The benefits of a credit card come with certain financial obligations. These include controlling your credit usage, making credit card bill payments on time, and thoroughly checking your credit card statement. Thanks to technology, you can now automate all your payments, making repayment effortless. However, you shouldn’t overlook the insight you could gain from simply checking your monthly statement. Just as you would check your bill at a restaurant, a credit card statement asks for the same due diligence to avoid overpaying, report fraudulent transactions as well as plan your next bill cycle carefully.
Here are 5 important things to look for the next time you check your credit card statement.
Knowing your available is vital to knowing exactly how much you can spend in a given billing cycle. Your credit card statement will clearly mention both, your total credit limit and the amount you’ve used. Checking your statement regularly will let you know if your expenses are staying in check or if you’ve developed a new spending habit that will soon end up leading you down a road of debt. A helpful tip you can make use of is to keep your total spends under 30% of the total credit limit. This affects your total credit utilisation ratio and overusing your credit card can severely affect your credit score.
Outstanding total amount due
Checking your credit card statement for the total outstanding amount due should be one of your main priorities. A common mistake that occurs is paying just the minimum required to keep the credit card functional while accumulating massive amounts of charges against the balance. Your outstanding balance incurs interest and if you’re not careful, this amount will soon grow to a size that will spiral out of control.
Unfamiliar purchase IDs
When checking your credit card statement, always look at the purchase IDs mentioned. While you may not remember every purchase you make, you might have a general idea what the charge is about. When you do not recognise an ID, call the number listed on the statement or call your credit card company to inquire about it. Following this practise regularly will reduce the chances of fraudulent transactions. If you also tally your spends, checking each purchase will help you identify a wrongful charge or an overcharge that you can ask to be reversed at this stage.
Accumulated reward points
This may not feature on all credit card statements, but in most there is a mention of the number of rewards points you’ve earned. Look out for these points as you can redeem them in exchange for incredible offers and special deals on your next purchase. Missing out on this negates one of the most exciting benefits of owning a credit card!
Changes in interest rate
Your credit card statement is the best resource for you to check if there are any changes in the interest rate. Your credit card company generally informs you of this change when you trigger the penalty for late payments; however, if you continue to miss payment, the interest applied also changes. If you’re a first-time defaulter, and you catch the increase in time, you can approach the credit card issuer and have it waived off as some of them offer a ‘one-time waiver’.
Keeping all of these elements of your statement in check will help you avoid any unnecessary expenses and can even aid in bringing about a change in your spending habits. Another way to reduce your expenses is to opt for a credit card that offers the potential to save and doesn’t carry many charges. The Bajaj Finserv RBL Bank SuperCard is one such option which allows you to save up to Rs.55,000 annually!
The SuperCard is also well-equipped to give you the most bang for your buck because of its incredible credit card offers. These offers are in addition to the fact that you can convert any purchase over Rs.3,000 into 3 easy-to-repay EMIs. Additionally, you can also pay your SuperCard bill through the RBL MyCard smartphone application to add another layer of simplicity. To enjoy all of these benefits, simply check your pre-approved offer online to access a deal customised for you and avail instant, hassle-free approval to boost your purchasing power!