A summary of the transactions on your account--your payments, credits, purchases, balance transfers, cash advances, fees, interest charges, and amounts past due. It will also show your new balance, available credit (your credit limit minus the amount you owe), and the last day of the billing period (payments or charges after this day will show up on your next bill).
Payment information
Your total new balance, the minimum payment amount (the least amount you should pay), and the date your payment is due. A payment generally is considered on time if received by 5 p.m. on the day it is due. If mailed payments are not accepted on a due date (for example, if the due date is on a weekend or holiday), the payment is considered on time if it arrives by 5 p.m. on the next business day.
Example: If your bill is due on July 4th and the credit card company does not receive mail that day, your payment will be on time if it arrives by mail by 5 p.m. on July 5th.
Late payment warning
This section states any additional fees and the higher interest rate that may be charged if your payment is late.
Minimum payment warning
An estimate of how long it can take to pay off your credit card balance if you make only the minimum payment each month, and an estimate of how much you likely will pay, including interest, in order to pay off your bill in three years (assuming you have no additional charges).
Notice of changes to your interest rates
If you trigger the penalty rate (for example, by going over your credit limit or paying your bill late), your credit card company may notify you that your rates will be increasing. The credit card company must tell you at least 45 days before your rates change.
Other changes to your account terms
If your credit card company is going to raise interest rates or fees or make other significant changes to your account, it must notify you at least 45 days before the changes take effect.
Transactions
A list of all the transactions that have occurred since your last statement (purchases, payments, credits, cash advances, and balance transfers). Some credit card companies group them by type of transactions. Others list them by date of transaction or by user, if there are different users on the account. Review the list carefully to make sure that you recognize all of the transactions. This is the section of your statement where you can check for unauthorized transactions or other problems.
Fees and interest charges
Credit card companies must list the fees and interest charges separately on your monthly bill. Interest charges must be listed by type of transaction (for example, you may be charged a different interest rate for purchases than for cash advances).
Year-to-date totals
The total that you have paid in fees and interest charges for the current year. You can avoid some fees, such as over-the-limit fees, by managing how much you charge, and by paying on time to avoid late payment fees.
Interest charge calculation
A summary of the interest rates on the different types of transactions, account balances, the amount of each, and the interest charged for each type of transaction.
Learn About the Changes to Your Credit Card Statement
In December 2008 the Federal Reserve approved rules to better protect credit card users, including improvements to monthly credit card statements so that cardholders could more easily understand payments and interest rates charged. As of July 1, 2010, the issuers are now required to tell cardholders how long it will take to pay off the balance if they pay only the minimum payment and how much total interest they will pay in that time. This information might shock consumers into paying off their balance as fast as possible.
Below is a sample statement, from the Federal Reserve, that explains the changes. Mouse over the number and read the details on each part of the statement.
Credit Card Statement Changes from Five Cent Nickel
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Do you think consumers will pay off their credit cards faster once they know how much interest they're paying and how long it will take? Tell us what you think of the new statement.
It’s about time credit card companies are required to show all their charges, penalties, and interest rates. I just wonder how long it will take for lawyers, lobbyists, and politicians to change this or allow it to be buried in a huge online document that nobody could understand, and then reference the site and consider that adequate notification.
I overhead a conversation the other day between several elderly folks. They seemed to interpret the new information on how much interest they would have to pay if they only paid the minimum as thinking the companies were ripping them off all of a sudden due to new laws. I think it will be a wake up call to some people. In the past, they could just stick their head in the sand. Now it’s going to be right in their face every month.
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Loving # 4
Comment by Moneymonk — Jul 13th 2010 @ 5:20 pmYeah, #4 rocks!
It’ll “wake people up” before they consider not paying their credit card this month. =)
Comment by youngandthrifty — Jul 14th 2010 @ 8:44 pmIt’s about time credit card companies are required to show all their charges, penalties, and interest rates. I just wonder how long it will take for lawyers, lobbyists, and politicians to change this or allow it to be buried in a huge online document that nobody could understand, and then reference the site and consider that adequate notification.
Comment by Joe Viers — Jul 27th 2010 @ 2:30 pmI overhead a conversation the other day between several elderly folks. They seemed to interpret the new information on how much interest they would have to pay if they only paid the minimum as thinking the companies were ripping them off all of a sudden due to new laws. I think it will be a wake up call to some people. In the past, they could just stick their head in the sand. Now it’s going to be right in their face every month.
Comment by Mrs. Accountability — Jul 30th 2010 @ 8:28 pm