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My Credit Card Statement Fees and Financial Basics

By Edited Nov 13, 2013 0 0

Monthly credit card statement helps the individual in knowing what charges and other fees have been levied on the account. Also, having knowledge of credit basics will help the customer make purchases wisely. The credit card statement also contains a lot of information and reading through it can help too.

What is Annual Percentage Rate (APR)?

Annual percentage rate is also known as APR. The credit card company makes money when they loan the required amount for purchase of an item. If the item stays on the card for 12 months the customer needs to pay an extra amount for that item and APR decides the monthly charge. If the card statement shows a high percentage then the charges will be higher. Most of the card statements will state Daily Periodic Rate and APR.

Minimum Payment Due

Usually Company fixes minimum payment to the account balance. When you have low account balance then your minimum payment will be lower. The company will also return any non-payment or late payment to the credit bureaus. So the consumer needs to realize that if he pays only minimum payment which is less than the total of other charges on the account he will get more debts without making any purchases.

New Balance

A new balance on the card statement tells how much money the customer owes and this is decided by the preceding month's balance minus the payments made on the account prior to the statement was printed plus any new charges that have been made into the account. The New charges are finance charges, fees, purchases and overages. Every month the customer should make sure that all numbers in the card statement are right. If illicit charges have been made then the customer should make a call to the company instantly because the company can take time to resolve these charges.

Finance Charges

A finance charge is also known as interest and this money is paid by the customer to the Credit Card Company for the credit amount loaned by the bank card. The charge is determined on monthly credit card statement by the account balance and APR. A low APR and low account balance will help the finance charge to stay low.

Grace Period

Credit cards Company will give grace period for payment of charges and during this period the bank will charge interest on the item. The grace period will be 20 days or 30 days for some cards. If a person pays charges prior to the grace period then no finance charges will be applicable and there will be no grace period for a cash advance.

Credit Card Fees

Nearly all companies have different fee structures for each credit card and charges will depend on the customer credit history and the type of card. The annual exposé and monthly statement would tell the customer what these charges are. The charges can be raised at any time when payment is made late.


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