Why is Credit Card statement popular in the UK?

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. 

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