Tips for Monitoring and Reviewing Your Credit Line Statements

Tips for Monitoring and Reviewing Your Credit Line Statements

16 March 2024 | By INDIE

When you hear the term 'credit', the first thought that comes to your mind is that of a traditional loan with a fixed repayment schedule. However, many changes have taken place in finance, and more flexible financial products are being offered to borrowers. One such product is the line of credit - a product that gives you access to a predetermined limit of funds. 

So, what is a line of credit loan? In contrast to a traditional loan, a line of credit loan has the following features that make it an attractive financial product: 

- You are offered a pre-decided fund limit

- You can access either a portion of the funds or the entire amount, whenever you need it

- The line of credit loan is accompanied by flexible repayment terms 

- The interest is charged only on the amount borrowed

For instance, INDIE's My Credit Line helps you obtain the desired funds instantly with multiple drawdowns. The versatility associated with a line of credit loan helps you manage your cash flows as well as meet any unexpected expenses. To make the most of the line of credit allotted to you, you must monitor and review the credit line statements regularly. 

Also Read: What Is a Line of Credit? 

Tips to Monitor and Review Your Credit Line Statements

A credit line is a versatile product that offers flexibility in terms of the amount borrowed and repayment schedule. However, you must remember that once you borrow the funds, it becomes a debt on which interest is charged. Listed below are a few tips to help you manage your credit line statements effectively - 

1. Understand the Terms

You must familiarise yourself with the terms and conditions that accompany the line of credit loan you have opted for. Make sure you are clear about the interest rate, the credit limit, the repayment schedule, the borrowing period, fees and penalties. This will help you make well-informed decisions and avoid surprises when reviewing your statements. 

2. Understand the Interest Rate Charged

In any credit facility offered, a significant element involved in the cost is interest charges. Develop the habit of calculating and monitoring the interest rate charged on your line of credit loan in every billing cycle. This will help you evaluate your borrowing capacity and find different ways to reduce the interest expense. 

3. Observe Credit Usage

Your credit utilisation, i.e. the amount of credit being used from the total credit available, impacts your credit score. Make an effort to maintain a low credit utilisation ratio by monitoring your line of credit statements periodically. This also helps you keep a check on your borrowing habits. 

4. Identify Any Errors

Conducting periodic reviews of your line of credit loan statements will help you identify any discrepancies or errors and get them rectified immediately. On identifying any discrepancy like unauthorised transactions, billing errors, etc., report the same with the respective financial institution and get it corrected. 

5. Plan the Repayment

Though a line of credit loan offers flexibility in borrowing funds, a repayment plan is essential to make comfortable and timely payments. The line of credit loan statement will help you track your repayment progress. To avoid missing out on payments, set up reminders or automate your monthly instalments. 

Tips to Manage Your Credit

Reviewing your line of credit loan statement helps you keep track of your outstanding amount and monitor interest charges. It is important to use credit wisely to ensure you do not miss out on future financial opportunities. Here are a few tips to help you manage your credit and become a responsible borrower -

1. Opt for credit only when it is required.

2. Limit your credit utilisation every month to less than 30% of the credit limit sanctioned to you.

3. Pay all your credit card dues on time to avoid late fees and heavy interest charges.

4. Develop the habit of budgeting; it helps you evaluate your expenses and make wise investments.

5. Always check and review your line of credit loan statements to identify any errors and get them rectified at the earliest. 


A line of credit is a versatile financial product that can be quite beneficial, especially in times of dire need. The flexibility offered in terms of the funds and repayment terms makes it an attractive option. To manage your finances effectively and make the best use of the credit sanctioned, you must review the loan statement regularly. This small step helps you monitor your credit utilisation, identify any discrepancies, track the interest charges, plan your repayment and take proactive measures wherever required. 

If you are looking for a flexible line of credit, check out INDIE My Credit Line, available on our app. You can get your funds instantly with a comfortable repayment schedule and experience a truly ‘You-First’ flexible line of credit.

Disclaimer: The information provided in this article is generic and for informational purposes only. It is not a substitute for specific advice in your circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for making any financial decisions based on the contents and information.