5 Key Terms in Your Credit Card Statement You Must Know

If you are a new credit card holder, checking your monthly credit card statement will be a regular routine for you. It is important to familiarize yourself with your statement of account to ensure that you manage your credit card effectively and avoid unnecessary fees.

Here are some of the key terms in your BPI Statement of Account (SOA) you must know. 

Statement Date 

Also called the cut-off date, the statement date marks the final day on which transactions are posted to your account for the billing period or cycle. 

Payment Due Date 

This date refers to when you must pay the minimum payment to avoid incurring late fees and other penalties.  

Credit Limit 

Your credit limit is the maximum amount you can borrow using your credit card. Staying within this limit is important for maintaining a healthy credit score and avoiding over-limit fees. 

Total Amount Due 

The total amount due indicated in your SOA refers to the overall amount you owe as of the statement date. On top of all your purchases, availments, and cash advances, this amount also includes all interests, penalties, fees, and other charges, if you have any.

Minimum Amount Due 

This is the lowest amount you can pay on your credit card bill on or before the payment due date to keep your account in good standing and avoid incurring late payment charges. The minimum amount due is equal to 3.57% of the total amount due on top of other fixed monthly amortization. 

Regularly reviewing your statement and being aware of these key terms will help you maintain control over your finances, ensuring that you use your credit card responsibly and effectively.