, the total amount due will also include interest applicable or any late payment charges, annual charges, service charges, and other transactional fees.
Minimum Amount Due
This is the minimum amount an individual needs to pay on their bill just to keep the credit card active and to avoid being charged a late fee.