A credit card user gets the credit card bill at the end of every billing period. Do you know your credit card bill may have errors, and if you do not spot them, you may land up paying more or unnecessarily get into a financial glitch? The question is, how to avoid errors in your credit card bill? You must check for errors before it’s too late. So, here are some important points that can help you spot the errors in your credit card bill before they impact you financially.
What to see in your credit card bill
Do you know the various points you should check on receiving the credit card bill? You can’t spot the errors without knowing the important points you should check in the credit card bill. In the credit card bill, check the address, your name, card limit, utilized limit, last payment, due date, minimum amount due, all the transactions along with the date and amount, reward points accumulated in your credit card, among others.
Check your card bill regularly
If you delay checking your credit card bill statement, there’s a high chance that you will miss out on the mistakes. Checking your credit card bills on time and regularly can help you remember the latest transactions and notice the discrepancies immediately. Sometimes the card company shows a different merchant name where you had used the card. It may happen when the merchant uses a different business and bank account name. You can resolve such matters easily by contacting your credit card customer care.
Charges levied by card company
Adhil Shetty, CEO, Bankbazaar.com, explains, “Card companies provide the details of charges they will levy on the card at the time of its issuance. They may change the charges in the future and communicate the same to the cardholders. You must stay updated about the applicable charges on your cards. If the card company levies a higher charge or a new charge on your credit card transaction mistakenly, you can immediately report the same to your card issuer and get it corrected.” However, if you are unaware of the charges that should be applied to your card, you won’t be able to recognise the errors even if they are on your credit card bill.
Know about the T&Cs
Every credit card comes with the most important terms and conditions (MITC) that apply to it. It contains information such as how to calculate interest and charges, the number of interest-free credit periods, annual fee, etc. If you don’t know about such terms and conditions, you won’t be able to spot the difference if the card company makes any big change in your card’s features. So, always verify every calculation done in your credit card bill.
Match card details with your credit report
Are details in your credit card bill reported correctly to the credit bureau? Discrepancies in the information reported to the credit bureaus can negatively impact your credit score. The card company should correctly report information such as your address, credit limit, repayment history to the credit bureaus. “You can verify the details by regularly matching the details of your card with your credit report. On finding any discrepancy, you can report the same to your card issuer and get it resolved immediately,” Shetty adds.
An error in a credit card bill can cost dear. It can lead to higher repayment than actual usage. Your credit score may be impacted negatively, and you may end up paying erroneous charges. Knowing your credit card better and reading the statement carefully can help you avoid the negative impact of the errors in your card bill.
Living on credit
- You can’t spot the errors without knowing the important points you should check in the credit card bill
- If you notice any errors, report these to your card issuer and get them resolved immediately
- Always verify every calculation done in your credit card bill to avoid paying extra
- Wrong information sent by the credit card company to the credit bureaus can negatively impact your credit score