Understanding a credit card statement is crucial when making use of these credit cards to make purchases. There are several statements you need to understand before you can decide if you want to make any purchases. Some of these are explained below:
Statement of account: This is the statement that details how much you owe each month and where you owe it. It also tells when you owe the money. When you make payments on time to your credit card company, your balance will be deducted from the statement of account. If you miss payments or do not pay your balance, you may be given an inquiry.
Statement of charges: The statement of charges details what is charged against your credit card balance each month. If you are unable to pay your balance in full every month, you may find that the charge that is on your statement of charges is incorrect and is going to cost you money in the end. If you have been given this statement by your credit card company, it is important to look at it carefully before you make any purchases.
Annual Percentage Rate (APR): The APR tells you how much interest you are paying on your balance each month. In many cases, you can get a better deal if you pay your balance in full each month and avoid paying interest on it. The lower your interest rate, the more you can save. Interest rates for credit cards are determined by a number of factors including your credit score, your credit card history and the balance you have outstanding. Your credit score determines how much interest you will pay based on the amount of credit you already have on your credit card.
Annual Percentage Rate (APR) statement: An APR statement shows you the interest rate and how much you are paying as well. These statements are used by your credit card company to determine how much they are going to charge you. When you make your payments on time, your balance will stay low and you will be able to qualify for a lower interest rate. Your credit card company will then take your new lower rate and apply it to your balance, which will reduce the overall amount you have to pay in interest each month.
Statement of status: As you continue to make payments on your credit card, you will see that your balance is going down and that you are meeting the minimum payment requirements each month. statement.