Does Credit Card Statement Confuse? Understand these 7 important terms
If you use a credit card, then you will have to get its statement every month. If you do not understand the statement of your card. Then this news can prove to be of your use.
1. Payment Due Date
The last date till which you can deposit your payment, additional charge or late fee is called payment due.
2. Minimum Amount Due- It is necessary to pay a minimum amount due. You will have to pay an additional interest rate on your outstanding balance, but the late fee will be waived.
3. Credit Limit- This means the maximum amount that the cardholder can spend.
4. Current Outstanding Balance The credit cardholder has to pay a certain amount to his credit card company. The total amount is called the current outstanding balance.
5. Billing Cycle The time between the generation of two bills of the credit card is called the billing cycle. The length of a billing cycle is decided by the credit card company/bank.
6. Transaction History The transaction history contains the details of every payment made by the cardholder from that card. It can be accessed by the cardholder at any time.
7. Rewards and Rebates The credit cardholder gets a chance to use the reward points for using the card. They can use it on shopping offers from the bank.