Credit card statement – Why it is important?

Want to apply brakes on your monthly spends, credit card state­ments of pre­vi­ous months is the best doc­u­ment avail­able which will help you to keep a check on the credit card and help you under­stand your monthly spending.

What is a credit card statement?

A credit card state­ment is a monthly state­ment sent by the credit card issuer. It lists all the descrip­tion of trans­ac­tions done using the credit card, total out­stand­ing bal­ance, pay­ment due date.

Every credit card state­ment has two parts – Pay­ment coupon and Trans­ac­tion details. Pay­ment coupon is detached and enclosed with pay­ments. The sec­ond part of credit card state­ment is where every trans­ac­tion activ­ity is listed.

Com­po­nents of a Credit card statement

Credit Card Number:

Every credit card have a unique 16-digit num­ber excep­tion is Amer­i­can Express Credit card hav­ing a 15-digit number.

Credit Limit:

It is the max­i­mum amount the credit card allows you to make pur­chase. Basi­cally it is the limit pro­vided by the credit card com­pany to its user based on the income level.

Cash limit:

Cash limit is the max­i­mum cash one can with­draw using the credit card. Cash limit is a part of credit limit and is nec­es­sar­ily lower than credit limit.

State­ment Date:

This is the date on which your bill is gen­er­ated. Credit card com­pany use this date to cal­cu­late inter­est rate, if you do not pay the full out­stand­ing amount.

Pay­ment Due Date:

This is the date before which you have to make the pay­ment on your credit card.

Amount Due:

The total unpaid accu­mu­lated amount out­stand­ing in your credit card account, includ­ing inter­est and any other charges like late pay­ment fee.

Min­i­mum Amount Due:

It is the min­i­mum amount required to be paid to keep your account in a good credit standing.

Related posts:

1. Shall I pay the min­i­mum amount due on my credit card?
2. Credit Cards – How to choose a Credit Card
3. Credit Card is not always bad
4. With­draw cash from credit card — Shall I?
5. Credit Card loan – Shall I take a loan on my Credit Card?