A credit card statement is simply a statement of how you have used your card over a billing cycle. When you first get a credit card it can seem like a great idea, but it can soon become a burden. Most people who get a credit card don't even know where to begin when it comes to managing their credit cards. Credit card statements often contain very complicated numbers, terms and conditions that really play a big part in the calculation of a card holder's total credit card balance.
If you were to try and calculate all of this yourself, it would be impossible for you to know what you owed to other creditors and whether or not you have paid them in full. It can also be extremely difficult to keep up with every monthly bill and knowing how to read your credit card statement will only make your task that much more difficult. The first step you need to take when you need to learn how to read your credit card statement is to understand the balance you owe each month. This includes any outstanding loans, credit card limits, any deposits you have made to your account as well as any cash you may have in savings or checking.
Each month, your account summary will list the date that your last bill was paid and the amount of money that you owe on that account. The next step you want to take when learning how to read your card statement is to check the balance due. If the balance due is more than the balance you currently have in your checking or savings account, then you may want to check with your card issuer. Often times credit cards issued in collections will still show your balance due to collection agencies as if you still had a good banking relationship with the company.
Next, you will need to know the bank from which you made your last purchase. You will need to look at the debit section of the statement. In many cases, it is easy to determine which bank issued the card. Look for the account number and check the transaction history. If you see any previous balances listed that are in your current account, then you will want to look further into the transactions that caused this to occur.
A good method for learning about your card statement is to look at all of the transactions for one year. Look over the entire billing cycle to see what charges occurred and how much money was spent. Look at the average daily and weekly transaction amounts and break them down per day or week. You will quickly see which expenses incurred a lot of money over a certain period of time and which ones were little or not spent at all.
Lastly, once you have learned how to read your card statement, look at the minimum payment column. This will help you understand how much money was outstanding when the minimum monthly payment was due. With most cash advances, the minimum payment is due at the beginning of the month and must be paid before the card is closed. However, some cash advances will allow you to make an additional payment the night before the billing cycle closes if you so desire. To learn more about using cash advances to make the most of your purchasing power, register for a free mortgage guidebook.
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