Description: The information below is about costco-citi-card-login in which the author shows you how to correctly understand the information on your credit card statement especially for beginners. This will also benefit the people who have experience on this.
Today I’m showing you how to properly read and understand your credit card statement. This will be useful for beginners but some people have had credit cards for a while. There may be some terms and some information that you’re not so familiar with and could clear up a few misunderstandings.
I have my credit card statement from Chase and this is for the Chase Freedom Card. It’s the first credit card I ever got. I’m going to draw your attention to the blue box at the top. Because that is probably the most important thing to look at.
First of all obviously I’ve blurred out any account numbers and personal information. But I’ve still left as much information as I can. So we can illustrate a few points.
First we have payment due date and what that means is that is the date that you must pay either the minimum payment if you want to avoid a late minimum payment fee or the total balance of the card. and that’s what chase lists as new balance listed on the statement.
If you want to avoid paying interest you must pay the new balance. Obviously I’ve already mentioned new balance that’s the second term. What that means is the balance on the card as of the statement date and the amount of money that I owe.
It is $79.76 and that is the sum of money that gets reported to the credit bureau on your closing date of your credit statement. We can go over to Credit Karma. This is my chase card, my Chase Freedom that’s reporting to Credit Karma.
The balance is $79 as reported on the fourteenth and the closing date for this statement was the 13th. Whatever my account is and whatever my balance is on the 13th, the chase will report to the credit bureau om the 14th.
That will be posted as New Balance on my statement. If you want to keep your credit utilization low which is good for your credit score, pay attention to what your new balances are. If they’re too high you may want to in the future start paying off some of your balance before the statement closing date.
Your new balance on your statement is low. Next we have minimum payment of $25. There’s normally a minimum amount for minimum payment which with this particular card is $25. Minimum payment can get bigger as a percentage depending on how much money you owe in your balance.
Because my balance is so low. It’s $25 and that’s the amount I will need to pay by the due date which is the 10th in order to not be charged a late payment fee of $37. In this section it says $37 is the late payment fee.
That’s this blue box dealt with. I hope that was clear. Let’s go down to account summary. We’ll go through and explain some of these terms. Previous balance was the figure that would be listed in new balance on my previous statement from the month before.
We go $311.27, the exact same amount. For payments and credits there’s a minus figure. Because that is the amount of money that I have paid off on this card. My previous balance was 311.27. The amount of money I have paid off is more than that I’ve paid off all of my previous balance.
In addition to that I have paid off more money of the next month’s balance in advance before the closing date. My utilization that is reported to the credit bureau is lower. The next definition is purchases.
I made four hundred and forty-five dollars worth of purchases. I’ve paid off roughly half of that before the closing date. Next is cash advances which shows zero dollars. Because I have not used my credit card for cash advances.
I recommend not using a credit card for cash advances if you don’t know what that is. That’s when you use a credit card like a ATM card and you take it to an ATM machine and you withdraw cash. The reason is that there is normally a fee in cash advances.
We’re looking at the chase terms and conditions for the the freedom card. First of all we have cash advance APR. It’s higher than the regular APR 26.24% as opposed to this variable rate of 16 to 24.99.
Normally cash advances charge interest from the day you make the cash advance from the day you withdraw the cash. There is a fee for cash advances either ten dollars or 5% of the amount of each transaction.
I want to get $10 to buy halal food on the street. You get $10 out of an ATM and you get charged ten dollars for the transaction. That is ridiculous. You end up paying interest. Obviously if you use the full amount of 700 you’d be paying $35 fee and you’ll be paying interest. So cash advances on credit cards are terrible. Never do it. That should always show zero.
I haven’t done any balance transfers. That’s when you have a high bounce on another card you transfer over to this card. Maybe because there’s a lower interest rate on this card. I haven’t done that at all.
We don’t have fees charged. I haven’t paid any fee. Because I haven’t been late on any payments or had any foreign transactions. Interest charged is zero. This is a good turn. That’s something you should pay attention to. Because this is the one where you can see whether you’re paying interest in addition to the actual money you’ve spent that you’re paid off.
