Credit Card Users Beware! Check Your Bill For These Costly Mistakes
From duplicate charges to fraud and billing errors, your card statement is often the first step in flagging and correcting issues that could potentially snowball into bigger problems later.
Do you simply glance at your credit card bill every month without really checking it? This habit, though dangerous, is far more common than you may think. Credit card statements list your transaction history, incurred charges, and various other items pertaining to your credit usage, like fees, charges, etc.
So, a quick glance at the statement can often lead to small errors going unnoticed, which can hurt your credit score. From duplicate charges to fraud and billing errors, your card statement is often the first step in flagging and correcting issues that could potentially snowball into bigger problems later. Here are some common errors you should look for in your credit card bill and how to fix them.
Spot Incorrect Information
Delaying your credit card bill review can lead to missed errors. For recent transactions, it can be easier to spot incorrect amounts or unfamiliar charges. Often, merchant names too appear differently, further adding to the confusion. But, a quick check can save you future hassle. For example, you may have paid Rs 1,800 at a restaurant, but your statement shows Rs 2,800 due to a human error or a processing glitch. So, always cross-check high-value transactions. Sign up for SMS alerts or email receipts for transactions to verify transaction details quickly.
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Hidden Credit Card Charge
Unexpected charges on your credit card can add up if you’re not alert. Card issuers share fee details when issuing the card, but these may change later and tracking them is your responsibility. If you notice a higher or new charge on a transaction, flag it right away. But, if you aren’t clear on the fees applicable to your card, spotting errors becomes much trickier. Stay updated on your card’s fee structure to catch and correct mistakes before they cost you.
Look for Duplicate Transactions
System glitches can often lead to double swiping of your credit cards at merchants. The easiest way to catch this error is to match your bill amount with a physical receipt or SMS alert for said transaction. These errors may seem minor, but if they go unnoticed, especially if you already have unpaid balance, can cost you more. If you spot such an error, call your card issuer immediately and raise a dispute. Most banks will reverse the charge within 7 to 10 working days after investigation.
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Know Your Card’s Terms to Catch Billing Errors
Terms like interest rate, billing cycle, and annual fee are common credit card jargon that you must be aware of. These are mentioned on your card statement and missing them can lead to late fees or incorrect charges. Also, match your bill with the original terms. If something doesn’t add up, report it to customer care right away.
Cross Check Your Credit Card Details with Your Credit Report
Make sure the information on your credit card bill matches what’s shown in your credit report. Errors in reported data like your credit limit, payment history or even your address can pull down your credit score. Review your credit report regularly and compare it with your card statement. If you spot any mismatch, alert your card issuer right away to get it fixed.
Checking your credit card statement is a crucial part of maintaining financial hygiene. With rising digital payments and increasing frauds, staying alert is important. Treat your monthly bill like a mini-audit. Scan it, compare the charges, and flag what’s not right.
(The author is the Associate Vice President, Communications at BankBazaar.com. This article has been published as part of a special arrangement with BankBazaar)
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