How to Read the Account Statement of My Credit Card?

We could say that the statement is a summary of the movements made with my credit card .

These purchase operations are determined within a set deadline that is usually monthly, detailing the dates, type of transaction, amount thereof, associated expenses, insurance, commissions and interest rates, among others.

In a nutshell, it is a summary of the operations and costs associated with my credit card in a given period

 

What information does my credit card account contain?

What information does my credit card account contain?

Now, we are going to shred the contents of the statement . If each bank has a different format, the content is similar in all.

Customer and bank data

First of all we have to say that the account statement comes in the name of the cardholder with their personal data and plastic number, although it also includes all the movements made by the additional plastics, although they must appear separately.

In the upper part of the statement of account , the issuing bank and the type of credit card are listed, as well as a relevant piece of information that we must always keep in mind, the period covered by the transactions carried out and included, in addition to the cut-off date. .

 

Amounts to be paid and forms of payment

Amounts to be paid and forms of payment

Here, very important data is reflected. In the first place, the amounts that we have to pay and the modalities to do appear.

The term that is usually highlighted is the deadline to make the payment, a fundamental fact because after the established limit we will enter into a defaulted state in front of the bank and not only that interest will begin to run for this breach, but we will stain our credit history in case of continuing in this situation.

Now, pay attention because the juiciest data appear. Below we make a detail of the different alternatives and amounts to cancel the statement of my credit card otherwise.

  • Minimum Payment : First, banks usually distinguish strongly the amount of the minimum payment assigned to my credit card. The bank is interested in this alternative, because it refinances the debt at very high rates and keeps us captive for several years in this way, as the debt continues to increase.
  • Payment not to generate interest: it is an amount that suits us, but it is the highest. Means canceling my entire statement, without leaving debts that generate interest. In the amount “totalero”, the good cardholder is the one who pays each month.
  • Minimum payment + months without interest : a real headache. Pay only a small portion and also make purchases that mean a debt for several months that we may not be able to pay at term is not recommended. It is an alternative that we should discard but that exist in the account statements.

 

Types of interests and Total Annual Cost (CAT) that apply

Types of interests and Total Annual Cost (CAT) that apply

The account statement of the credit card includes the interest for the financing of the purchases and the current interest rates for the lack of payment of the same.

That is, they are expenses that involve having a plastic and that are linked to their use and associated obligations.

  • Ordinary interest rate : is the percentage assigned to financing
  • Moratorium interest rate : the percentage that is applied in case of “non-payment”
  • Promotional rate : some banks apply a fixed special rate
  • Total Annual Cost (CAT) : Is the final percentage that includes interest, commissions and other expenses

 

Balances and limits

Balances and limits

Credit cards have maximum amounts assigned according to the type of client and card. To do this, the bank describes in my account statement the previous balance and the limits I have available to make provisions in ATMs.

It also details the associated interest and VAT, as well as the discounts we have assigned to reach a total.

Here also the credit limit and the available limit must appear clearly.

The more purchases we have for months with or without interest, the limits are decreasing, because our purchasing capacity becomes smaller.

 

Keywords within a statement of account

Keywords within a statement of account

  • Deadline
  • Cutoff date
  • Current balance
  • Way to pay
  • Minimum payment
  • Full payment
  • Interest rate
  • Monthly payments without interest
  • Total Annual Cost

 

Where do I pay my credit card statement?

Where do I pay my credit card statement?

At the time of paying my statement, at present the banks have extended the option of places to cancel it.

There are several alternatives and you can choose the one that suits you best, but remember some credit cards when they are hired. The form of payment is stipulated in the contract.

  • Debit in bank account : Each month, the bank debits us from the account the amount established in the account statement. Remember to have enough balance so they can make the discount.
  • Cash at the window : You can go to the bank branch with the money and cancel the amount either in cash or check.
  • Banking correspondent : Stores, pharmacies, etc., that have agreements with banks allow payment in the boxes of your card.
  • Online : The websites of financial institutions allow online payments. For this you must have active service with username and password enabled.
  • By telephone : You must call the line available to each bank and select the credit card payment option. There they will ask you for information to authenticate your identity.