Check Your Credit Card Statement Every Single Month
Did you know that you could save money with your credit card statement? This article will tell you how to read your monthly credit card statement.
Did you know that you could save money with your credit card statement? This article will tell you how to read your monthly credit card statement so that you will never pay more than you need to again.
Information About Payments
Information about payments is the least of what you will need to get from your statement. This information includes the following parts of your credit card statement:
- Credit card balance
- Due date for your monthly payment
- Minimum payment
- Balance transfers
- Cash advances
- Interest that was charged
- Payments and credits
- Previous balance
While you should always pay your monthly minimum payment, stopping at the minimum amount will put a lot of interest payments in your lap. Your credit card statement will tell you just how much making the minimum monthly payment will end up costing you.
Even if you pay down your entire credit card balance, you don't know if you could have paid for a mistake. To prevent this from happening, you will need to examine these other aspects of your statement.
Your Account Summary
Just taking a quick glance at your account summary should tell you if anything is wrong. The summary not only includes your new balance for the month but it also tells you how it was calculated. Some of the parts of your account summary you should examine every month include:
What You Need To Look For Every Month
If anything in your account summary looks even the slightest bit questionable, look through your credit card statement for important details and contact your card issuer to talk about any errors you may have found. 15 percent of credit card statements have errors, so don't pay for a mistake you didn't make.
Even if your account summary looks like it's free of problems, you should still review the remainder of your statement. One wrong fee or charge may not stand out to you at first glance.
Before you put your monthly statement away, always check your available balance. You could have less credit available than you may have thought. By becoming aware of how much you have to spend, you won't subject yourself to draconian over-limit fees.
Every month, you should spend an extended amount of time going over your credit card transactions. Taking the time to verify every purchase and charge will ensure that you're not on the hook for fraudulent activity.
If you don't make a lot of your purchases on your credit card, you should remember all of them. But if you do use your card a lot, never assume that you automatically made every purchase listed on your statement. Record every purchase you make over the month and check this against your statement. You can also save your receipts.
Your Interest Rates
Every month, you want to ensure that you're getting charged the correct interest rate for your activity. Interest rates are higher for cash advances and balance transfers. Make sure that you're not getting the cash advance interest rate for making a simple, everyday purchase.
Mistakes on your credit card statement can be costly. By examining your statement line by line every single month, you're not only keeping money in your pocket. You're also protecting yourself against fraudulent activity that could also cost you a lot of time and anxiety. If you do it right, checking over your credit card statement can get you closer to staying in the black.