Credit Card Statement

What is a credit card statement?

A credit card statement is a monthly report from your credit card issuer that shows your account activity, including purchases, payments, fees, and interest charges. It tells you how much you owe and when you need to pay.

Key points

• A credit card statement helps you track spending and avoid fees.
• Paying your full balance avoids interest charges.

How to read a credit card statement

Understanding your credit card statement is important to managing your finances. Here are the key sections to review:

• Statement Balance – The balance at the end of the billing cycle.
• Minimum Payment – The smallest amount you can pay to avoid late fees.
• Payment Due Date – The date to pay before late fees apply.
• Transaction History – A list of purchases, cash advances, fees, and payments.
• Interest Charges – Interest is applied to your balance if you carry debt.
• Credit Limit & Available Credit – Your total credit limit and how much is available.

Falling behind on your statement balance payments and allowing your outstanding balance to creep up due to interest is one of the quickest ways to get into financial trouble. Review your statement monthly to catch errors, spot fraud, and plan your payments.

Credit card statement example

You can find your credit card statement online or in person if they are mailed to you. Your statement will look similar to the example here:

Account Summary

• Previous Balance: $1,200
• New Charges: $500
• Payments Made: -$600
• Statement Balance: $1,100
• Minimum Payment Due: $50
• Payment Due Date: March 15, 2025

Transaction History

Scanning your statement helps you track spending and ensure all charges are correct. If a charge is incorrect or you suspect it may be fraud, it is important to take immediate action. Either contact the merchant or contact your bank to figure out the issue.

What is a statement balance on a credit card?

The statement balance is the balance at the end of the billing cycle. It includes all purchases, fees, and interest for that period. You have two options when the end of the billing cycle comes around: either pay the full statement balance or the minimum balance. (Technically, you have an additional option of not paying, but that will result in late fees, an impact on your credit score, and a penalty APR.)

• Pay the full statement balance. If you pay the entire balance by the due date, you won’t get interest and will be squared away.
• Pay the minimum balance. If you pay the minimum balance, you’ll stay in good standing but get interest on the remaining amount. This is also known as carrying a balance. If you want to avoid paying extra interest and increasing your debt, it’s best to pay off your statement balance in full each month.

A credit card statement is a financial tool to track spending on your allotted credit limit. Reviewing your statement regularly and paying your statement balance on time will help you avoid unnecessary fees and keep your credit in good shape.