So how does one comprehend a credit card statement? For those of you who are not quite sure, here is how one understands it. Your standard credit card statement is your guide to how you have been using your credit card. In it, you will receive information about your account since your previous credit card statement, what you still owe to the credit card issuer (the outstanding balance), the interest (if any) owing on the amount you’ve borrowed and the minimum repayment you will need to make for that month. Your credit card statement will also provide details of charges made on your transactions such as cash withdrawals or balance transfers. It also gives you information about charges made on other services such as withdrawing money on your credit card when abroad.

First and foremost, as soon as you receive your credit card statement, remember to always check that your name, address and account number are correct. Then check the credit card statement for all transactions made by you in the past month. A number of people don’t do this and sometimes land up paying interest on goods they haven’t even purchased! It would be wise to retain all your current receipts and cross check the amounts as soon as the credit card statement drops through your door.

Also remember to check your credit limit against your outstanding balance to ensure you are not spending beyond your set credit limit. If you are, then the credit card issuer will penalize you with a fine. Furthermore, make note of the date when the repayment is due in order to avoid a penalty of a late payment fee.

The credit card statement will inform you of the minimum amount of the repayment that is to be made by you for that month, as well. And do allow a few days (check your credit card statement for the exact number of days required) for your repayment. This depends how you make your payment whether at a bank or by post, internet or phone, to reach your credit card issuer.

Another way of repaying on time is by setting up a direct debit with your bank for the minimum amount due to your credit card issuer, each month. This is a foolproof way of ensuring you don’t miss a repayment and are not slapped with any late payment fees in the bargain.

And lastly, if you have changed your name, address or telephone number then remember to keep your credit card issuer informed about the change so that your details can be updated.