In today’s day and age, the use of credit cards has become more common than ever. Everyone owns a credit card but when it comes to the fundamentals of the credit card not everyone seems to be aware. It can seem very simple to spend money using your credit card but users also have to remember that they have to pay it back using the money they have earned with their hard work. Thus, understanding the functions of the credit card and the bill that is sent by the credit card company becomes crucial.
Here’s What Users Need to know
Credit card statements could have various tricky sections that may cause users unauthorized charges. Generally, customers have a tendency to only go through name, address, and transactions that are made and they completely ignore these unauthorized charges that might be made against their purchases.
Usually, a credit card company sends the credit card bill to its users at the end of the respective billing cycles. This bill includes the records of the transactions that are made and the accumulated amount that is to be paid. If customers do not thoroughly go through the statement, it's more than probable that they might miss very small details that could cost them more than a little money. There could be things like extra charges and late payment fines that customers don’t even realize they are paying.
The bank could charge you a late fee for a delay in payment. To keep up with the due dates it is very important to keep a check on your ‘statement date’ which holds the information on when a billing cycle starts or ends. If a customer crosses the payment due date which is mentioned as well in the bill, they might get additional charges for payment delay.
‘Billing cycle’ is also a very crucial aspect, as it aids users in keeping track of their expenditure and lets them know whether any additional money will be charged for the next month. ‘Total Amount Due’ is also mentioned in the statement which showcases the amount customers have to pay including any interests accumulated, late payment charges, additional charges, service charges, and other charges that may be applicable on various transactions.
Last but not least, users need to be updated with the ‘Minimum Amount Due’ which informs them of the minimum amount that they have to pay to keep their credit card functional and to avoid any late payment fines.
