How to Read your Credit Card Statement


So, you got your credit card statement in? Now you’re thinking, “I have no idea what all this means.” Here’s a simple breakdown of your credit card statement to better help you understand.




Quit just looking at the balance due each month and paying it. You should take the time to decode your credit card statement to know where your money is going and how it’s being distributed.


Oh, and if your only making the monthly payment, stop that! We’ll get into that below.


Decode your credit card statement

Each section is labeled to better help you find the meaning below. Just match the letter above to the letter below and you will find a simple, and brief description of each section of your credit card statement.

A- This is your previous balance, also known as the balance from your last statement that you didn’t pay off. If you pay off your balance each month, this number should be 0.

B- (Payments) This represents the last payments received. (Other credits) Credits towards your account, such as a reimbursement. 

C- (Transactions) This is the total amount accumulated since the last statement. 

D- (Cash Advances) If you took out cash on your credit card, it will show ups here.

E- (Fees) This could be a cash advance fee or a late fee. Each credit card company charges fees for different items. For example; an annual fee, going over your credit allowance, or a returned check.

F- (Interest Charged) If you haven’t been paying off your total balances each month you will see the total amount of interest you were charged here.

G- (New Balance) This is the grand total of A through F




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H- (Credit Limit) This is the total amount of credit you were approved for.

I- (Available Credit) This is the total amount of credit you have available H-G= Available credit

J- (Cash advance credit limit) Total amount of cash you allowed to take out on your credit card

K-(Available credit for cash advances)This is the amount you have available to use towards a cash advance J-D= Available credit for cash advances.

L-(Rewards Balance) NOTE: Not all credit cards have a rewards program. This is your current balance of rewards (example: miles) You will find your previous balance and the amount you earned this statement period here. Also notated here are the amount of rewards you redeemed for the statement period.

M-(Interest Charge Calculation) This shows your Annual Percentage Rate, also known as your APR. It also shows your current balance that is subject to being charged interest, and the total amount that was charged in interest.

N- (Payment Due Date) The day your payment is due. Be sure not to go past this date, or you could be charged a late fee depending on your credit company.

O- (New Balance) This is the total balance of the amount shown on G. (Minimum Payment Due) This is the minimum amount due to for your statement period. If the minimum payment is not received by the due date you risk being charged a late fee.

P- (Late Payment Warning) This is letting you know that if you do not pay the minimum amount due by the due date you could incur a late fee.

Q- (Minimum Payment Warning) This notates that if you only make the minimum payment you will be paying interest, which means you will be paying more overall. It will also take longer to pay off your balance by only making the minimum payment due.

R- Example of only making the minimum payment each month. If you only pay the minimum due you will take an estimated 7 years to pay off the balance at almost double the amount. On the other hand, if you pay more than the minimum due you will be paying much less and have it paid off in less time.


This covers the top information to help you read your credit card statement. Remember, all credit cards may have different terminology as well as rewards, APR, and more.


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