We have new balance again, seventy nine point seven six dollars. That’s the amount. That was reported to the bureau. Pay attention to this next one. This is an important date to remember, one of two important dates to remember that had to do with credit-card statements.
Opening closing date is the February 14th. That is the period for which this statement is showing payments and stuff. The closing date is March 13th. Whatever your balance is on the closing date, that is set. That is how much you owe and that is what will get reported to the credit bureau.
I remember one time I was talking to a chase banker in Chase. He said to me because at the time the only card I had was the freedom and he had my freedom card up on my account up on his screen. He said to me we report to the credit bureau on the 13th. Whatever your balance is on the 13th we report it to the credit bureau.
I misunderstood him. I thought he meant it was for all Chase accounts. It was for my freedom card. The closing date is a date you want to remember because that is the date your balance is getting reported. If your balance is too high and you’re afraid to have effect on your credit score, pay off some of your balance before in my case the 13th whatever your closing debt is.
Next we have credit limit on this card freedom. It’s $3,500. That’s a low credit limit on my cards. But I haven’t bothered to try and get it increased. I don’t buy plane tickets or anything expensive with this card. Available credit should be easy to understand.
It’s obviously your credit limit and then minus the amount of money you owe on your card at the new balance. It seems that Chase rounds it to the nearest dollar.
We have cash access line. This is your access line of cash for cash advances. Don’t think that your cash advance line is going to be same as your credit limit line. It’s not. It’s usually lower and usually much lower.
The next one is available for cash. If I taken out $100 from a ATM that would most probably be 600. Because I used $100 of the of the line.
Next we have two more little terms. One term is past due amount. This is important. It could be a little bit misleading. What past due means is that this will be the sum of minimum payments you have missed, money that you have to pay alright by the due date.
It seems not that if you have a balance of five hundred dollars you pay two hundred and then three hundred dollars goes past the due date and you start paying interest on it. That will not show up. If you have keeper balance and it rolls over the next month, that will not show up.
Don’t think that as long as this says zero you’re not paying any interest.That is not the case. You should worry if you have any figure apart from zero in your past year amount section. We have balance over the credit limit and this is also a section that you you should worry and you should do something about it if you have any other figure apart from zero in that section.
We’ve got chased freedom ultimate rewards activity. It tells you how many points you’ve earned and you’ve got. You can see the bonus categories as well. We have account activity.
If your payments and credits figures at the top have minus signs next to them, that is money I’ve paid in to the credit card account. It’s opposite from a debit card or bank account. If you pay money into a bank account it’ll be positive. But if you pay money into it on a credit card, it comes up with a minus because it’s deducting that from the overall amount.
Below we have purchases and these are positive amounts that are being added to the debt. It’s the opposite of over bank account. We can go down. Some of this stuff is all terms and conditions and stuff.
But another pay in the last page of chases statements is mostly the case with other banks as well. The last page will tell you your annual percentage rate and your interest rate. Because the interest rate is variable on the freedom card. It’s between sixteen point two four and two four point nine nine.
They’re charging me twenty four point two four if I paid interest on this card. I didn’t get charged anything because I didn’t pay interest. I paid it all back. But if I was to pay interest it would be that amount. They’re charging me close to the maximum amount. The maximum amount they can charge is twenty four point nine nine.
In my American Express statement the the interest rate they’re charging me is a bit lower, nineteen point four nine. There is something to remember. If you want to find out your APR rate, your annual percentage rate, how much interest you having charged, you look at the last page. Most credit card statements are on the last page.
That is a summary of how to read your statement. You need to pay attention to the two dates from your statement, our due date and a closing date. Due date is when you absolutely need to make your minimum payment or your full payment. Remember that.
Closing date is when you need to bring down your total balance if you are trying to get low utilization and to get a better credit score. So bring down your balance and pay some off before the closing date if you want to have a good effect in your credit score.
This is how to read a credit card statement, absolutely essential information for beginners. I hope that the people who are a bit more experienced got something out of it too.