It's important to understand how to read your credit card statement. This way you can to keep track of your spending, make repayments on time, avoid fees and interest charges, and catch any dodgy transactions.
Below we've outlined the major features of a credit card statement.
Your statement period is usually listed in the top right-hand corner of your statement. Statement periods are typically 30-day periods.
If a credit card offers interest-free days, these days start from day 1 of the statement period.
Cards can come with up 55 days interest-free. From day 1 of the statement period you have 55 days before interest is charged on your card spending. If you make a purchase on day 2 of the statement period you have 54 days interest free. On day 3, 53 days.
Let's assume that your card provides up to 55 interest-free days and the statement period is from 27 February to 26 March. The interest-free period for this statement period would end on 23 April.
In this example, if you make a purchase on 27 February, you can make use of 55 interest-free days. If you make a purchase on 26 March, you get 28 interest-free days.
Learn more about how credit card interest charges work.
You have to make the minimum payment by the payment due date. You can pay off the entire balance, or more than the minimum, before the due date.
But you have to pay at least the minimum repayment by this date. If you don't make this payment on time your credit score will be affected and you may have to pay a fee.
When using a credit card, you must pay a minimum amount each month. The minimum repayment is usually between 2-3% of your outstanding balance.
If you've paid your bill late or paid less than the minimum, the amount you're yet to repay will be detailed in the "overdue" section of your statement.
This is a summary of the total amount of money charged to the card during the statement period. Look at the new charges to make sure the total amount matches up with the transactions that you've made. This can help ensure there aren't any errors on your statement (such as fraudulent transactions or double charges).
This is the total of all the payments you have made towards the card, along with any refunds, during the statement period. Some refunds can take a few weeks to process.
This amount refers to how much you owe on your credit card account in total. If you pay more than you owe, this figure goes into negative.
While you're only obligated to pay the minimum payment each month, you should aim to pay as close to the closing balance as possible. If you pay the closing balance in full, you can avoid interest.
This list details all the transactions you've made on that card during that statement period. It should include the date of the transaction, its reference code, the type of transaction and the dollar amount.
While banks usually present the interest rate as an annual percentage, it's actually charged on your transactions on a daily basis. So you can use the daily rate to see how much your balance is collecting in interest each day, including your purchases, balance transfers and cash advances. Most transactions, aside from cash advances, usually don't start accruing interest until after the statement period ends, though.
You can expect these details only if you use a rewards credit card or frequent flyer credit card. If you do, your statement should inform you of points earned during the statement period, the total number of points in your account, and points redeemed during this period.
"Scams are increasingly common and sophisticated, often using phishing emails and fake websites to steal personal information. When you spot an unrecognised transaction on your credit card statement, first double-check the details and contact the merchant if necessary. If the transaction is still unrecognised, report it to your card issuer immediately and dispute the charge. To prevent such incidents, secure your card information, use strong passwords, enable transaction alerts, and only provide card details to trusted websites. Regularly reviewing your credit card statements helps catch any discrepancies early and maintain financial security."
While your credit card statement should usually be accurate, there are some instances where you might spot an error. This could be a fraudulent transaction or a mistake from a merchant.
If you do spot an error on your credit card statement, contact your card provider to report and resolve the issue.
Luckily, it's pretty easy to dispute a card transaction and request a chargeback.
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Hi, My Visa CC statement just arrived by post yet my online closing balance shows a lot less, which one should I pay?
Cheers, John
Hi John, thanks for your inquiry!
Your online statement will generally be the most accurate/ updated record and more reliable to pay to. It may be useful to check the payment records on the postal record and compare that to the online statement. There is a possibility that your credit card has had some pending or new transactions between the time your postal statement was mailed and when you have received it.
Cheers,
Jonathan
How can I know my credit card statement?
Hi Jaswant.
You will receive a statement a month after opening the account. If you want to keep track of purchases before a statement is sent out to you in the mail. You can check and manage your account online through your lender’s online banking facility.
Thanks for your question.
Do the things you purchase end up on your credit card statement?
Hi Christopher. Thanks for your question. Your credit card statement will show you all your transactions for the month. This includes purchases and cash advances. Statements come in the mail but you elect to receive them electronically. Jacob.
Is the opening balance the one you pay?
HI Marsha. Thanks for your question. You will need to pay all balances eventually if you want to get out of debt. But typically, the opening balance will have the card’s annual fee (if applicable) and any transactions you’ve made in the first month. You will need to make at least the minimum monthly repayment to stop your account from going in to arrears. Jacob.