Great job! You now have a credit card. Congratulations to adult life! You must feel awesome to have this piece of plastic in your wallet, right? 😎
However, the monthly bill can look quite different and strange. In fact, it does. Don’t worry, just relax.
First, you need to find the Statement Balance. It is the total sum of expenses made during this billing period. It is the terrifying number located at the very top of your bill. Paying the whole balance sounds awesome.
Find the Minimum Payment Due next. It is a trap door. It is the absolute minimum you need to pay to not to get penalized. Only this payment makes you eligible for interest rates.
Interest is the price of borrowing money from the bank. It shows you how expensive it is. The interest rate is quite high.
Check all the transactions attentively. Have you paid for the gaming skin last Tuesday? Did you make unexpected charges?
Sometimes there could be a fraud or an error made by the merchant. Call the customer service hotline if you have noticed anything suspicious. Don’t attempt to solve it by yourself.
It takes you no more than five minutes to read a bill. Failing to do so can cost you hundreds of dollars or even destroy your credit score. It is certainly not what you want in the future when renting apartments and buying cars.
Think of it as of a game where you have to keep your balance at zero level. Then you will experience the excitement of being free of interest. Good luck! 💳