Credit cards can be compared to a double-edged sword. Especially for today's youth who rely on credit. Several factors have contributed to the rapid expansion of credit card usage, including changes in lifestyle, digital payments, financial inclusion, and the attractiveness of rewards programs. However, this surge also brings a new set of problems such as fraud, debt, and excessive spending. This emphasizes how crucial it is to use credit cards wisely and be aware of the risks involved.

The elements involved in a credit card statement

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

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

Balance: The amount transferred from the previous billing period.

Payments: The total of all the money paid.

New purchases: The total amount spent on recent acquisitions.

New purchases: The total amount spent on recent acquisitions.

Current balance: The total amount that is owed.

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

Deadline: The minimum payment due date.

What do you need to check on your credit card?

It is necessary to review your credit card statement regularly to maintain financial stability and detect possible fraud. There are essential components that you need to check to read and review for security reasons.

Date of statement and billing cycle: Identify the time period in which the statement is valid.

Deadline: Make sure you pay on time to avoid late penalties and a low credit score.

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

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

Total Amount Payable: Identify the total amount owed and your available payment options.

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

Credit Limit: Keep an eye on your available credit to make sure you don't go over.

Cash Advances: Take a look at 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 for possible recoveries.

Foreign transaction fees: Check for accuracy if you've made international purchases.

Interest Rates: Learn how to calculate interest and make sure it matches your expectations.

Fees and Charges: Check for unexpected fees, such as annual fees, late fees, or over-the-limit fees.
EMI Transfers: Make sure you understand the terms and interest rates of any converted EMIs.

Credit utilization: Keep an eye on your credit utilization ratio to maintain a healthy credit score.
Customer service messages: Review communications from the credit card company.