After researching online and comparing various credit card features to finalise one credit card, you must carry out its repayment in a systematic manner to avoid accumulating a large credit card debt. This article enlists six details that you must check in your credit card bill that is generated every month.  

• Check the annual fee or APR

Credit cards generally charge an annualised interest from the borrower in case they fail to pay their outstanding dues during a billing cycle. This fee is called the Annual Percentage Rate (APR). Some of the best credit cards are no annual fee credit cards like IDFC FIRST Bank’s Classic Select credit card. These cards charge no annual fee from the customer. If your credit card bill includes an annual fee, you must check its value before making a payment.

• Verify your credit limit

It helps to be aware of the total credit line afforded to you by the bank in question. Your credit limit, which is determined by your income, credit score, and repayment history, is mentioned in your credit card bill and you must be conscious of this limit at all times to avoid credit card debt.

• Be aware of the billing cycle

A credit card billing cycle is the period between two generated credit card bill statements. Banks generally have a 30-day-long billing cycle. You must, however, be aware of the details of your billing cycle while contributing towards the repayment of your credit card dues since it is the outline of your repayment plan.

• Make note of the due date

A burgeoning credit card debt traces its origins to the borrower’s forgetfulness concerning the credit card due date. You must be very conscious of the due date – on or before which you must pay your credit card’s dues – of your credit card and if possible, set a reminder on your phone to be able to pay your dues on time.

• Check the fees charged by the bank

Your credit card bill also contains a split-up of all the fees and charges charged by the bank based on your credit card usage. You must closely analyse these charges and contact the bank in case you have any doubts.

• Know the value of your EMIs

Even if a monthly EMI (Equated Monthly Instalment) gets automatically deducted from your bank account, you must be aware of the value of your EMIs to ensure a smooth and seamless credit card repayment schedule. You can know the value of your credit card EMIs even before applying for a credit card by using a credit card EMI calculator like the one offered by IDFC FIRST Bank. This can help you plan for the repayment of your credit card dues in advance and help you be aware of your repayment schedule.

Spotting these details in your credit card bill will help you avoid accumulating credit card debt and in the case of credit cards that charge an annual fee, doing so will help you avoid penalties for late payment.