Have you ever scratched your head trying to read your credit card statement? The counterintuitive layout and financial jargon are pretty intimidating—yet it’s vital to understand the statement if you want to manage your spending and avoid being charged late fees.
Lucky for you, we’ve put together a short guide on how to read credit card statements so you can stay updated on your financial commitments. Let’s dive in!
Transaction History
The transaction history outlines every purchase and cash withdrawal you’ve made during the current billing period (usually a month). Transactions are dated, and the merchant’s name is provided along with the amount billed.
It’s vital to check the transaction history in your credit card statement periodically for suspicious and unauthorized transactions. If you see these, report them to the bank immediately.
Payments and Fees
The payments column shows how much you’ve paid towards your credit card balance along with the payment method (e.g., via the bank app or on your laptop). On the other hand, the fees column primarily shows interest owed on late payments.
If you aren’t current with your payments, you’ll notice late fees billed to your account. Additionally, if you’ve travelled overseas and used your credit card for payments in a foreign currency, chances are you’ll notice foreign exchange charges in the fees column.
Account Summary
The account summary section tells you the current outstanding balance on your credit card. It also highlights the minimum payment you must make to keep you in good standing as well as the due date for payments.
While it’s tempting to upkeep your card by paying the minimum payment, we recommend paying the outstanding balance in full whenever possible. It’s also vital to stick to the deadline to avoid late fees that’ll quickly rack up due to interest that compounds daily.
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