Imagine this scenario:
You come across a gym membership promotion for credit card users who sign up on a three-year contract. You jump at the chance, hoping for a leaner and meaner body at the end of the three years.
Perhaps you thought to yourself that signing up with a credit card means every month, a certain amount is billed to your credit card for three years. Since the monthly payment amounts to several hundred ringgit, you didn’t think much about it and signed up immediately.
A week later, you check my credit card statement and to your horror, the gym had billed a total of RM7,000 upfront for the payment of a three-year membership, instead of monthly billing over the course of three years!
The thought of paying interest on RM7,000 will likely leave most people breathless and sweating (without actually going to the gym). Unfortunately, once the transaction has passed through from the gym, there is very little they can do on their side except apologise. You will be left at the mercy of the issuing bank. The only option is to plead your case and jump through hoops to get the billing revised to monthly instalments.
Your statement tells you a lot more than just how much you owe
The above experience may not be as action-packed and entertaining as you were expecting, but one thing we can all learn from it is, credit card statements are extremely important.
Your monthly credit card statement tells you a lot more than just how much you owe and when to pay it by. There are ways to keep track of your expenses on the credit card statement to ensure that they are correct
Tips to track your credit card statements better:
- Save all charge receipts for the month and match them with the bill when it comes in
- Track reward points and cash back. Make sure these are noted correctly on your statement
- After paying any overdue balance the month before, check that it is reflected in the latest statement
- Noticed that you have been double billed or over-charged for something? Immediately take action and contact the credit card hotline
If you have a problem, quickly contact the credit card company by phone. It is also important to note the interest rate applied for different payments. Advance withdrawal on your credit card has a different interest rate compared to the usual credit card charges. The interest rates for purchases, balance transfers and cash withdrawals may all be different. Your statement should clearly state the fees and charges.
The next time you receive your credit card statement notification, check through it thoroughly before you delete the notice or close it.
Read More: 5 Credit Card Mistakes Almost Everyone Makes