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Billing cycle and interest free period is different from each other.

Using a credit card prudently is important, since injudicious use can land one in a debt trap. Spending money through credit card is easy, but, at the end of the day, one must pay it back with his/her hard-earned money. So, one should check these things before paying the first credit card bill. While paying the credit card bills one should check some important things; here is the check list.

Payment due date

Payment due date is the most important point to remember. If you miss the due date for payment, you must pay a high penalty as late payment.

Total amount due

Total amount due is the amount that includes interest applicable or any late payment charges, annual charges, service charges, and other transactional fees.

Minimum amount due

This is the minimum amount an individual needs to pay on their bill just to keep the credit card active and to avoid being charged a late fee.

Statement date

The statement date is important because it tells when your cycle begins and ends. If you miss a payment, the bank charges you a high late fee.

Billing cycle

The billing cycle is important because it helps you to understand your spending. It generally lasts for 30 days. Billing cycle and interest free period is different from each other.

Interest free period

Every credit card issuer gives 45-50 days interest free period to the card holders. During this period no extra charge is levied on the outstanding amount. But beyond this window, holders have to pay a high interest rate ranging between 34% and 40%.

Expert opinion

Credit card is very important instrument in the modern world. But everybody should check all the rules and regulation before opting for it. “A credit card is very useful if it is used judiciously. Otherwise, credit cards can become a burden on an individual,” said Nilotpal Banerjee, a personal finance consultant from Kolkata.