Credit Cards have drastically changed the way we look at our finances. Time and again, they have brought premium products within our buying reach and with this, have taught us that no product is that far away. However, the mechanism that revolves around Credit Cards requires us to repay our dues on time. This brings the most Credit Card statements into the picture.
A Credit Card statement helps us keep our expenses in check. It also acts as a course correction whenever we spend more than we had planned. It provides a complete record of your credit history and has a variety of uses.
How are Credit Card Statements Helpful?
- Transparency: Credit Card statements keep things simple. You can easily identify any errors in transaction details on your statement. The same can be highlighted to your bank so that you don’t have to pay more than the actual spend on your card.
- Tax Benefits: Your credit card statement carries details regarding tax-related purchases, such as business expenses, charity donations, etc. Hence, it can function as supporting documentation for availing tax benefits.
- Better Budgeting: The visibility offered by credit card statements allows you to budget better. You can categorise and track your spends if you are looking to save money for future plans.
- Expenditure Overview: The statement gives you a macro view as well as a micro view of all the expenses, providing a complete overview of your expenses.
- Regular Reminders: The statement mentions the payment due date, which acts as a reminder to pay your bill to enjoy the zero-interest benefit.
- Credit Limit Alerts : The statement shows you your credit limit, which allows you to plan your future expenses better.
Along with these, the credit card statements also help ensure that your credit score is not impacted.
How does Your Credit Card Statement Help in Monitoring Your Credit Score?
Credit card statement mentions the payment due date at the end of a billing cycle. This date is critical as it has a significant impact on your creditworthiness. By displaying the due date, the credit card statement reminds you to pay your bills on time so that your credit score is not hampered. The credit card statement also highlights incorrect charges, which, when left unpaid, can affect your score. This can be caused by duplicate charges levied on your purchases or identity theft. By using the statement, you can highlight all such discrepancies, unauthorised transactions and suspicious activity to the issuer, so that you are not charged unnecessarily.
Credit cards let you enjoy the advantages of borrowed credit such as buying on EMI, availing a loan, withdrawing cash, enjoying rewards, improving your credit score, etc. Keeping track of your credit card statement can help you reflect on your finances and make the most of credit cards without falling into debt. To know more, download the Finserv MARKETS App.