Why Tracking Unbilled Credit Card Charges Is Crucial for You?

As a credit card user, it is important to understand the different jargon used by credit card issuers. This will help you improve your understanding of what the bank is conveying and how you should act. One of the most common terms you might have come across is the unbilled amount. The unbilled amount in a credit card is the sum of all transactions made after the credit card statement is generated. Understanding what it means can help you use credit more effectively and responsibly.

What is Unbilled Amount in Credit Card?

Every credit card has a billing cycle, which is approximately 30 days, after which the monthly credit card statement is generated. This monthly statement includes all your purchases done during your billing cycle. If you make a purchase using your credit card after your monthly statement is generated, then this amount will be considered an unbilled amount. You will be liable to pay this amount after the next monthly credit card statement is generated.

Let’s understand the unbilled amount in a credit card with an example. Suppose your credit card statement is generated on the 18th of every month. Then, it will include the transactions done from the 19th of this month to the 18th of the next month. Let’s say your credit card statement generated on 18th October has a bill of Rs. 25,000. Then, you must pay your bill before the due date, which is usually around 20 days after the bill is generated. In this case, the due date is 8th November.

If you use your credit card to make a purchase of Rs. 5,000 on 19th October, then this amount will be the unbilled amount that will be included in next month’s credit card statement that will be generated on 18th November. If you spent Rs. 50,000 instead of Rs. 5,000 on 19th October and want to convert it into Equated Monthly Instalments (EMI), you must do it within 20 days of making the purchase. Otherwise, the entire amount will be included in next month’s statement. However, if you convert it into an EMI of three months, with a monthly instalment of Rs 16,973, then only this amount will be included in your next month’s bill and will be considered as the unbilled amount. The next two instalments will be due in the respective months.

How to check unbilled amount on a Credit Card?

You can always check your unbilled amount or credit card spending before your statement is generated. By doing so, you will know how much credit you have utilized and how much is left over for the month. Following are some of the ways through which you can check your unbilled amount before your monthly billing cycle ends.

• Internet Banking

  You can check your unbilled amount through your bank or credit card issuer’s net banking portal. To check the unbilled amount, login to your net banking account, go to the ‘Cards’ section, and click on ‘Credit Cards’. Select your card to check the unbilled amount, available credit balance, total credit limit, billing date, and last credit card statement.

• Mobile Application

  Similar to your net banking portal, you can login to your bank’s mobile application and check your unbilled amount. To check your unbilled amount through the mobile app, make sure you download the app on your mobile and register using your account details.

• SMS Alerts

  One of the easiest ways to check the unbilled amount is through SMS alerts. When you sign up for a credit card, you automatically give consent to receive messages from the bank regarding your credit card usage and other alerts. Whenever you use your credit card, the bank sends the details of the transaction along with the used and available limit. This way, you can check the unbilled amount without even logging into your account.

• Customer Service

  If you have no access to net banking or mobile applications, you can always contact your bank’s customer service. They will give you complete information regarding your credit card balance and statement.

• ATM

  You can check your unbilled amount even at an ATM. The process of checking the unbilled amount is similar to withdrawing money from an ATM. Visit a nearby ATM, interest your card, and enter your PIN to check your unbilled amount.

• Visit Your Bank

  This is one of the most tedious and time-consuming processes, but it will help you find out your unbilled amount. Visit your bank’s branch and submit a request to find out the unbilled amount of your credit card. The bank will process your request in a couple of days and send you your unbilled amount along with details of your credit limit and available balance.

What are the consequences of not paying the unbilled amount?

• Interest burden:

  Non-payment of credit card dues can increase the total outstanding balance of your credit card. The banks charge an interest on the outstanding amount after the interest-free period ends. This interest ranges between 36% – 48% per annum. With a higher outstanding balance, the interest charges will be higher, increasing your financial burden.

• Fall in credit score:

  Late payment or non-payment of dues can negatively affect your credit score. This will further affect your financial credibility and reduce your opportunities to get loans at lower interest rates.

• Bad credit report:

  Your credit card issuer can take strict actions against you if you do not pay your credit card dues. They can give an unfavourable credit report, affecting your creditworthiness, and even cancel your card.

How to pay an unbilled amount in Credit Card?

You can use any of the following methods to pay your unbilled credit card amount.

Online Methods

Online methods are those that will allow you to pay your bills from the comfort of your home. Following are some of the online methods to pay your credit card bills.

• Mobile wallet or other payment platforms:

  With growing developments in the financial industry, various payment apps and digital wallets support credit card payments. All you have to do is download the app and create an account with your debit card. Then, you have to enter your credit card details to make the payment.

