The Buyt Desk
Many incidents have happened where credit card users had filed complaints before the Banking Ombudsman or other authorized bodies for charging unfairly against the credit card issuing companies (Bank). As a punishment, banks had to not only adjust the amount to the customers but also had to pay compensation penalties for the damage caused.
Those customers could raise their voices because they were aware and thoroughly monitored all the components present in the credit card statement bill. Don’t assume that this will not happen to you!
It might happen to anyone, and therefore, you must understand the fine print of credit card bills. Read the card statement carefully to avert getting overcharged by the bank. Here are six points you must check and read carefully in your credit card bill.
Date Of Statement – It is the date on which the bank generates the user’s card statement. This is an important date because the credit card issuing company starts levying the interest from the same date. They calculate the late fee, interest charges and every other charge from this same date.
Payment Due Date – It is the date bank gives to credit card users to pay the bill. The due date is the last date which banks give to users to pay the bill. It is better to make payment before the due date to avoid last-minute hustle-bustle. If you made the payment on the last date and due to any reason, if it does not get updated on the bank server, the bank would be liable to charge the late fee in the next bill.
Billing Cycle – The billing cycle is the period between two statement dates. Most banks keep it for 30 days. All the transactions made using the credit card within this cycle are covered in the statement. It also shows the interest, penalties and any intermediate payment made during the period.
Grace Period – Reserve Bank Of India has imposed a rule on credit card companies. Banks cannot levy late payment charges or interest if a user misses the payment for more than three days from the due date. These three days are called the grace period. Many credit card companies do not give this grace period to the customers and charge a late fee. If you see your bank has done this, you can seek clarification from the bank.
Total Amount Due – Total amount due is the amount that credit users have to pay to the bank in a billing cycle. The total due amount comprises everything, the transactions done in the last billing cycle, interest if applicable, late payment charges, and other charges. The bank gives lucrative offers to users such as annual charges waiver, service charges waiver on the spending of a particular amount, etc., with terms and conditions. But sometimes, banks add these charges in the statement even if the user has fulfilled all terms and conditions.
Minimum Amount Due – Minimum due amount is the amount that card users must pay on the due date or before to avoid the late fee.
