How to read your credit card statement (and why you should!)

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.

10 key features on your credit card statement

Below we've outlined the major features of a credit card statement.

1. Statement period
2. Payment due date
3. Minimum amount due
4. Overdue amount
5. New charges
6. Payments/refunds
7. Closing balance
8. Transactions
9. Daily rate (see second image down the page)
10. Reward points (see second image down the page)

1. Statement period

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.

Learn more about how credit card interest charges work.

2. Payment due date

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.

• Note. If you're just struggling to repay that month, you can also request an extension. Most banks offer financial hardship assistance, so contact your card issuer directly to discuss your options.

3. Minimum amount due (or minimum payment)

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.

4. Overdue

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.

5. New charges

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).

6. Payments/Refunds

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.

7. Closing balance

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.

8. Transactions

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.

9. Daily rate

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.

10. Reward points

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.

Expert insight: What if I see unexpected charges on my card?

"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."

Angel Zhong

Professor, RMIT

How to manage errors on your credit card statement

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.

Frequently asked questions

• Can I save any money if I ask my card provider to stop sending me paper statements?

  Unfortunately, the answer to this is no. However, by doing so you can look forward to clutter-free space and you can also do your bit to save the environment. Most banks issue electronic credit card statements, so this might be an easier way to manage your statements.

• How often should I receive a credit card statement?

  Credit card providers in Australia issue statements on a monthly basis. Make sure you contact your bank if you haven't received your credit card statement around the time you usually would in the month.

• I made a purchase but noticed that I did not get any interest-free days. Why might that be?

  This might be because you have an outstanding balance in your account from the previous billing cycle. Bear in mind that you have to pay your account’s closing balance in full before each due date if you wish to take advantage of your card’s interest-free days.

• If I have an additional card linked to my credit card, do I receive a separate statement for the same?

  All transactions are listed within one statement. As the primary cardholder, you're liable for any transactions made with any additional cards. This is why it's important to check your statement and keep track of all transactions being made.

Written by

Rebecca Pike

Senior writer

Rebecca Pike is Finder's senior writer for money. She joined Finder after almost four years writing for business publications in the mortgage and finance industry, including three years as editor of Mortgage Professional Australia. She regularly appears as a money expert on programs like Sunrise and Today, as well as across radio and newspapers. She also holds ASIC-recognised certifications in Tier 1 Generic Knowledge and Tier 2 General Advice Deposit Products. See full bio

Rebecca's expertise

Rebecca has written 197 Finder guides across topics including:

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Co-written by

Richard Whitten

Editor

Richard Whitten is a money editor at Finder, and has been covering home loans, property and personal finance for 6+ years. He has written for Yahoo Finance, Money Magazine and Homely; and has appeared on various radio shows nationwide. He holds a Certificate IV in mortgage broking and finance (RG 206), a Tier 1 Generic Knowledge certification and a Tier 2 General Advice Deposit Products (RG 146) certification. See full bio

Richard's expertise

Richard has written 554 Finder guides across topics including:

• Home loans
• Property
• Personal finance
• Money-saving tips