What Shows Up on a Credit Card Statement?

A credit card statement serves as a monthly record of all activity on a credit card account, provided by the issuer. It offers a clear overview of spending, payments, and account standing, helping cardholders manage finances and identify discrepancies or unauthorized transactions.

Account Summary

The account summary section provides a high-level financial snapshot of the billing cycle. It begins with the “Previous Balance,” the total amount owed at the close of the prior billing cycle.

Payments and credits made during the billing period are then subtracted, reducing the overall balance. New purchases, cash advances, and balance transfers are added as debits. The summary also itemizes any interest charged and various fees applied during the cycle, such as late payment fees or annual fees.

These additions and subtractions lead to the “New Balance,” the total amount currently owed. The statement also indicates the “Minimum Payment Due,” the lowest amount required to be paid by the “Payment Due Date” to avoid late fees and maintain good standing. The account summary displays the “Credit Limit,” the maximum amount that can be borrowed, and the “Available Credit,” the remaining credit line that can be used.

Transaction History

The transaction history section offers a detailed breakdown of all activities that occurred on the credit card during the billing cycle. This comprehensive list organizes transactions by date, providing a chronological record of account usage.

For each entry, the statement specifies the date of the transaction, the merchant involved, and the type of transaction. Transaction types can include purchases, returns or credits, payments made to the account, cash advances, and balance transfers. Each entry also clearly states the amount of the transaction.

A distinction exists between “pending” and “posted” transactions; pending transactions are authorized but not yet fully processed, while posted transactions have been finalized. Reviewing this section helps cardholders track their spending habits, reconcile their own records, and identify any unfamiliar or erroneous charges.

Interest Charges and Fees

Credit card statements provide a clear accounting of all interest charges and fees applied to the account during the billing cycle. Interest charges are detailed, showing the Annual Percentage Rate (APR) applied to different types of balances, such as purchases, cash advances, or balance transfers.

Interest on purchases can often be avoided if the full statement balance is paid by the due date, thanks to an interest-free grace period, which is usually at least 21 days from the end of the billing cycle. However, cash advances and balance transfers typically begin accruing interest immediately without a grace period.

Common fees itemized on a statement include late payment fees, which are incurred if the minimum payment is not received by the due date. The typical late fee is around $32 for an initial occurrence, with subsequent fees potentially higher. Annual fees, charged by some issuers for card membership, are also listed.

Cash advance fees, usually 3% to 5% of the advance amount or a minimum of $10, are applied when cash is withdrawn using the card. Foreign transaction fees, generally ranging from 1% to 3% of the purchase amount, apply to transactions made outside the United States or in foreign currency.

Over-limit fees may be charged if the account balance exceeds the credit limit, though federal law limits this fee to no more than the amount by which the limit was exceeded, and cardholders must typically opt-in to allow such transactions. Other potential fees include balance transfer fees, often 3% to 5% of the transferred amount, and returned payment fees.

Important Information and Disclosures

Beyond the financial figures, credit card statements include important information and regulatory disclosures. This part of the statement provides contact details for customer service, allowing cardholders to easily reach their issuer for inquiries or assistance.

Fraud reporting numbers are also prominently displayed, enabling quick action if unauthorized activity is suspected on the account. Regulatory disclosures, mandated to protect consumers, often include warnings about the consequences of making only minimum payments, such as increased interest costs and longer payoff times.

Information about credit counseling services may also be provided. Additionally, these sections can contain updates regarding changes to account terms and conditions, as well as details about rewards programs, including current points balances or promotional offers.