Reading Your Credit Card Statement

Your statement is the monthly summary of how you used your card. Knowing how to read it lets you control your spending, catch errors, and avoid paying unnecessary interest.

Key concepts

• Interest rate: the percentage charged on the unpaid balance.
• Credit line: the maximum limit the institution makes available to you.
• Cash advance: money you withdraw with the card; it usually carries higher fees and interest.
• Annual / maintenance fee: the cost of keeping your credit available.
• Statement (closing) date: the day the cycle closes and the bill is issued.
• Due date: the last day to pay without generating interest.

The minimum payment is not your friend

The statement shows a "minimum payment," but paying only that lets the rest accrue interest and can take years to pay off. Whenever you can, pay the full balance.

Review every charge

Compare the transactions with your actual purchases. If you see a charge you don't recognize, report it to your bank immediately to protect yourself against fraud.