Credit card statement is the billing statement you receive monthly from your credit card issuer. It contains all the transactions made using your credit card, and the total outstanding balance, payment date etc.Credit card companies have different looking monthly statements. Understanding your credit card statement is a simple job, but a vigilant one.

Take a look at your monthly credit card statement, and you’ll see that it contains a great deal of important information. Always check the name, billing address, card number. Then compare the charges with your sales slips

The statement contains following details.

• Current balance (the amount you owe)

• Payment due date (critical information that can vary by a few days each month)

• Minimum payment (the smallest amount you can pay to avoid late fees)

• Total credit limit

• Available credit (the difference between your total credit limit and the amount you currently owe)

If you have questions about your bill or charges you don’t recognize, call your credit card customer service number immediately and ask for an explanation. The interest rate you pay on cash advances can be higher than the interest rate you pay on purchases using your card. In addition, until you pay your bill in full, you will most likely continue to pay interest on the cash advance.

Sometime transaction can go wrong. If you have any question about transaction on your statement you have to inform your credit card provider as early as possible. Most bank have help line for this purpose, Report your dispute since there is the time limit attached to the procedure. In the letter you may need to include following things.

• Your name, address, account number, reference number (the number you will need to quote in case of dispute on any of your charges listed in that particular credit card statement.)
• Error description
• The amount of dispute
• The date when the improper amount incurred
• State the reason for dispute

The credit card statement also contains the other information like:

Credit limit

The maximum amount of credit that a bank or other lender will extend to a customer, or the maximum that a credit card company will allow a card holder to borrow on a single card.

Available credit limit

The amount of unused credit that is available to you.This is the amount you can still available l after you have made a number of transactions using the card.if you have a credit limit of Rs2 Lakh and you have made purchases worth Rs.25,000, then your current available credit limit would be the balance, Rs.175,000.

Cash limit

The maximum amount of cash that you can withdraw from your credit card account.

Statement Date

That your billing cycle ends. Interest is calculated on that date for the cycle and the statement is generated.

Total outstanding Amount Due

This includes total credit expenses and other charges charged to your account.

Reward Points Summary

There are many credit card companies which offer reward programs and attract customers. This is the record of the rewards points you have earned till date. The summary usually gives an account of your opening balance and the points or credits earned or redeemed. You should not confuse reward points with credit limit or balance outstanding. Reward points and the method of redemption vary from one credit card to another

Grace Period

The amount of time you have until your payment is considered late . Most cards have grace periods of 20-25 days.

There’s a lot of fine print included in most credit card statements. Reviewing your statement is a simple task. In fact, if you know what you’re looking for, it could be a simple task that takes less than two minutes.

Credit card is good, but only when it is absolutely necessary. An irresponsibly used credit card is a sure shot way of getting yourself into a debt trap. When you are careful and pay off the outstanding balance when it is due, a credit card is very useful.

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