You receive a credit card bill at the end of your billing cycle, listing all the purchases that were made with that credit card during that period, as well as any balance carried over from the previous statement.
A credit card statement includes the following information:
â?¢ Previous balance: the amount carried over from the previous credit card statement.
â?¢ Purchases: the amount of credit used that month to make purchases.
â?¢ Cash advances: the amount of credit used that month by writing cheques against the credit card account, or making ATM withdrawals.
â?¢ Payments: the payments that you made to the sponsoring financial institution that month.
â?¢ Finance charge: the finance charge that is applied to any credit that exceeds the grace period or to any cash advances.
â?¢ New balance: the amount that you owe the financial institution as of now.
â?¢ Minimum payment: the minimum amount that you must pay.
The credit card statement basically details why your new balance differs form the balance shown on your statement in the previous month. The difference between the previous balance and the new balance results from any new purchases, cash advances, or finance charges, which increase your balance. The statement also shows the method of calculating finance charges.
When you receive your account statement, you should always scrutinize it for errors. There may be some mathematical error, a double charge for a purchase, or an incorrect amount on a purchase. Under consumer protection laws, you have the right to dispute possible errors. But in most cases, the bank will take prompt action and reverse the effects caused by the error in your account.
Author Steve Hoppsdate added 2009-08-25 15:05:02