Apart from detecting errors in your name, address and transactions done, you also need to track all unauthorized charges, due dates, billing errors etc. before paying the bill.
At the end of each billing period, banks send an account statement to credit card holders. The statement summarizes the usage of the card during the given period, but if you are new to credit cards, you may find it difficult to understand the details of the card. It is important for credit card users to understand the fine print of the details so that they do not get overcharged by the bank or end up with more loans. Apart from detecting errors in your name, address and transactions done, you also need to track all unauthorized charges, due dates, billing errors etc. before paying the bill.
Here are 6 things you should pay attention to:
statement date: This is when your credit card statement is generated and it is used to calculate the late payment fee. If you miss your due amount, the bank will charge interest and this interest will be calculated taking into account the date of your statement.
Payment Due Date: If you want to avoid any unnecessary interest charges, keep in mind the ‘due date of payment’. This is the date your bank expects to receive payment on the billed amount without any additional charges. A credit card user is advised to avoid postponing the payment as there may be gaps in the date and time of payment and the lender receiving the payment.
billing cycle: This time is basically the period between two consecutive statement dates, which is usually 30 days. Billing cycle is the time period for which the statement is generated. All transactions done using the credit card during the billing period will be reflected in the statement. If any interest penalty or late payment charges are levied, the same will also be reflected in the statement. Any amount received for payment of bills or any return on unsuccessful transactions will also be featured.
for the time being As per RBI rules, banks may levy late payment charges on the card for non-payment of dues for more than 3 days from the payment due date. If the payment is not made within the grace period, the bank is free to levy interest and the payment will be calculated from the due date.
Total outstanding amount: It represents the total amount payable over the billing cycle period. In addition to the transactions done in the previous billing cycle, the total amount payable will also include applicable interest or any late payment charges, annual fees, service charges and other transaction charges.
Minimum Amount Due: This is the minimum amount that the credit card holder has to pay on his bill by the payment due date. This amount is paid to avoid late fees, which are a percentage of the outstanding amount (usually 5 per cent) to be paid.
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