How to read credit card bills

Whether you have a big limit or a small one, whether you have multiple credit cards or just one, you still get a statement of account every month. The majority of the surveys have the same structure and present the information in the same way. On the other hand, all these statements have one thing in common: they are hard to read and understand, especially for a novice credit card holder.

Below you will find the parts of your statement that need the most attention in order to be a responsible credit card user.


Payment Information

Payment Information

This information is the first thing that appears on your statement and it is often divided into three different parts containing three important numbers.

  • The current balance is the balance of your credit card at the end of your payment period. This is the total amount you owe to the credit company, inclusive of fees and interest.
  • Minimum Payment: This is the minimum amount of money you must pay for the period indicated. Each credit card company calculates its own minimum payment amount and also depends on the balance on your credit card. Even if the minimum payment is a small amount, pay your bill in full to avoid future interest. In fact, if you opt for the minimum payment, you will need even more money the following month.
  • Date of payment: This is the date on which at least the minimum payment must be made.


Account Summary

The account summary takes the most space on your card statement. This is where you will find information about your current balance. It will also show you the expenses you made during the billing period. In addition, this part will include information about the limits of your credit and the amount available.


Information for delayed payments

credit account

You will find in this part of your statement all the information about the consequences of not paying your credit card on time, even if it is a minimum payment. Each credit card company has its own rules, but expect penalties and an increase in your interest rate.


Minimum payment

In this section you will find information on how long it will take to pay back the current amount only by making minimum payments. Also, you will find the amount you are going to pay in interest.

Your credit company will also offer you an estimate of how much money you have to set aside monthly if you want to pay off the debt in three years. This will be accompanied by an amount that will represent what you have managed to save in interest expense. If you have trouble paying your credit card, check this page to motivate you to work harder to pay back faster.


The interests

Information for delayed payments

The interest section is separated into different parts depending on the transactions you have made. Part will be for purchases, money transfers and cash advances. Each of these transactions has its own interest rates, which is why they are written separately.


Contact information

In short, this is the information regarding your credit card company in case you want to ask questions.


Reward Information

credit interest

If you have a credit card with a reward system, then expect to find a small statement of your total rewards point balance and bonus points earned during the current billing period.


Important information

On the back of your bill, you will find, written in small size, all the details concerning your credit card. This includes all policies of use, payment, loss, error, theft and privacy.


What to watch for

Reward Information

The monthly bill is filled with different information. On the other hand, some information is more useful to you daily and therefore you should pay them more attention.

  • Payment Information : The best way to use your credit card and check the “payment information” section and pay the “new balance” at the “deadline”. If you do it right, you will avoid interest rates and end up saving money.
  • Account Summary : This section will allow you to monitor all of your monthly transactions so you can track down an error and fix it before it’s too late.
  • Minimum Payment : This section provides you with the most important information, this information which will make you decide how much you will allocate to the payment of your card. Also pay attention to the part that tells you how long it will take you to fully refund the credit card by making minimum payments only. Use this information as a source of motivation to repay the credit faster.

Now that you have all the information you need, you can use your credit card responsibly and efficiently. By knowing which section to look for or to look for information, you make sure to make a wise use of your credit card.

If it becomes very difficult to make minimum payments on your cards, you may need to consider debt consolidation