Understanding Your Credit Card Statement

Credit Card Statement Guide

Learn how to read and understand your monthly credit card statement.

Statement Sections

Account Summary:

• Previous balance
• Payments and credits
• Purchases and charges
• Interest and fees
• New balance

Payment Information:

• Minimum payment due
• Payment due date
• Late payment warning

Transaction History:

• Date of each transaction
• Merchant name
• Transaction amount
• Running balance

Important Dates

Statement Closing Date:

• Last day of billing cycle
• Transactions after this appear on next statement

Payment Due Date:

• When payment must be received
• Typically 21-25 days after closing date
• Pay by this date to avoid late fees

Grace Period:

• Time between closing date and due date
• No interest charged if paid in full
• New purchases may not have grace period if balance carried

Understanding Charges

Interest Charges:

• APR (Annual Percentage Rate) applied
• Calculated daily on unpaid balance
• Can vary by transaction type (purchases, cash advances)

Fees:

• Annual fee (if applicable)
• Late payment fee
• Over-limit fee
• Foreign transaction fee
• Cash advance fee

Minimum Payment

What it includes:

• Usually 1-3% of balance
• Plus all interest and fees
• Minimum of $25-35

Warning: Paying only the minimum means:

• Takes much longer to pay off
• Accumulates significant interest
• Can take years or decades

Payment Example

If you have a $5,000 balance at 18% APR:

• Minimum payment only: Takes 13+ years, costs $3,500+ in interest
• $150/month: Takes 3.5 years, costs $1,300 in interest
• Pay in full: No interest charged

Rewards Summary

Track your rewards:

• Points or cash back earned
• Points redeemed
• Current balance
• Points expiration dates

Disputed Charges

If you see an error:

1. Review charge details carefully
2. Check with authorized users
3. Log in to online banking
4. Go to Dispute a Transaction
5. Submit within 60 days
6. Provisional credit may be issued