Did you know??? By February 2019, 60.65
million credit cards were issued to the UK residents.
Number of credit cards issued in the United Kingdom (UK) from January 2016 to February 2019 (in millions)
This is so obvious in the ever growing
world that tackles money in smart ways. The bunch of paper currency was removed
by smart credit and debit cards. You get the liberty to use a card anywhere
without standing in the line of banks to take out a certain amount for monthly
budget.
Also, you never go out of funds due to different
limits of credit cards. If
you use them beyond the limit, you need to pay it back in either instalments or
if you can manage all at once.
However, this and many other reasons create
the need to have an idea of your spending through credit card. This is where
you need the credit card statement.
What is credit card statement?
It is the summary of your credit card
spending activity for a certain period of time, which is usually given monthly.
Now the talk on popularity
The reasons of popularity basically reside
in the importance and impact of the credit card statements.
To
prevent the bad effect on credit scores
Your credit card statements tell you about
the overall spending. This helps to know if you are missing any repayments or
not. This helps to prevent the threat that may cause your credit score go down.
This is necessary and helpful for a safe landing on your future financial
goals. UK people can relate to bad credit scores quite easily. Especially, when
recently the Brexit chaos happened which was affecting people from a long time.
Know the due amount
This is vital to keep pace with your credit
card obligations. Not knowing this on time can affect the finances. You may
miss to notice how bad or how good you are going in transactions. It becomes
easy to plan for the expenses and decide how better you can perform in the
future.
Helps in attaining mortgage
The mortgage lenders are extremely interested
in knowing on each and every activity you do in your finances. From pennies to huge
amount of pounds, they want to know how you are in your financial behaviour.
Here credit card statement helps a lot in proving that if a person is reliable
or not.
Get an exact financial advice in case of bad credit situation
It is difficult to break the vicious circle
of bad credit situation. For that, it is necessary to go to the advisor, who
will always need the credit card statement to know where does the problem exist.
In fact, to take a loan for bad credit
you need to have it as the lender may want to take a look at it.
Know the rate the finance company is charging and compare it with other options
The statement is a complete information of
what is going on the aspect of rates. If you are satisfied with whatever is
offered then fine otherwise based on the given information you can search for
the other choices. There are countless options of the credit card companies that
can win the trust with their low rates and great offers.
You can see what charges and fees are applicable
There are several charges that are
applicable on credit card and you need to know them. Knowing about them in
advance can help you manage the expenses at the right time. Otherwise, if you
miss them, they can increase the due amount and can also make the interest rate
accumulate. It is very important to keep a watch on the charges as sometimes
companies commit some mistakes. For instance – Applying one charge twice, or
not applying any charge at the right time and then taking it later with a late
fee. This is normally unintentional, however caution is necessary as the
finance companies are getting into notice for wrong treatment of customers.
Stay aware of all the transactions
It is very important to know if all the
transactions are mentioned in the correct way or not. Sometimes credit card
companies (by mistake) mention wrong entries. This means, there can be some
transactions that didn’t happen but they are mentioned there. This can
drastically increase the due amount and then the obligation of due credit card
payments can be hugely big. For sure, this affects not only the credit score
but also your monthly budget.
The above are the reasons of popularity of
credit card statement in the disguise of its importance. Take a look at the
points above and make sure you are taking the due benefit of your credit cards
with the help of the statements. To keep a control on what you spend, you need
to have a look at your financial behaviour in totality. The credit card
statements do that easily.
Tags
finance