Important reasons to check your Credit Card Statement

Most of us live very busy and stressful lives. When we receive our mail we can often identify our credit card statements without even opening the envelope. Some of us leave the credit card statement sitting in a pile of other papers, unopened, nevertheless checking it. Some people even toss it into the bin.

However, there are a few very important reasons why we should pay careful attention to our credit card statement as soon as it arrives.

• Interest Rate – Our credit card statement shows us our current interest rate. Many of us just spend on our credit cards without giving a second thought about the interest rate we are paying. Next time your statement arrives, check out your current interest rate. If it seems high, maybe it’s time to start searching for a credit card with a competitive interest rate.
• Current Balance – We often spend on our credit cards through the month without ever checking our balance. We can often be running up huge debts without even realising. Our credit card statement is a reminder of how we are spending. By being aware of our spending, we can make decsions to cut back on further spending if necessary.
• Fees & Charges – By checking our statement we can identify any extra fees and charges. If you have set up an automatic payment to pay your minimum balance then you should keep track of your balance. A rise in your usual balance can mean that this automatic payment may not cover your minimum payment. This could lead to extra fees and charges. You also need to be aware of any late payment fees. Sometimes public holidays can delay our credit card payments. You may need to set up your payment 1-2 days earlier to be sure you’re not hit with a late payment fee.
• Credit Card Fraud – Without checking your statement you have no way to know if you’re credit card has been compromised. Many people believe that credit card fraud involves huge amounts of money and that you would certainly know about it. However, many times criminals take smaller amounts which are less noticeable over a period of time.

Checking your credit card statement only takes a few minutes every month. Checking your statement helps to evaluate your spending habits and modify your spending if necessary, check for credit card fraud, review your current interest rate and check for extra fees and charges. Next time your credit card statement arrives, I’m sure you’ll be more willing, if not interested in opening it.