Read and Understand Your Credit Card Statement

Have you ever looked at your credit card statement and ended up just scratching your caput in frustration? Well fall in the club! But don’t take any comfortableness in the fact that you have got plenty of company, because deficiency of knowledge can cost you….right on your credit report, and once there can remain with you a while.

Adding to the challenge is that almost every creditor’s statement is slightly different, varying in formatting and charge rhythm and interest calculations. You first privation to check what you purchased and what you borrowed, so do certain you salvage all your gross to do certain you weren’t charged for something you didn’t bargain or were double billed. Immediately difference any disagreements via phone and in writing.

Next you’ll desire to verify the interest rates being applied for each type of purchase. Remember, cash advances almost always carry a higher interest than normal purchases and interest usually accrues from the day of the month you received the money. Also, if you have got any balance transfers with introductory interest rates, verify that it is correctly noted and hasn’t been increased prematurely.

Review how your interest is calculated (this information is usually on the dorsum of your statement) and do certain that the right rate have been used for each category. On purchases, most cards take your average day-to-day balance over the charge rhythm and watershed it by one-twelfth of your annual percentage rate (APR).

Lastly, but maybe most importantly, do certain you direct your payment in well before the owed date. In order to have got your payment credited on clip to avoid a late fee, it must be posted by the owed day of the month shown on the statement. Therefore, if paying by mail, it is advisable to mail your payment at least a hebdomad in advance. For those whose cash flow doesn’t allow an early remittance, paying by phone or on-line might be a good alternative.