Your monthly statements
Your monthly statement will include information about:
- Transactions made since your last statement
- The total amount that you owe
- Any interest owing on the outstanding balance
- The minimum repayment required
Other information, such as the ‘allocation of payments’ – which explains how your card issuer will use your payment to reduce your balance – will be provided in the statement version of the summary box, which is now included on all monthly statements.
Some credit card companies may enable you to access your statement online, either exclusively or in addition to a paper statement.
The online version of your statement will include (as provided in a paper statement):
- Outstanding balance: this tells you how much you owe in total.
- Minimum repayment: this is the minimum amount you must pay your credit card company for the current billing cycle.
- Payment due date: this specifies the date by which your credit card company must have received the minimum repayment owing on your credit card account. If your credit card company does not receive the minimum amount by this date then you may incur a default charge.
- APR: this is a measure of the cost of borrowing on your credit card.
- Interest rates: this shows you the interest rates for different types of borrowing. For example the rate of interest for making purchases and how much it costs to get a cash advance, such as by withdrawing money from a cash machine.
- Allocation of payments: this shows you the order in which different kinds of borrowing and different parts of the outstanding balance on your account will be paid off when you make a payment. As different types of transactions and different parts of the outstanding balance will incur different levels of interest this information is important in order for you to understand what part of the outstanding balance will be paid off first. Since December 2010, payments have been allocated to the highest interest rate part of the balance first, through to the lowest last.
This section explains how to get all the information you need from your credit card statement and help you to use it to better manage your spending and repayments.