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Understanding Your Credit Card Statement

You probably feel all kinds of emotions when you receive your credit card statement. It may be confusing.

It’s understandable.

Every credit card statement contains the same information: balance, minimum payment due, the interest charged. In the following sections, we’ll explain how to use the information. You can still use it, even though your statement may look a bit different.

1. Payment Information

New Balance: What’s the deal? You owe money for your most recent billing cycle. Refer to: Statement Balance. You won’t pay interest if you pay the full amount every month.

Minimum Payment Due: the lowest possible payment. Minimum monthly payments are sometimes set amounts, sometimes a percentage. 

Payment Due Date: I’m sure that’s easy to figure out. Failure to meet that deadline will result in a penalty. Don’t forget to set up automatic payments or create a calendar reminder.

Warnings: An explanation of what will happen if you fail to pay on time. A late fee will be charged. Repeat offenders may be charged an interest penalty. Remember to call your credit card company if, for any reason, you forget to make your payment – and that’s not usually your style – and ask them to waive the fee just for this one time.

2. Details About Your Rewards

The good stuff. In this section, you can see all the cash back, points, or miles you’ve earned so far. You can also see how much you’ve saved so far. 

3. Account Summary On Credit Card Statement

You can see everything that is reflected in your updated balance: the balance from last month, payments or credit, as well as new charges, fees, and interest. Bam. New balance. Your payment cycle dates are also usually included here, as well as your credit limit total and how much of it is still available.

4. Notifications regarding your account.

Read everything carefully. You may want to know disclosures and other important information from your bank’s lawyers. While you don’t need to read this every month, it’s important to know how they handle mistakes and how they handle returns and refunds.

5. Transactions on the account.

Sometimes referred to as transaction history. This is the long list of all the purchases you have made recently. We’ll provide you with background information, like where, when, and how much you spent. Payments and credits will also be included. Review it monthly to ensure it is accurate. Report anything you notice that is incorrect.

6. Interest rates and fees

Amounts of interest, fees, and interest you have paid this year will be shown, along with your current interest rate. This can add up pretty quickly. This is due to compound interest. Verify everything is the way it should be. 

A credit card statement is hard to read, just like the Aquarius at the poker table. You can take better control of your money if you know what you’re looking at and what it means. Rather than paying interest or fees, you can use it for fun things such as virtual concerts and road trips. 

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