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