How to Understand Your Credit Card Billing Statement?

Key Sections of Your Credit Card Statement in UAE

Although the layout of your credit card statement depends on your bank, most elements remain the same. They detail all your monetary activities, imposed fees, and repayments for the entire billing period. When you check the statement regularly, you can smartly manage your card and account. 

Here are the sections of a typical card statement in UAE — 

Account Summary

The section of Account Summary is usually at the top of the statement. It gives a general view of the most important financial figures over the billing period. Generally, it contains the following details —

1. Opening Balance: Carried over the total amount outstanding from the previous billing cycle
2. Payments & Credits: Total payments made during the billing period, as well as any refund or adjustment that has been applied
3. Purchases & Charges: Record of all the new transactions, which include retail purchases, fees, and other applicable charges
4. Closing Balance: Total amount pending for the current billing period, which is the sum of the previous payments, credits, and new charges

Payment Details

This section of a credit card billing statement in UAE represents all your repayment details. This includes the minimum payment due, total outstanding balance, and the payment due date. 

When you pay only the minimum amount, the leftover balance attracts interest. The bank calculates this on a daily basis till you pay off the whole amount. Paying only the minimum amount due each month can increase the total cost of borrowing. This is because the interest is charged daily over a longer period of time.

Late Payment Warning

This appears when the minimum payment is not made by the due date. UAE banks warn that late payments can lead to fees, higher interest rates, and a negative impact on aecb credit score. Persistent non-payment may result in temporary suspension, deactivation, or debt collection.

Minimum Payment Warning

Paying only the minimum keeps the account active but increases overall repayment costs due to interest on the remaining balance. In card statements, some banks provide an estimate of how long it will take to clear the debt if only minimum payments are made, highlighting the long-term financial impact.

Credit Counselling Notice

Some UAE banks include a credit counselling notice on statements to guide customers struggling with debt. This offers access to expert advice and structured repayment plans to help maintain financial stability.

Transaction-Level Details

In this part of your credit card statement, you get details about all the transactions from the billing cycle. It usually shows the date of the transaction, the name of the merchant, and the transaction amount. For international transactions, it can even mention the place or currency. 

Important!

It’s crucial to check this part regularly, as you can promptly find out unauthorised charges, duplicate transactions, or wrong charges. In case of any discrepancies, UAE you can always raise a dispute with the bank through mobile apps, online banking, or customer service.

Itemised Transactions

Some card statements may give a thorough outline of all the transactions during the billing cycle in detail. It can show a breakdown of spends as per the merchant category (e.g., dining, travel, groceries), currency change data for international purchases, foreign exchange mark-up fees, and more. This can also include any cash advance withdrawals. 

How are Interest Charges Calculated in UAE?

The credit card statement provides a clear explanation of how much interest is applicable. However, it’s important to know the maths behind the same.

In most cases, interest is incurred when the full outstanding balance is not settled by the payment due date. In this case, the bank adds finance charges to the remaining amount. 

For calculating the interest, banks typically use the following — 

• Outstanding balance carried forward
• Daily interest rate based on APR
• Number of days the balance remains unpaid

Example (UAE standard)

Suppose you have an outstanding balance of AED 2,000 with an APR 39%. If you decide to pay it off in 12 months, your monthly interest would be around AED 38. 

Keep in mind that the calculation above is for reference only. Actual interest amount and method may vary as per the bank. 

An Overview of Rewards and Benefits in Card Statements in UAE

Most UAE credit cards let you earn points, air miles, or cashback on all eligible spends. With your card statement, you can understand the process, reward redemption, and conditions.

Rewards Summary

The rewards summary includes —

• Initial points balance
• Points accrued throughout the billing cycle
• Points redeemed
• Points adjusted or no longer valid

Points Earned, Redeemed, and Expiring

UAE credit card billing statements distinctly show —

• Open account points as a result of purchases
• Rewards claimed (cashback or vouchers)
• Points nearing expiration

How to Get Credit Card Statements in UAE?

Here’s how you can get a card statement in UAE with most banks — 

Periodic Emails 

• Most banks automatically send monthly statements to your registered email address
• You get the statement after the billing cycle ends
• Such e-statements are free and easy to store or access 

Mobile App/Online Banking 

• For statements or transactions for certain intervals, you can manually get a statement
• Log into your account through the bank’s official mobile app or internet portal
• Under ‘cards’, locate the option for credit card statement
• Choose the dates and view or download the statement 

Offline 

• You can also visit a nearby branch of the bank for a physical statement
• Keep in mind that the bank may charge a fee for the same 

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