- The Bank Sends the Billing Statement
All purchases made during the billing cycle are summarized in a monthly credit card statement.
The statement typically includes:
- Total purchases.
- Remaining available credit.
- Minimum payment due.
- Payment due date.
- Interest charges and other applicable fees.
Cardholders are responsible for paying their balance before the due date to avoid interest and late payment fees.
What Is a Credit Limit?
A credit limit is the maximum amount a cardholder can borrow using the credit card.
For example, if your credit limit is $3,000 and you spend $1,200, your remaining available credit will be $1,800.
Once you repay the $1,200 balance, your available credit returns to the full $3,000.
Customers with a strong payment history may qualify for a higher credit limit over time.
