In today’s world, Credit cards have replaced the paper money widely and effectively all over. Since credit cards are designed such a way that make your life hassle free with easier handling and shopping. One of the Key Elements of Credit Cards is that it is provided with complementary services and features besides being just a mode / mean of payment. Credit cards are normally termed as plastic money which makes the seller / buyer both satisfied and secured. Credit cards are actually very important when one needs money in case of emergency or an unexpected happening. Additionally, it is also helpful for managing your money well.
Let us have a look at the contents / Key Elements of Credit Cards:
Credit limit: this is a limit sanctioned to your card defining your eligible amount to spend. This may include, cash advances, balance transfers, purchasing, and related fees. While you will be charged an over limit fee if you exceed your sanctioned limit at any point of time.
Balances: this is the total amount outstanding on your part as playable against the purchases you made on the card, its finance charges and fees. Hence, higher your balances mean you are leaving with lower available limits.
Here is preview of a comprehensive Credit Card Report Template that will help you to record your credit card transactions effectively,
Annual Percentage Rate (APR): this is an interest rate applicable on the outstanding periods after the grace periods. This APR varies with the nature of the transaction such as APR is high on balance transfers and cash advances while its normal on purchases.
Grace Period: this is the time frame when you are required to clear your outstanding amount on the card before. It is being charged with finance charges. Although, you might not be provided with grace period if you have carried forward earlier month /s’ balances too. While, balance transfers and cash advances do not have any grace period. Hence, where there is no chance of grace period then the APR is applied directly on the balance.
Finance Charges: this is the price / effective cost chargeable on your balance. It has been calculated taking into account, both your outstanding balance /s and the APR. There are different types / norms to calculate finance charges on your outstanding amount. Creditors might take in to account one or two billing spans, can also determine using an adjusted, average, or previous month’s balance, and may also add up the new purchases you made. The cheapest one for you is that using the average daily balance method without new purchases.
Hence, where you don’t grace period and you being charged APR directly your creditor may put in a minimum finance charge. And If your calculated finance charge is less than the minimum, you must pay the minimum.
Incentives and Rewards: some creditors in the industry provided and offers rewards and incentives to privilege the card user from using their credit cards. Such as, cash back, points to redeem, and discounts.
Credit Card Fees: Generally, Annual fee, finance charge, late fee, and over-the-limit fee are some of the most common fees.
Here is download link of above mentioned Credit Card Report Template,