While reviewing your credit card statement, you might come across a line item labelled ‘unbilled amount’. This line may get you wondering what is an unbilled amount on a credit card. It means the amount has been deducted from your credit limit but is yet to reflect on your statement.
Beginners need to understand unbilled amounts and how they affect credit card usage. Learning about unbilled amounts will help in optimising your finances and managing your credit limit.
Basics of Unbilled Amounts on Credit Cards
This figure represents all transactions that have been authorised on your card but have not yet been processed or posted to your account balance. In essence, it’s a sum in limbo – charges that are yet to be shown in the statement.
The reason behind an unbilled amount is intriguing. The process is lengthy when you use your credit card to complete a transaction; it includes:
- Step 1: You swipe your credit card for a purchase
- Step 2: The merchant sends an authorisation request to your card issuer
- Step 3: Within a few days, the amount is finalised
- Step 4: The merchant gets the amount promised
In case there is a temporary hold on an amount due to a pending transaction, the amount will only be deducted after the transaction is completed. Otherwise, the hold will be removed. If your credit card statement is generated during this period, the hold amount will not appear on your immediate bill, as it has not yet been finalised.
How to Find out Your Unbilled Amount?
It’s important to keep a watchful eye on your unbilled amount, as these are pending charges. Even though the amount is yet to become official, it will reduce your credit limit. By monitoring this figure, you’ll have a clear picture of your available credit.
You can also avoid accidentally exceeding your credit limit due to purchases that have not yet been posted. Use any of the following options to know the unbilled amount:
- Net Banking
Just visit your bank’s website and log in with your ID and password. From there, navigate to your account details and check whether there is any unbilled amount or not.
- Mobile App
If you have access to a mobile app, then you can just log into the app with your password. Go to the section where all of your credit card details are mentioned; there, you can see the unbilled amount.
- SMS Alerts
With your registered mobile number, you can see all the transactions in real time. You can also check their details and whether they have been authorised or not.
- Customer Service
If you notice any discrepancy, you can call your credit card customer service and ask them about it. You can also ask them for your unbilled amount.
How to Pay Your Unbilled Amount?
It is simple: unless the amount is specified on your credit card statement, you cannot pay that amount. If the transaction is taking a bit longer than it should, then also, you can only pay the billed amount. However, there are some misconceptions about this topic that you should understand clearly.
Debunking Common Myths About Unbilled Amounts
There are two major misconceptions regarding unbilled amounts. If you want to maintain a healthy relationship with money and lead a stress-free life, you should understand these points:
Myth 1: Unbilled Amount Doesn’t Impact Your Credit Limit
This is a misconception, as your unbilled amount has a direct effect on your credit limit. For instance, your credit limit is ₹2 lakhs, and your unbilled amount is ₹20,000. Your available limit becomes ₹1.8 lakhs.
Myth 2: Unbilled Amount Incurs Interest
Actually, unbilled amounts do not incur any interest unless you skip making a payment. Suppose your transaction was completed in March, and the amount is stated on your bill in May. During this period, there will be no added interest. If you complete the payment in one go, then you can start using your card without incurring any fees.
To easily monitor your unbilled amount, you will need to have a credit card with a powerful mobile app. You can get access to one such app with the One Credit Card. While this card helps you earn 5X reward points on your top spending categories each month, the OneCard App will add more value to it. You can easily redeem these reward points anytime you prefer.
The app also offers you features like MyRent to pay your rent on time and Subscriptions Hub to pay off your subscription bills quickly. Plus, you can use the built-in GPS to find the best offers around you and reach the location easily. Finally, if you are new to this spectrum, this credit card can make everything easy for you. Apply now to enjoy this premium metal card.
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