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Credit Card Bill- A Better Understanding Credit card bills have become a staple of most of our lives as we move towards a growing dependence on credit. Credit card bills usually contain a list of information, some of it intelligible, while the rest appears to be the result of advance computations that you will never understand. For most of us, the most important sections of a credit card bill are the ones that inform us of the total amount due and the date by which that amount is to be paid. There is a lot more to a credit card, bill, however, and knowing all the components of your bill can help ensure you don’t miss bill payments or lose out on perks that your card might offer you. What’s My Credit Card Bill Contain Besides just the amount due and the total purchases made during that period of time, a credit card bill contains a list of other information relating to your purchases and spending habits. Along with these, additional charges and fees are also a feature, and one you should be aware of, especially since these could raise the total amount you have due quite exponentially. The charges that are reflected in your credit card bill are as given below: Previous and Purchase Balances The biggest portion of your monthly credit card bill will consist of the previous and current purchase balances you have made over the course of your billing cycle. These charges comprise of any outstanding bills (amount left unpaid from your last bill) and your current bill charges. Cash Advances Using your credit card to withdraw money from an ATM would result in a cash advance charge, which is displayed as a cash advance on your credit card. Such a transaction would attract interest immediately, and does not have a free-look period. Cash advances also attract higher interest rates and should be avoided unless absolutely necessary. Balance Transfers A credit card enables you to transfer your debt from one card/multiple cards to other cards. Doing this will result in the debt being added or transferred to the other card and does not cancel the debt. If you have moved debt from another card to this card, it will reflect along with the interest charges associated with it in your bill. Interest One of the most important aspects of a credit card bill, the interest due is the charge associated with taking money on credit. In other words, it can be viewed as the charges for what is essentially a loan. Failure to pay your due amount each month will result in the balance amount being carried forward to your next billing cycle, along with interest charges on that amount. Thus, your current bill will display the amount due based on your purchases charged to the card during this period as well as the interest and balance that was carried forward, if any.