Guide to Understanding Your Credit Card Billing Statement

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Guide to Understanding Your Credit Card Billing Statement

It is legally required and approved to send your monthly credit card statement to you days before your minimum payment due date. Billing statements often comprise of some pages consisting of a good deal of information which are:

Guide to Understanding Your Credit Card Billing Statement

Your credit card statement will typically come in the mail, but if you’ve opted for online, or paperless billing statements), you’ll either receive an email statement or need to log on to your credit card issuer’s website to check your statement.

When you review your statement, you’ll find several different categories of information providing detail on a variety of account characteristics, described below.

Preceding purchasing balance

The preceding purchasing balance is the essential portion bill which consists of the current also the previous balance you’ve made in your billing cycle. The amount includes any of the previous outstanding bills that are left unpaid and apparently your current charges.

Balance transfer

It is possible to transfer debt from one card to the other which reflect your debt in the bill that has been transferred with some interest charges adding with the same.


It is again an important aspect of your credit card bill. This is a cost that is directly linked to the amount of credit you’ve taken with the card. This is similar to the interest you pay on taking loans.

Guide to Understanding Your Credit Card Billing Statement

Any failure in payment of interest gets carry forwarded to the next bill. Thus, any non-payment of interest charges in previous period might reflect in the presently drafted bill.

Cash advance charge

Cash advance charge is a cost implied on using your credit card to withdraw money from the ATM. This amount is displayed as a ‘cash advance’ charge will surely take your attention immediately for these generally have huge interest charges. Thus, one should try avoiding it unless undeniably necessary.

Guideline to make payments of your Credit Card Bill

As soon as  you have gotten your  credit card bill, Do ensure to make a complete payment of the amount to evade any special interest rates on the unpaid amount subsequent time.

Minimum Amount Due

The minimum amount due is a charge you have to pay in order to keep getting credits from your bank.

It is calculate Minimum amount due= Interest + 1% of total due balance

This payment of due amount will enable you avoid any payments of extra charges that will be applied to your next bill.

It  is recommended to pay the maximum amount due on time unless there is urgency.


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