By Julie Jaggernath and Garrett Johnson
Many people only glance at their credit card bill to see the total they owe, but the question of why should you check your credit card statement goes far beyond simply knowing your balance. Your statement provides a detailed record of every transaction, fee, and payment, giving you insight into your spending habits, and helping you stay on top of your finances. Developing the habit of reviewing your statement regularly can prevent surprises, reduce unnecessary fees, and help you make smarter financial decisions.
It’s also important to understand the emotional impact of credit card statements. Seeing a high balance can trigger what many call “balance shock,” a moment of disbelief when small purchases or recurring charges add up faster than expected. During transitional periods—like moving, separating/combining finances, or facing unexpected expenses—credit cards can be both a helpful tool and a source of stress. By taking a proactive approach, you can prevent credit from becoming a burden and keep your financial wellbeing intact.
Credit Card Statements Explained
Before diving into the action, it helps to have credit card statements explained in clear, practical terms. At the top of your statement, you’ll find the summary showing your current balance, minimum payment, due date, and available credit. This snapshot lets you quickly assess where you stand, but it’s just the starting point.
The transaction list is the most detailed part of your statement, showing every purchase, credit, fee, and payment made during the billing cycle. Carefully reviewing this list helps you spot errors or unrecognized charges, including any transactions from supplemental cardholders. Those are often listed under their own card number which gives you a chance to check in with that cardholder to confirm the accuracy of their charges.
If you find a charge you don’t recognize, contact your credit card company promptly to investigate or the credit card charge. Additionally, your statement includes details about interest rates for purchases, cash advances, and balance transfers, as well as any insurance or fees tied to your account. Understanding these numbers can guide your decisions about spending, payments, and whether certain services remain worthwhile.
The very end of your statement is typically reserved for cardholder notices from the credit card company. Be sure to read through the information so that if any changes will affect you, you can make an informed decision about your next steps.
Important Credit Card Terms to Know
Read the full article here
