Unbilled vs Outstanding: Credit card users must know differences between these two
Unbilled vs Outstanding amount: A credit card is an important tool that allows users to purchase costly items without much hustle as it will let users convert the total amount into affordable EMIs. Moreover, credit card offers several advantages like cashback offers, access to lounge and others. In order to avail of all these benefits, users must know all the aspects related to credit card usage. Two such aspects are unbilled amounts and outstanding amounts in credit cards. Some people usually get confused between the two. So here we are going to explain the key differences between the two.
An unbilled amount of a credit card is the total of all transactions that were done outside the current billing cycle and therefore it will be included in the next month’s credit card bill.
How to check the unbilled amount?
Credit Card issuers let users check unbilled transactions in various ways. One can use a mobile app or net banking to check your unbilled amount.
Why checking unbilled amounts is important?
Knowing your credit card’s unbilled amount is important as it gives users a better understanding of the remaining credit limit of the card.
Outstanding amount on credit card
On the other hand, the outstanding balance is the total amount you owe on your credit card after. This included the previous due amount, the unbilled amount and any other applicable charges. In other words, the outstanding amount includes the amount from previous months and the amount spent after the statement closing date.
It is also very important to understand that having a high outstanding amount may have a negative impact on your credit card score. This can make it difficult for users to avail more credit in the future. Therefore it is very important to pay the outstanding amount on a credit card on time.
