In the previous five years, the number of credit cards in circulation has more than quadrupled to approximately 100 million, demonstrating its rapid growth.However, experts warn caution, as credit card delinquencies are also rapidly increasing.It is critical to monitor your credit card usage and statements. Regularly reviewing your credit card statement will help you identify problems, avoid fraud, and maintain a good financial profile.
What is a credit card statement?
A credit card statement is a monthly summary produced by the credit card issuer that includes all transactions performed during a certain billing period.This document is essential for managing money since it allows cardholders to understand their spending habits, track payments, and spot any anomalies or unauthorized charges.
Adhil Shetty, CEO of BankBazaar.com, shares ideas on what to look for on your credit card statement:
1. To begin, verify all of the charges and transactions stated on the statement.
2.Check for any illegal transactions or billing problems.
3. Make sure you recognize every entry in the statement and mark any unusual transactions. This might be the first step in avoiding a potential scam.
4. Make a note of the payment due date and minimum amount due. Paying at least the minimum by the due date helps you avoid late penalties and keep your credit score, so be sure you pay on time.
5. Check for international transaction fees if you've used your card overseas or made transactions in other currencies, and make sure they match your spending.
6. Banks frequently utilize the messaging section or footnotes at the end of credit card statements to communicate changes in interest rates or other critical information. Make care to go over any messages attached to your statement.
7. Keep an eye on both your credit limit and available credit. This information might assist you understand your current usage ratio.
8. Check for any convenience fees if you paid utility bills or made government payments with your credit card.
According to experts, meticulously analyzing these areas of your credit card account will allow you to retain greater control over your money, minimize excessive expenditures, and immediately detect any fraudulent activity.
