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A credit card statement is a monthly summary of your account activity, including your transactions, balance, payments, interest charges and due date. Knowing how to read your credit card statement can help you get a better understanding of what's happening with your account as well as how to avoid fees, spot fraud and better manage your credit.
Here's what a credit card statement includes, how to read each section of your credit card statement and what the information means for your finances.
What Is a Credit Card Statement?
Your credit card statement shows activity on your account during the most recent billing cycle, plus any upcoming changes and other important information. It will also notify you of your payment due date and the minimum payment due. You'll typically receive your credit card statement by email or mail; you can also view it online or in your credit card issuer's app.
The exact layout may vary depending on your credit card issuer, but most statements follow a similar format. When reviewing your credit card statement, focus on three key areas: your statement balance, payment due date and transactions—but don't forget to check important announcements that could affect your account. Paying attention to this information can help you avoid interest charges and missed payments and quickly spot errors or fraud.
Learn more: How to Pay a Credit Card Bill
How to Read Your Credit Card Statement
Here's how to read your credit card statement, section by section.
Account Information
The top of the statement typically includes your name, address, the last four digits of your account number and the date range or end date of the billing cycle.
Summary of Account Activity
Sometimes labeled activity summary or account summary, the summary of account activity is an overview of your account during the billing cycle. Here's what it includes and what the information means:
| Term | What It Means |
|---|---|
| Previous balance | Any balance from the previous billing cycle |
| Payments | Any payments you made during the billing cycle |
| Other credits | Any statement credits you received, including refunds and other credits applied to your account |
| Purchases | Total purchases made |
| Balance transfers | Any balances transferred from other accounts to the card |
| Cash advances | Total cash advances you withdrew |
| Fees charged | Any applicable fees, such as late payment, balance transfer and cash advance fees |
| Interest charged | Total interest added to your balance |
| New balance | Total of all transactions, plus any previous unpaid balance, interest and fees |
| Past due | Any payment from the previous statement that was not made by the due date |
In or near the summary of activity, you may also see your credit limit, your available credit as of the statement date, your statement closing date and the number of days in your billing cycle.
Payment Information
The payment information box spotlights three critical numbers:
- New balance: The total amount you must pay by the due date to avoid interest charges. Most credit cards offer a grace period, meaning you won't be charged interest if you pay your statement balance in full each month. Your statement balance may differ from the current balance, which includes transactions after the statement closing date.
- Minimum payment due: The minimum amount you must pay by the due date to keep your account in good standing.
- Payment due date: The date your payment is due. If you don't make at least your minimum payment by the due date, you may face a late fee or be charged a penalty interest rate. A payment that's 30 days or more overdue may also be reported to credit bureaus, which can damage your credit score.
Tip: If you pay only the minimum on your credit card, you'll start accruing interest on the balance, which can eventually snowball into unmanageable debt. You can avoid paying any interest by paying your statement balance in full each month.
Learn more: Reasons to Pay More Than the Minimum on Your Credit Card
Account Notifications
This section, sometimes called account messages or important messages, notifies you of any changes in your terms. For example, your card issuer might change your annual fee, late payment fee or interest rate if it gives you at least a 45-day notice. Credit cards also have variable interest rates that can increase without advance notice if the card's benchmark rate rises.
Notifications can also include ongoing information, such as whether you've enrolled in automatic payments and, if you have, the payment amount and date.
Transactions
The transactions section lists purchases, balance transfers, cash advances, payments and credits. Transaction details might include the date, amount and description. Authorized users' transactions may be listed separately.
Reviewing your transactions regularly can give you insights into your spending habits so you can manage your money better. For example, you might find recurring charges for services or subscriptions you could cancel to save money. Or, you might notice a rash of impulse purchases and realize you need to cut back.
Tip: Reduce your risk of credit card fraud by checking your statement regularly for unauthorized transactions. You can also set up account alerts to get notified of transactions as they occur.
Fees and Interest
These sections of your credit card statement cover:
- Fees: Any fees you were charged during this billing cycle, such as late fees, balance transfer fees or foreign transaction fees.
- Interest charged: Total interest you were charged during this billing cycle. This may also be broken out by category into purchases, cash advances and balance transfers.
- Totals year-to-date: Total fees and interest you were charged for the year to date.
- Interest charge calculation: Credit cards can have different annual percentage rates (APRs) for purchases, cash advances and balance transfers. This section lists your APR by balance type, the balance subject to interest that month and any interest charged.
Reviewing these sections can help you identify fees or charges you may be able to avoid, such as late fees or interest charges you could wipe out by paying your balance in full.
Learn more: How Does Credit Card Interest Work?
Rewards
If you have a rewards card, your statement typically states your total rewards balance year-to-date, as well as the rewards you earned and redeemed during the billing cycle. Some statements may also list rewards information next to each transaction in the transaction section.
How Long to Keep Credit Card Statements
If there were no fraudulent transactions and you don't need the credit card statement for tax purposes, you may not need to keep your statements.
- If there is a fraudulent transaction, hold on to the statement until the dispute is resolved.
- If you use the statement for tax purposes, such as documenting business purchases, the IRS recommends keeping it for three years from the date you filed the tax return.
You can access and download your previous credit card statements online, although how far back you can go varies by card issuer.
Frequently Asked Questions
What Is a Credit Card Statement Balance?
Your credit card statement balance, often shown as new balance on your statement, is the total you owe at the end of the billing cycle. It includes any previous unpaid balance from the last billing cycle, as well as fees, interest charges and transactions from the current billing cycle.
The statement balance often differs from the current balance, a running tally of how much you owe at the moment. Paying your statement balance in full avoids interest charges; you can also pay your current balance if you'd rather have no balance at all.
What Is the Closing Date of a Credit Card?
The closing date on a credit card is the day the billing cycle ends. A billing cycle is approximately one month long. Your credit card statement typically shows the closing date for that statement. It may also show the next statement's closing date and the number of days in your billing cycle.
Should I Pay My Credit Card Before I Get the Statement?
If you carry a balance on your credit card from one month to the next, paying your bill before you get the statement can lower the amount of interest you'll pay by reducing your balance. Because your statement balance is often what's reported to credit bureaus, making a payment before your statement closing date may help lower your reported balance and improve your credit utilization ratio, which could benefit your credit score. Credit utilization measures how much credit you're using compared to your credit limit. People with the highest credit scores tend to have utilization rates below 10%.
Monitor Your Credit Report
Understanding and reviewing your credit card statements is important, but it's only part of the financial picture. Regularly reviewing your credit report and credit score, which you can check for free with Experian, can provide insight into how your credit card account activity impacts your credit score over time.
For a convenient way to stay on top of your credit, consider signing up for free credit monitoring from Experian. You'll be able to track your FICO® Score☉ Θ and get alerts of changes to your credit report or credit usage that could signal fraud.