Credit card statement: understand and see how to avoid penalties


Credit card statement is sent to a credit card user at the end of the month via courier or via email. The statement sent in each billing cycle when there is activity or outstanding balance on the account. It is a monthly summary of a credit card’s billing cycle. In case of no activity in the account, no statement is generated. You might have looked your credit card many times but these are few essential things that you should not miss.

Payment due date:

Payment due date is specified over the top corner below the statement period. It tells about the date by when you should reimburse or repay the sum on your credit card. Any payment after this date will be liable to finance credit and late payment fees.

Statement period:

It is written on the top of the statement. Statement runs over one month cycle generally. For example, if your statement period starts on April twelfth, it will end on May thirteenth. If you need to know the number of interest free days, this period must be seen. For the most part, banks offer a premium free time of up to 55 days, if you start your statement period with no outstanding amount. In any case, it is fundamental for you to realize that the interest free period is computed from the beginning of the statement date and not from the date you make your buy through the credit card. For example, in the event that you make a purchase on April twelfth, you will have 55 interest free days until sixth June, yet in the event that you make a purchase on May first, you will have 37 interest free days.

Minimum amount due:

While it is fundamental to deposit your credit card bill by the due date, sometimes you can’t do as such. In that case you should pay the minimum amount due. If you pay lesser than the minimum amount due, you have to pay the late payment fess along with finance charges.

Financial charges

Your statement additionally indicates financial charges for you. financial charges are payable at monthly percentage rate on all the transactions  when the client of the card does not pay the outstanding funds and all the cash advances till the sum is paid back.


Finally, your statement additionally records the prizes that you have earned over course of the period. This just applies to the credit card endowing program. The prizes section gives total points that are carried from previous statement and furthermore those earned in the present statement, alongside focuses disbursed, lapsed or redeemed.

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