If you wonder why the credit card statement is very important? The credit card statement is very important to restrict, plan and spend within the manageable limits of your income. Beyond a status point, the credit card has become a necessary financial tool to fulfill your day-to-day needs. Many would agree to it that we would be able to improve our savings once we maintain our monthly income and expenses list.
Why is the Credit Card Statement Important?
Credit card statement gives you a detailed knowledge on your monthly spending which is your check point on your further spending.
What is a credit card statement?
It is a detailed report on your credit card sent to you by the credit card issuer that contains reports on all your transactions, outstanding balance to be paid and the payment due date.
Credit card statement contains two things in it – one is the payment coupon and the second is transaction details.
The payment coupon has to be detached and enclosed along with the payment that you’ll be making. Transaction detail column consists the detailed report of all your transactions.
What other details the Credit Card statement contain?
Credit Card Number
The statement carried your credit card number which is 16-digit except for American Express cards which have 15-digit.
The credit limit for the card you posses will be noted in your statement. The credit limit is the ceiling within which you can do your transactions. The credit limit is decided initially based on your income (with proof) that you have submitted. Later this limit can be increased by the credit card issuer based on your transactions and repayments.
The credit card statement has the cash limit noted on it. As you can also withdraw cash from your credit card this limit given is within your credit limits. This will be usually less than your given credit limit.
The date of bill generated will be given on your statement from that date onwards the interest will be calculated if the due is not paid completely.
Payment Due Date
This is the date of payment of your bill including interest along with the late payment fee if paid beyond the payment due date.
Minimum Amount Due
One must understand the minimum amount and its purpose to keep yourself away from any further trouble of paying high later. The minimum amount due is required to keep the credit card account with good credit scoring.
If you are interested to manage your financial plan and utilize the credit card effectively, it is more important to look into the details given in the credit card statement. Many consider to have a credit card is risky and might lead you to trouble. The reality is that not everyone learns the usage of credit cards positively and not everyone goes through the monthly statements thoroughly which will help you in planning your following month’s financial plan. Now, you’ll know why the credit card statement is very important. If you can learn the credit card’s usage wisely to meet out the unexpected expenses in your daily life it can be your good friend and your financial partner.