Spending a little time reading your credit card statement every month can help you spot errors, monitor your spending and be a better guardian of your financial health. Your monthly credit card statements are full of useful information, and knowing how to read credit card statements and use the information contained in them is an important part of responsible money management. Although credit card statements can seem a bit intimidating, they are easy to read once you know what to look for.
Step 1
Check the account information section, which includes your name and account number. Look for the billing period, which lets you know the period of time this particular statement covers. Keep in mind that your statement might not include your most recent credit card activity.
Step 2
Make note of the payment due date in the account information section so that you can pay your credit card bill on time and avoid late fees or additional interest charges.
Step 3
Look for the payment information section, which includes the total amount you owe on a particular card and the minimum payment you're required to make on the card. Keep in mind that interest will accumulate on any portion of the balance that goes unpaid, increasing the total amount you owe for that card.
Step 4
Go through the Account Activity section, which lists every charge made by your card during the listed billing period and usually makes up the bulk of your credit card statement. Verify that charges on the statement match up with your actual purchases and make note of any unauthorized charges that appear on the statement. If you do find unauthorized charges, call your credit card company immediately to notify them.
Step 5
Look for the balance summary. Note the accrual of any finance charges and your total remaining credit line.
Step 6
Consult the box of finance charges, which tells you the amount of interest you'll have to pay on any of the balance you carry over to next month's bill.
Tips and Warnings
- Starting February 22, 2010, a new federal law--Credit Card Accountability Responsibility and Disclosure Act of 2009--requires your credit card statement to include a box totaling up the amount of fees and interest you've paid over the course of the year. Your statement will also be required to show you the amount you'd have to pay each month to pay off your credit card in 36 months, including interest and fees.
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