Your credit card statement is more than just finding out the bills you have paid with your credit card. You need to know the important details of a credit card statement to make wise financial decisions. Here’s a quick explanation of how to read a credit card statement.
A credit card statement basically includes detailed billing information of your credit card usage, your outstanding balance, your minimum repayment, any interest and non-interest charges… the list goes on!
There are plenty of articles on the Web that explained the elements of a credit card statement in depth. Therefore, this post will guide you through the basic terminology to help you understand.
Statement Date – Date of the month the statement is generated. The statement records all transactions made from the last Statement Date to the current Statement Date.
Minimum Payment Due – The minimum amount payable.
Payment Due Date – The date payment is due.
Credit Limit – The credit limit of the credit card you own with the respective bank.
Previous Balance – The total balance due at the end of the previous statement cycle.
Total Balance Due – Total amount payable includes any previous balance, new transactions, cash advance and fees/charges incurred.
Easy-to-read Credit Card Statement
First, look at the Statement Date and Payment Due Date. Ensure you’re not too late in your repayment.
Then, go line-by-line to check on what you’ve been charged for. Call your bank immediately if you find something is amiss.
Always check your credit card statements line by line every month. Call your bank immediately if you were charged for something you did not pay for, even as little as RM1. This is one of the telltale signs of credit card identity theft.
The short video here shows you how you can take advantage of the Statement Date and earn some cash. Please note, not all statements will look the same, but each typically includes the same basic information.
Don’t buy something when you don’t have the means to pay. Always pay off your balances in full! The bank will impose finance charges when you only pay the monthly minimum amount. The video also shows you the finance charges calculation step-by-step.