Credit cards can be compared to a double-edged sword. Especially for today's credit dependent youth. A number of factors have contributed to the rapid expansion of credit card usage, including lifestyle changes, digital payments, financial inclusion and the appeal of rewards programs. However, this boom also brings with it a new set of problems such as fraud, debt and overspending. This emphasizes how critical it is to use credit cards wisely and be aware of the risks involved.

Factors Involved in a Credit Card Agreement

A credit card statement is an important financial document that provides a comprehensive summary of your spending habits. Key details found on a credit card statement typically include:

Transaction History: A comprehensive log of all purchases, expenses and payments.

Past Balance: The amount transferred since the previous billing period.

Payments: Total of all money paid.

New Purchases: Total amount spent on recent acquisitions.

Interest Charges: Costs associated with maintaining a balance.

Current Balance: Total amount due.

Minimum Payment Due: The minimum amount required to cover costs and avoid penalties.

Due Date: Minimum payment due date.

What to look for on your credit card statement?

Regularly reviewing your credit card statement is necessary to maintain financial stability and detect potential fraud. There are essential elements that you should check to read and review for safety reasons.

Statement Date and Billing Cycle: Identify the period for which the statement is valid.

Due date: Make sure you pay on time to avoid late penalties and a lower credit score.

Grace period: Pay off the balance in full during the grace period to maximize interest-free credit.

Transaction Details: Check all transaction details including date, amount and name of the merchant.

Total Amount Due: Identify the total amount due and your available payment choices.

Minimum Payment: Pay attention to the minimum payment amount required, but try to pay more to reduce interest costs.

Credit limit: Monitor your available credit to make sure you don't go overboard.

Cash Advances: Check any cash advances you've received, keeping in mind that they often come with high fees and interest rates.

Points for Rewards: Keep track of your points and check possible redemptions.

Foreign Transaction Fees: Check accuracy if you have made international purchases.

Interest rates: Learn how interest is calculated and make sure it matches your expectations.

Fees and charges: Check for unexpected fees, such as annual fees, late fees or over-limit fees. EMI Conversions: Make sure you understand the terms and interest rates of any converted EMIs.
EMI പരിവർത്തനങ്ങൾ: ഏതെങ്കിലും പരിവർത്തനം ചെയ്ത EMI-കളുടെ നിബന്ധനകളും പലിശ നിരക്കുകളും നിങ്ങൾ മനസ്സിലാക്കുന്നുവെന്ന് ഉറപ്പാക്കുക.

Credit Utilization: Monitor your credit utilization ratio to maintain a healthy credit score. Customer Service Messages: Review communications from the credit card company.
ഉപഭോക്തൃ സേവന സന്ദേശങ്ങൾ: ക്രെഡിറ്റ് കാർഡ് കമ്പനിയിൽ നിന്നുള്ള ആശയവിനിമയങ്ങൾ അവലോകനം ചെയ്യുക.