Demystifying Credit Card Statements: How to Read Your Credit Card Statement
Reading your credit card statements is about as exciting as reading the directions for assembling a piece of IKEA furniture. No one enjoys it and many people find it frustrating, but it must be done. So, why go over your credit card statements? It gives you the chance to review your spending, check your balance and monthly payments, look for errors, remind yourself of a card’s APR (annual percentage rate) and more.
What Is a Credit Card Statement?
Simply put, a credit card statement — in either paper or electronic form — summarizes your credit card activity during a certain billing cycle. For example, it shows payments, purchases, balances, fees and interest charges for your account during the billing cycle.
Billing cycle refers to the time, often 28 to 31 days, between two dates. For example, a cycle might stretch from the 25th day of one month to the 25th day of the next month.
“When a billing cycle ends, credit card issuers add up all the transactions that occurred during the billing period and carry over any additional balances from the previous billing cycle to provide a credit card statement,” according to credit card issuer Capital One.
Frequently, credit card issuers report a card’s balance to the three major credit bureaus — Equifax, Experian and TransUnion — following the close of each billing cycle.
Key Terms and Parts of a Credit Card Statement
Bruce McClary, senior vice president of communications at the National Foundation for Credit Counseling, said it’s critical when reviewing a credit card statement to look at how much you owe, how much the interest charges and fees are costing you, and whether any errors have shown up. Errors might include unauthorized charges or unapplied payments.
“If you see things you don't understand, take steps to learn what they mean. Ask your creditor and research unfamiliar terminology online,” McClary said. “Know as much as you can about what you see on your statement because it has a direct impact on your money and your financial well-being.”
A credit card statement contains various terms and parts. What follows is an explanation of credit card statements, based on a sample statement. Note that not every credit card statement looks the same, but all statements generally contain the same kinds of information.
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Card Number
The last four digits of your account number typically appear on the statement.
Billing Cycle
This indicates the dates of the billing cycle, such as 03/25/2025 - 04/24/2025.
Account Summary
This section of your credit card statement shouldn’t be overlooked. Among the items you generally find here are:
Previous balance — This is the balance that was carried over from the previous billing cycle.
Payments and credits — This part shows the dollar amount of payments and credits (such as refunds).
Purchases — This is the dollar amount of transactions you added to your account during the billing cycle.
Balance transfers — This is the amount of any balances you switched from another card to this card to ideally gain a lower APR.
Cash advances — This is the amount of money you withdrew as a loan, often at a higher APR than you’re charged for purchases.
Fees charged — This is the amount of any fees you were charged, such as a fee for making a late payment.
Interest charged — This shows the amount of interest you accumulated during the billing cycle.
Credit line — This is the maximum balance, such as $5,000, that you’re permitted to have on the card.
Credit line available — This subtracts your balance (such as $1,500) from the credit line (such as $5,000) to indicate how much spending room remains ($3,500).
Cash advance credit line — This shows the amount of your total credit line that’s available for cash advances. The cash advance credit line is normally lower than your overall credit line. For example, your total credit line may be $5,000, but your cash advance limit is $1,000.
Cash advance credit line available — This subtracts the current balance for cash advances from the cash advance credit line.
Payment Information
In this section, you’ll probably see:
Your new balance.
The minimum payment you must make before the due date.
The payment due date.
A warning about the late fee you could be charged if your payment isn’t made on time.
The amount that’ll be withdrawn for your bank account to make the next payment if you’ve signed up for autopay, and when that withdrawal is scheduled to be made.
Credit Score
On statements, many card issuers show your credit score as of a certain date.
Payment Coupon
This is a coupon you’d detach from the statement if you’re sending a check by mail to cover your payment.
Transactions
The section itemizes all transactions during the billing cycle, such as purchases, payments and cash back bonuses.
Rewards
This section details any rewards you earned or redeemed during the billing cycle, along with your rewards balance.
Fees and Interest
This portion of your statement shows:
Total fees charged during the billing cycle
Total interest charged during the billing cycle
Year-to-date fees charged
Year-to-date interest charged
Interest Charges
This section includes:
APRs, expressed as percentages, for purchases, promotional purchases, expired promotional purchases and cash advances. Each of these APRs is likely to be different. For example, a purchase APR might be 21.99%, a promotional APR might be 0% and a cash advance APR might be 28.99%.
The expiration date for a low promotional APR.
The balance subject to interest charges in each APR category.
The dollar amount of interest charges in each APR category.
The Schumer Box
As credit card issuer Discover explains, all card issuers must disclose essential details on credit card agreements in what’s known as the “Schumer box.” These agreements are separate from credit card statements. Information found in an easy-to-read table, or box, on a credit card agreement include a card’s APRs, the length of the payment grace period before a late fee is charged, the card fees are, and the way that the issuer calculates credit card balances.
Frequently Asked Questions
How Long Should You Keep Your Credit Card Statements?
Generally, you should keep a credit card statement for at least 60 days after it’s been issued in case you need to dispute an error. However, you might want to hang onto credit card statements longer (a year or more) if you need them for tax-filing purposes.
When Do Credit Card Statements Come Out?
Credit card companies issue statements each month, either by mail or electronically. Cardholders generally receive them shortly after the end of each billing cycle.
What Is the Difference Between a Credit Card Balance and a Credit Card Statement?
Your credit card balance is what you owe a card issuer at any given time, not just at the end of a billing cycle. A credit card statement summarizes card activity during a billing cycle and includes the balance for your account at the end of the billing cycle.
