What is a Credit Statement?
A Credit Statement is a document that shows details of a customerís payments and purchases that have been made by him or her using his or her credit card. This document usually provides the details of various transactions over a period of a time. Minimum period for the generation of a complete document with the information is about 30 days. This document also contains a section devoted for showing the customerís purchase over that particular period of time. This also shows the amount borrowed
by the customer.
A customer should look out for this section first in his or her Credit Statement. This way the customer can quickly detect any errors in the information that is being published in the report. The second section is the previous balance section. This provides information on the balance amount that the customer has to repay. The customer should see to it that the data in this section is accurate. Third section is the credits and payments section wherein the customer gets to know about the last payment made by him or her and other such information.
The fourth section is the cash advances
section. The customerís rate of cash advances; interest rate
, etc are obtained from this section. Sometimes a credit card company
charges more interest on cash advances as compared to that of purchases. All these details can be correctly obtained from this section of the document. The credit status information given also tells the customer about the grace period and various other extra charges imposed or any other unusual transactions that have been made. Another most important section that a Credit Statement tells is annual percentage rate
. This piece of information is important for all those customers who do not pay off their balance or debt regularly, say on a monthly basis. If the annual percentage rate is less then this suggests that the customer has to pay a lesser interest.
The next section is called as the finance charges section. This is actually the amount of fees and interest charged by the company for that particular month. A Credit Statement is not a merely a bill. It gives complete information and when ignored can cause the downfall of credit rating and credit score
. It helps the customer to monitor his finance life. The most important things that have to be monitored are credit limit. It is important that the customer is aware of the credit limit else he or she can land up in great debt. Credit Credit balance also has to be thoroughly checked and updated. Grace period details should not be ignored. This will push the customer to arrange for funds so that he or she can pay back his or her debts. Due date for payment is another important aspect that should be far from ignorance since it would be very important during the process of charging interest. Hence this document is very essential for a credit card holder and it must not be ignored.