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Your Monthly Statement

This will explain to you how to get all the information you need from your credit card statement and help you to use your credit card statement to better manage your credit card spending and repayments.

Click on the link to view information about each of the following topics:

Understanding Your Credit Card Statement

Your monthly statement will include information about transactions made since the last statement date, the total amount that you owe, any interest owing on the outstanding balance and the minimum repayment required. Other useful 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 that is now included on monthly statements.

With the development of electronic banking, some credit card companies may provide you with your statement via the Internet, either exclusively or in addition to a paper statement. Some customers do not receive statements through the post at all. The on-line version of your statement will include the same information that is 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 you may incur a default charge.
  • APR : this is usually provided on statements and is a measure of how much borrowing on your credit card will cost.
  • 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 for you to understand what part of the outstanding balance will be paid off first.

Checking Your Monthly Statement

You should always check your statement thoroughly every month. Take care to review all of the transactions listed against your receipts. Make sure that there are no entries for items that you did not purchase or have no knowledge of, or that you have not been debited incorrectly.

Your monthly statement also provides a useful reminder of your Terms & Conditions, telling you the minimum repayment required from you and the date by which your card company must receive that payment. The statement will also tell you the full balance owing on the account at the time the statement was issued, and may give notice of any changes to be applied to interest rates or charging methods.

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Statement Errors

If you spot a mistake on your statement, a charge for something that you did not buy, for an item that wasn’t delivered as agreed, or you do not recognise a transaction that is listed, contact your card company immediately.

You will still have to pay any part of the amount due that is not in dispute, including interest and charges. However, interest on the disputed transaction will usually be suspended or refunded if an error has been made.

When buying goods online always make sure you keep a print out of the purchase and read the retailer’s own Terms & Conditions.

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Paying Off Your Balance

One of the best ways to guarantee that you will always make your minimum repayment or that you will clear your outstanding balance is to set-up a Direct Debit. This will make sure you don’t miss any repayments and will avoid any charges for late payment. You can make additional repayments at any time and by any method that is convenient for you.

If you do not pay the full amount by Direct Debit, remember to allow enough time for your payment to reach your account. There will normally be information that tells you how long you should allow.

Unforeseen circumstances, such as an emergency or loss of employment, may mean that you cannot afford to make your repayments. Try to save for a rainy day in case something unexpected happens to you. Many problems are only for a short time. Having savings can help you through such times. If you do have problems there is practical advice in the Having trouble with your debt section.

Think carefully before withdrawing cash on one card to pay off another. Do not use one card to pay off another on a regular basis as, in reality, you are not paying off any of your debt.

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Estimated Interest

Every month your statement will tell you how much interest you would be charged if you made only the minimum repayment on the date that it was due. This is effectively the maximum amount of interest you could incur on the following month’s statement if you do not use your card again. This can be a useful guide to the cost of borrowing on your card.

This estimated interest is provided to help you plan the level of your repayment for the next month. It gives you a clear idea of what the interest charge will be next month if you make only the minimum repayment in the current month.

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Making Only the Minimum Payment

Making the minimum repayment can help in the short-term if you have other financial priorities. In fact, if you are taking advantage of a 0% offer then it can make sense to make only the minimum payment.

However, we do not recommend making the minimum repayment on a regular basis as this will cost you more and it will take you a long time, perhaps many years, to clear your balance. The minimum repayment is NOT a suggested payment schedule. It gives you the flexibility to choose how much you borrow and how much you pay back.

With most cards you can set up a Direct Debit to pay off the minimum repayment each month. This will ensure you will avoid ever incurring a late payment fee.

Do not make the minimum payment on a long-term basis.

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Disputed Transactions

If, for any reason, you experience a problem with the goods or services that you have purchased with your credit card you should first contact the retailer or service provider.

  • Make your complaint as soon as possible. The longer you wait to complain the more difficult it may be to prove your case.
  • A retailer cannot refuse a refund for goods that are obviously faulty and so you should not accept a credit note if you do not want one.
  • Try to provide some form of proof of purchase. It need not be a receipt; a credit card statement will often be enough.
  • If the retailer or service provider will not assist you or refuses to accept your complaint then you should write a letter of complaint to either their head office or manager.
  • If all else fails, it may be possible to obtain a refund from your credit card company. Copies of any correspondence with the retailer will help. Under Section 75 of the Consumer Credit Act 1974 your credit card company and the retailer could be equally liable in the event of any breach of contract or misrepresentation.

Remember that you are not legally entitled to a refund if you simply change your mind about what you have bought. However, many retailers are happy to exchange goods or give a refund or a credit note if you do change your mind.

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