A credit card is a financial tool that enables a cardholder to make purchases on credit. After you have made some purchases using a credit card your financial institution sends you a statement of the purchases either to your home or email address and net banking account.
This credit card statement is a summary of all your transactions you made using a credit card for a specific billing period. These statements are usually issued on a monthly basis and are necessary not only to keep records of your transactions but also to protect you against fraud and identity thief. Therefore, the safekeeping and proper maintenance of these statements is necessary and highly advisable.
How long should you keep your statements?
Credit card statements are one of the most important set of documents related to these financial tools other than the starter. It is vital to know how to use a credit card wisely and thereon.
Financial institutions these days send the credit statements either on your email address. You may also access them on your net banking account. Generally, you don’t need to keep the online statements for a long time. All you have to do is log in to your net banking account and download the statement.
Otherwise, you can call on the respective credit card customer care number and ask a representative or sign up for an SMS service provided by your card issuer.
If you still have not opted for an online statement, you may choose to receive the hard copies of your credit card statement on your registered home address.
By using these methods, it is advisable that you retrieve and keep your statements for a minimum of 60 days, unless they include for tax-related purchases.
Reasons to keep the credit card statement for 60 days
Here is why holding on to your credit bills for the above mentioned specified period can prove to be beneficial for you –
- Disputing errors: If there are any billing errors or unauthorized charges on your credit card bill, it is advised to immediately call or email to your financial institution. You will be required to attach the statement to specify your dispute. However, card issuers are legally liable to pay heed to such billing errors only for 60 days from the date of issue.
- Tax audit: If your statement includes tax-related purchases or expenses, it is advisable that you hold on to your statements for 6 years. Not only will these statements be required to prepare tax returns but they will also be useful during a tax audit.
- Record of accounts: You can use your credit bills to keep track of your spending and expenses. Cards like Bajaj Finserv RBL Bank SuperCard do not charge any fees to get information about your credit statements. You can keep a statement of your credit card transactions and plan your budget accordingly for the future to ensure sufficient savings.
Financial institutions usually provide convenient ways for cardholders to view and download their credit card statement from relevant websites or mobile apps. Much like the application for credit cards, this ensures ease for their users.
It is essential that you keep your credit card statements for some time in an organised way for reasons much to your benefit and convenience. You can access statements of your credit purchases and payment online as long as you keep your credit card open. Know the best benefits of a credit card and refer to a card which matches your financial requirements. Refer to leading card issuers and fulfil their eligibility criteria for the best on-card features.