Credit card statements are great to look at for any reason. They show the credit card holder's usage throughout the year, month by month, and year by year. For those who may not be aware of it, statement credits also show the welcome bonuses that cardholders receive throughout their billing cycle.
As mentioned above, statements are great to see for any reason. However, one of the best reasons to receive a statement credit is from credit card issuers. What is the suggested reading for this, you may wonder. Here is a list of the top five statements to look out for when you receive a statement credit from your credit card issuer.
The very first thing that you will want to note is the amount of your outstanding balance. If you have a lot of money tied up in cards and other high interest revolving balances, this will be a big one. You may want to send a letter to your credit card issuer or a call them to find out how much your outstanding balance is. You can usually get this information on your statement credit by visiting the credit card company's website. Once you have this information, you should then calculate your new monthly payment amount and compare it with what you were previously paying.
If you do not have too much money tied up in cards, but you still like to use them, the second item on your statement credit will be your annual fee. Many people do not realize that once they have an annual fee, they are required to pay a portion of it back each year. A lot of people only make minimum payments, which means that they only pay the smallest amount per year, but they pay tons of interest. For this reason, it is important to note the annual fee on your statement credit.
Last but not least, you need to look at your spending habits to see how much you spend each month on various cards. It is important to note that you can only earn statement credits each month for purchases you make using those cards. For example, if you go to the store to buy a new pair of running shoes, you can only earn credit for the amount of money you spend. If you use your cards for all of your shopping, then you cannot earn any crediting at all. Therefore, it is always a good idea to sit down and plan out how much you will be spending on different cards throughout the course of the year.
Remember that these are just a few things to consider when it comes to your statements. As with anything else, it is important to understand how to manage your statements so that you do not end up accumulating large amounts of debt. In order to earn more statement credits, you will need to plan out how much you can afford to spend each month. There are many free tools available online that you can use to figure out your average payment and interest rate. Once you have figured this out, you should then take it one step further and consult with a professional credit counselor so that they can help you in developing a more efficient way to manage your finances.
How to Read Your Credit Card Statement RamseySolutions | credit card statement credit
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