what is unbilled amount in hdfc credit card?

In managing your HDFC credit card, it’s essential to grasp the full scope of terms associated with your transactions. One term that often leads to confusion is the unbilled amount. For individuals who actively use their credit cards for purchases, services, and subscriptions, understanding how unbilled amounts work can help ensure seamless account management, avoid unnecessary charges, and maintain a strong credit score.

What is the Unbilled Amount in HDFC Credit Cards?

The unbilled amount refers to the total of all transactions that have been made using your HDFC credit card but have not yet been billed. These transactions occur between the current statement generation date and the upcoming billing cycle. Simply put, the unbilled amount consists of all purchases, payments, and any other charges that haven’t been included in your latest credit card statement.

For instance, if your credit card billing cycle ends on the 20th of the month, and you make a transaction on the 21st, the amount spent will be classified as an unbilled amount until the next cycle begins and a new statement is generated.

How Does the Unbilled Amount Work?

To understand the mechanics behind the unbilled amount, it’s vital to consider the billing cycle of your HDFC credit card. Each billing cycle typically spans 30 days, after which a statement is generated showcasing all billed transactions. Any new transactions made after this statement generation fall under the unbilled amount.

Unbilled amounts will only become part of your payable balance once the new statement is issued, but it is crucial to remember that although they are unbilled, they still form part of your total outstanding dues. Monitoring your unbilled transactions helps you stay on top of your spending and avoid any financial surprises when the statement arrives.

Components of the Unbilled Amount

The unbilled amount in an HDFC credit card account is not limited to purchases alone. There are several other factors that contribute to the total:

1. Unbilled Purchases: Any retail transactions or online purchases made with the credit card after the billing date.
2. Cash Withdrawals: Cash advances taken from the credit card after the billing date will also fall under the unbilled amount.
3. Pending EMIs: If you’ve converted previous purchases into EMI (Equated Monthly Installments), upcoming installments for transactions made after the last statement generation date will reflect as unbilled.
4. Interest Charges: Any interest accrued for late payments or cash withdrawals after the billing cycle will appear as part of the unbilled amount.
5. Fee Charges: Additional fees like late payment penalties, over-limit fees, or any card-related service charges that have not been included in the statement also contribute to the unbilled amount.

Difference Between Unbilled Amount and Total Outstanding

It’s important to distinguish between the unbilled amount and the total outstanding amount. The total outstanding amount is the sum of all billed and unbilled transactions on your card. While the unbilled amount only covers transactions after your last statement, the total outstanding will give you a complete picture of what you owe, including the previous billing period’s dues and the current unbilled charges.

How to Check Your Unbilled Amount in HDFC Credit Card

Staying informed about your unbilled amount helps in better managing your finances. HDFC provides several convenient ways to track the unbilled transactions on your credit card.

1. HDFC Netbanking Portal: You can log into your HDFC Bank Netbanking account and view your credit card details. Navigate to the credit card section, where you’ll find an option to check your unbilled transactions and their cumulative total.
2. Mobile Banking App: The HDFC Bank Mobile App allows users to quickly check their credit card details, including the unbilled amount. Go to the Credit Card section and select unbilled transactions for real-time updates.
3. Monthly Statements: Although the unbilled amount won’t appear directly on your latest statement, you can calculate it by reviewing any transactions made after the statement generation date.
4. SMS Alerts: HDFC Bank offers SMS alerts to keep you updated on your credit card activity, including unbilled transactions. By enabling this feature, you can receive timely notifications about your purchases and the resulting unbilled amount.

Impacts of Unbilled Amount on Credit Utilization

Your credit utilization ratio—the percentage of your total credit limit that you’ve used—directly impacts your credit score. Even though the unbilled amount has not been added to your current bill, it still counts toward your overall credit usage. If you consistently spend beyond 30-40% of your credit limit, this could negatively impact your credit score.

For example, if your credit limit is ₹100,000 and your total billed amount is ₹30,000, but your unbilled amount is ₹20,000, your total utilization is ₹50,000, which is 50% of your credit limit. It’s advisable to keep a close eye on your unbilled purchases to avoid overutilization and potential damage to your creditworthiness.

How to Manage Your Unbilled Amount Wisely

Here are some strategies to manage your unbilled amount efficiently:

1. Monitor Transactions Regularly: Consistently check your unbilled amount to avoid overspending and stay within your budget.
2. Make Pre-Payments: If you know you’ve made significant purchases that will result in a high unbilled amount, consider making partial payments before the next billing cycle. This can help reduce the financial burden when your actual bill arrives.
3. Use Alerts and Notifications: Set up SMS or email alerts for each transaction. This will not only help you track your spending but also ensure that you are aware of any unbilled amounts that could impact your credit utilization.
4. Plan Purchases Around Your Billing Cycle: If you’re making large purchases, timing them right before the billing cycle closes could give you extra time to arrange payments. Conversely, making significant purchases right after the statement date might result in longer interest-free periods, depending on your payment strategy.

Unbilled Amount and Your Interest-Free Period

The interest-free period is one of the key benefits of using a credit card. Typically, credit cardholders enjoy an interest-free period of up to 45-50 days, depending on the transaction date and the billing cycle. However, it’s important to remember that this period only applies if you’ve paid the previous billing cycle’s dues in full. Any outstanding balance, including the unbilled amount, that carries over to the next cycle will attract interest.