There are many credit card terms that you may be unfamiliar with or find difficult to understand – no matter whether you’re a first-time credit cardholder or an experienced one. One common question that users have is what is unbilled amount on a credit card? 

It’s imperative that you learn about unbilled amounts and how they can affect your usage, as this is crucial for optimising your finances. Let’s start with the basics and dispel common misconceptions so you can better manage your credit limit.

Basics of Unbilled Amounts on Credit Cards

What is an unbilled amount? It refers to the portion of your credit card balance that has been used but doesn’t reflect on your statement. This happens because your billing cycle doesn’t coincide with the date of your purchase.

Say you spent ₹28,650 using your credit card this month but your statement reflects only ₹25,000. The amount of ₹3,650 (₹28,650 – ₹25,000) is your unbilled amount. If you take a closer look, you will see that you have made the transaction after your billing cycle came to an end for the previous month. 

In this case, the transaction will be noted, but it will not be reflected in your immediate credit card statement. You will see the transaction amount in the statement for the following month. So, make sure you remember:

• The amount will be added to the following credit card statement
• It will reduce the overall credit limit for the following billing cycle
• Your unbilled amount does not affect your minimum due in any way

Ways to Check Your Unbilled Amount

Are you finding it hard to know whether there are any unbilled amounts on your credit card? Keeping a note of every credit card transaction will ensure you stay on top of the game. Use any of the following methods to check unbilled amounts on your credit card:

• Log in Using Your Credit Card Credentials

You can find your billed and unbilled amounts in your account via the mobile app or online portal

• Send an SMS 

You can SMS your credit card provider to understand if there are any pending transactions, which will be added to the next bill

• Contact Customer Care 

You can also call customer service to understand your spending, including billed and unbilled amounts

Misconceptions vs. Reality of Unbilled Amounts on Credit Cards

There are two misconceptions that most people have when they try to comprehend what is unbilled amount on a credit card. Let’s see the comparison below to understand how the reality is different, so you can use your card in a more informed manner:

Misconceptions	Reality
The unbilled amount incurs interest	The unbilled amount does not incur any interest until the transactions are included in the bill.  On paying the amount by the due date, you will not incur any interest.
The unbilled amount is not included in the credit limit	The unbilled amount decreases your credit limit for the following month.  If your credit limit is ₹50,000 and your unbilled amount is ₹2000, the credit limit will become ₹48,000.

Best Practices to Manage Unbilled Amounts on Credit Cards

With these practices, you can easily manage your unbilled amount without hampering your credit utilisation ratio:

• Track your spending in detail 
• Use the credit card company’s mobile application or online portal to check your unbilled amount every month 
• Limit your spending by the end of the billing cycle or spend as per a budget 

Differences Between Unbilled Amounts and Outstanding Balances

Unbilled amounts and outstanding balances are two separate things. Check this table to understand the differences between the two:

Unbilled Amount	Outstanding Balance
It doesn’t reflect on your current bill but will appear in the next one It doesn’t incur an interest rate unless it becomes an unpaid balance  It doesn’t hamper your credit score	It reflects on your current credit card statement It incurs interest charges If not paid on time, it hampers your credit score

However, the similarity between these two is that you will have to repay both of them to be debt-free.

Knowing your unbilled amount is a wise way to manage your credit card spending in the next billing cycle. A card that makes it easier for you to keep track of all purchases and stay on budget is the One Credit Card. 

Built on full-stack technology, the OneCard App helps you set spending limits for various categories and sends you notifications so that you are always in the know. What’s more, it helps you enjoy unlimited deals and discounts across categories like grocery, medicine, travel, fuel and electronics.

You can earn 5X reward points on your top two spending categories each month and enjoy other features like zero-interest EMI conversion, UPI-linked payments and up to 5 add-on cards. 

To get started, apply now and enjoy the benefits of this lifetime-free card!