Check Your Credit Card Statements Because…
As a self-proclaimed anti-exercise person, I finally got around to signing up for a gym membership five years ago. There happened to be a promotion for credit card user who sign up on a three-year contract, and I jumped at the chance, hoping for a leaner and meaner body at the end of the three years.
The idea of 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 is manageable, I didn’t think much about it and signed up immediately. A week later, I decided to check my credit card statement and to my horror, the gym had billed me a total of RM7,000 upfront for the payment of a three-year membership, instead of charging me monthly over the course of three years.
The thought of paying interest on RM7,000 left me breathless and sweating (without actually going to the gym) and I immediately called the gym to clarify. Unfortunately, the gym could not do anything about it except apologise.Then, I called the bank that issued the credit card to me and after a few stressful phone calls and some almost tearful pleas; I got the payment reinstated as monthly instalments.
Make Sure Your Expenses Amount on the Credit Card Statement are Correct
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. It is also useful to check your reward points and cash back to ensure that these are noted correctly on your statement. And if you have paid your overdue balance last month, you can check if it is reflected in the latest statement.
A smart credit trick to remember is to save all charge receipts for the month and match them with the bill when it comes in. That way if you’re double billed or being over-charged for something, you can immediately take action. 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, check through it thoroughly before shredding and disposing it.