credit card statement
A monthly summary of all transactions, fees, interest charges, minimum payment due, and current balance.
Example
“Reviewing the credit card statement monthly helped her catch a fraudulent charge immediately.”
Memory Tip
STATEMENT — your monthly report card. Review every line every month.
Why It Matters
Understanding your credit card statement helps you track spending, identify fraud, and manage debt effectively. By reviewing it regularly, you can catch unauthorized charges quickly and understand how interest and fees impact your balance, which directly affects your financial health and credit score.
Common Misconception
Many people believe that paying only the minimum payment shown on their statement is a good financial strategy. In reality, minimum payments mostly cover interest and fees while leaving the principal balance nearly untouched, causing you to pay significantly more in interest over time.
In Practice
If your credit card statement shows a balance of 5000 dollars with a 20 percent annual interest rate and a minimum payment of 150 dollars, paying only the minimum means about 80 dollars goes toward interest that month while only 70 dollars reduces your actual debt. If you instead pay 500 dollars monthly, you would eliminate the balance in about 11 months rather than several years of minimum payments.
Etymology
From Latin 'stare' meaning to stand — a standing record of all account activity.
Common Misspellings
Check your credit score free — no impact
Related Terms
More in credit
Other credit terms you should know
See Also
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