• Internet banking:

  You can login to your net banking portal to pay your credit card bills. This is one of the simplest methods, as the card is already registered with the bank, and you just have to pay your bills. If your credit card is not registered, then add the card to your banking portal once, and you can make payments every month easily with just a click.

• Online fund transfer:

  Online fund transfer options such as NEFT (National Electronic Fund Transfer) and IMPS (Immediate Payment Service) enable you to pay your credit card bills. Through NEFT, you can make credit card payments to any other bank using your bank account. In NEFT, you transfer funds from your account to the credit card account, and it will take 30 minutes for the money to be reflected. In the case of IMPS, the payment is made instantly. Enter all the necessary details, such as MMID, the contact number of the biller, and your bank details to make the payment.

• Auto debit facility:

  This is one of the easiest and safest ways to make your credit card payment. Auto debit also eliminates the risk of missing out on credit card payments. All you have to do is enable auto debit for the card in your net banking portal for the maximum amount before your due date. Every month, the money will automatically be deducted from your bank account towards your credit card.

Offline Methods

In case you are unable to pay your bills online, you can use any of the following offline methods to pay your credit card bills.

• Over the counter:

  To make an over-the-counter payment, visit the nearest branch of your credit card and pay your credit card bill. Fill in the cash deposit slip and submit it along with the cash to the concerned person.

• Cheque or demand draft:

  You can also draw up a cheque or demand draft in favour of your credit card and submit it to any branch of your bank. Since it takes time for cheques to be processed, make sure you pay our dues before the due date.

• ATM:

  If you have a credit card from the same bank that issued your debit card, then you can go to the ATM to pay your credit card bill. To pay the bill, insert the debit card, enter the PIN and select the option ‘Credit Card Bill Payment’. Then, enter the amount that you have to pay and follow the other necessary instructions to pay your unbilled credit card amount.

• Customer support:

  Customer service executives will help you make your credit card bills through your phone. All you have to do is call your bank’s customer service executive and provide the necessary details to make the payment. However, to follow this method, you must have a savings account with your credit card issuer.

What is the difference between an unbilled amount and an outstanding amount in a Credit Card?

Credit card users often get confused between unbilled and outstanding amounts on their credit cards. It is important to understand the difference between the two to manage your credit card bills and dues.

The unbilled amount, as mentioned above, is the amount which you have spent after the credit card statement is generated. This amount is not yet reflected in your credit card statement but will be included in the next month’s cycle and, hence, isn’t due in the near future. When the next month’s bill is generated, this unbilled amount will become an outstanding amount as it is included in the credit card statement.

The outstanding amount, on the other hand, is the unpaid amount on your credit card. It includes the current and overdue bills that you missed out on paying. The outstanding amount is to be paid before the due date or before the interest-free period ends. If you fail to pay the outstanding amount, you will be charged interest on the same. It is best to pay off your outstanding amount before the due date ends to maintain your credit score and escape falling into a debt trap.

Frequently Asked Questions

Can I pay my credit card bill before bill generation?

Yes, you can pay your credit card bill before the statement is generated. You just have to make the payment for the precise amount through net banking or any digital payment app. Since you paid the money already, you need not worry about it when the bill is generated.

What if I overpay more than the credit card amount?

If you overpay your credit card amount, then the balance on your credit card will be negative. This means the credit card issuer owes you money, and the next time you spend money using your credit card, you need not pay bills to the extent of the negative balance in your account. Make sure you do not overpay your credit card bills frequently, as it can lead to refund fraud, which can lead to freezing of your account.

Can I pay the credit card the same day that I used it for doing any transaction?

Yes, you can make your credit card payment the same day you use it for transactions. This ensures you maintain your credit score and never miss out on any credit card bills.

Is it okay to pay for a credit card twice a month?

Yes, you can make credit card payments more than once a month. By doing so, you will lower your credit utilization rate, which helps in boosting your credit score. Moreover, you can track your spending and reduce overspending by paying your credit card bills twice a month.

Can I pay unbilled transactions in advance?

You can pay your unbilled transactions on your credit card before the statement is generated. By doing so, you will never miss out on credit card bills and can maintain a healthy credit score.

Can I convert unbilled transactions into EMI?

Yes, you can convert your unbilled credit card amount into EMI. To do so, login to your credit card portal and select your card. Then, you will see the unbilled amount, which can be easily converted into EMIs. You must select the number of months in which you want to repay, and the transaction will be converted into EMI instantly.

Do we need to pay the unbilled amount?

You are liable to pay the unbilled amount of a credit card only when the credit card statement is generated. Until then, you need not worry about the unbilled amount.