By OneCard | February 26, 2024
The world of credit cards can be filled with terms and concepts that may seem puzzling. Among them, the “unbilled amount” holds much significance. In this blog, we will learn more about the unbilled amount in credit cards and its impact on your credit card statement.
Table of contents:
Credit card transactions are broadly divided into two types: billed and unbilled.
Simply put, the unbilled amount on a credit card is the total value of all the transactions you’ve made after your last billing cycle and before the beginning of the next one. These transactions have not yet appeared in your credit card bill, hence the term “unbilled.”
Let’s take a scenario. Suppose person A recently cleared their last month bill but notices that they have a sizable unbilled amount on their credit card. They may want to control their spending in the next few days as this unbilled amount will be added to their next bill, which could increase their dues significantly.
Here’s a step-by-step approach:
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There are some important implications of the unbilled amount that you need to keep in mind.
Despite the importance of the unbilled amount, some everyday things could be improved about it.
Here’s what is an unbilled transaction on credit card and how it works:
Misconception: Unbilled amount attracts interest.
Fact: Unbilled amount does not attract any interest. It will only attract interest once it becomes part of the billed amount and if not paid by the due date.
Misconception: Unbilled amount is not included in the credit limit.
Fact: Unbilled amount is indeed included in the credit limit and will reduce the credit available to you.
Managing your unbilled amount effectively can help you maintain better control over your finances.
Here are some tips:
Despite your best efforts to track and manage your transactions, there might be instances when you notice an inconsistency in your unbilled amount.
It could be higher or lower than what you expected, raising questions about the accuracy of the entries made by your card issuer . In such cases, it’s crucial to resolve the issue proactively.
Here’s a detailed guide on how to approach such a situation:
Your first course of action should be to review your transaction history meticulously.
Once you’ve reported the suspicious activity, the card issuer will initiate an investigation.
Dispute resolution might vary based on the card issuer hence it’s best to contact them for the same.
Understanding the unbilled amount on your credit card is crucial for better financial management. It can help you keep track of your spending, avoid exceeding your credit limit, and prevent surprises when your credit card bill arrives. By staying informed and diligent, you can make the most of your credit card.
**Disclaimer: The information provided in this webpage does not, and is not intended to, constitute any kind of advice; instead, all the information available here is for general informational purposes only. FPL Technologies Private Limited and the author shall not be responsible for any direct/indirect/damages/loss incurred by the reader for making any decision based on the contents and information. Please consult your advisor before making any decision.
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