How to Read Credit Card Statements

Posted on Thursday, August 22nd, 2024 | By IndusInd Bank

Credit card users usually struggle with keeping their finances on track. An effective solution to this is to understand how to read a credit card statement (CC statement). By understanding the details in your statement, you can keep track of your spending, identify unauthorised transactions, and ensure timely payments to avoid late fees, amongst other things. 

Most importantly, knowing how to read a credit card statement will help you become financially responsible. With that in mind, here’s a guide on how to read your credit card statement and noting the worthwhile things from it. 

Key Components of Credit Card Statements

To read and interpret your CC statement in the correct fashion, one must know its various components: 

1. Account Summary

The account summary gives you an overview of your credit card account. It includes:

• Statement Period: The dates for which the statement is issued.
• Credit Limit: The maximum amount you can borrow.
• Available Credit: The amount of credit available for use.
• Previous Balance: The outstanding balance from the last statement.
• New Balance: The total amount due for the current statement period.

2. Payment Information

This section in the credit card statement outlines the payment details, including:

• Minimum Payment Due: The minimum amount you need to pay to keep your account in good standing.
• Payment Due Date: The deadline by which you must make your payment to avoid late fees.
• Total Payment Due: The full balance that needs to be paid to avoid interest charges.

3. Credit Card Transactions

This part lists all the transactions made during the credit card statement period. It includes:

• Date of Transaction: When the transaction occurred.
• Merchant Name: Where the purchase was made.
• Amount: The cost of each transaction.
• Type of Transaction: Purchase, payment, or refund.

4. Interest

This section has the details related to interest charges. It includes:

• Interest Rate: The rate applied to your outstanding balance.
• Interest Charge: The amount of interest accrued during the statement period.
• Calculation Method: How the interest is calculated? It is based on the average daily balance.

5. Rewards and Other Benefits

If your credit card offers rewards, this section will show:

• Points Earned: The number of reward points earned during the statement period.
• Total Points: The cumulative reward points available.
• Cashback: Any cashback earned during the statement period.

Once you know the various components of a credit card statement, you can note them to gain insights into your credit card habits. 

What to Note from Credit Card Statements?

Here are a few major points you should note from your credit card statements:

• Your Spending Habits

Reviewing your credit card statement helps you understand your spending patterns. By analysing your transactions, you can identify areas where you might need to reduce expenditure.

• Unauthorised Transactions

Check your statement for any unfamiliar transactions. If you know how to get your credit card statement online, you can spot such transactions at the earliest and report to your bank immediately.

• Late Fees and Damage to Credit

Late payments lead to hefty fees and damage your credit score. Note the payment due date and ensure you make at least the minimum payment on time to avoid these penalties.

• Accurate Interest Calculation

Verify that the interest charges on your statement match the interest rate and balance. Any discrepancies should be addressed with your bank.

Also Read: Credit Card Repayment- Watch Out For APR Interest

Conclusion

Knowing how to read a credit card statement and paying attention to its key components can help to stay on top of your finances and avoid common pitfalls like unauthorised transactions and late fees. 

With an IndusInd Bank Credit Card, you can enjoy seamless financial management, thanks to our detailed and easy-to-understand statements. With our never-ending rewards, transparent interest charges, exclusive privileges and benefits, or fuel and annual-fee waivers, we aim to serve our customers with only the best things.  

Apply Now for a Credit Card with IndusInd Bank today! 

Disclaimer:

The information provided in this article is generic and for informational purposes only. It is not a substitute for specific advice in your circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for making any financial decisions based on the contents and information.