Breaking It Down: Credit Card Bill

If you have a credit card you are very familiar with your credit card bill. Every month you pay at least the minimum payment due and go on your merry way. But what do all the other terms on your bill mean?

Credit card bills are pretty straightforward documents that give you a snapshot of your credit card account at the end of each statement period. Each bill will contain a specific amount of information that will tell you how much you owe, when you owe it and how you can pay it.

Account Summary

This is the general summary of the activity in your account during the statement period (usually the last month). It shows the balance carried over from the previous statement plus recent transactions, credits and payments onto the accounts plus interest charges and fees. 

This summary shows you all activity from the previous month on your account so you can see how your balance was calculated.

Statement Balance

This is the amount you owe as of the end of the statement period, also known as the outstanding balance. If you wanted to pay off your entire balance and hadn’t made any purchases since this statement period had ended this would be the amount you would have to pay.

Minimum Payment Due

This is the amount you must pay before the due date. You can pay more but you cannot pay less than this amount without penalty. This may be a fixed amount or calculated based on the amount you owe, or the terms of your credit card agreement. If you notice your minimum payment keeps getting higher it is likely based on your balance and not a fixed amount.

Payment Due Date

This is the date that you must pay the minimum payment by. If you pay after this date you will be charged a late fee and your credit score will likely be dinged. Depending on your credit card you may be able to choose your payment date in your online banking if you prefer to pay on a specific date to keep all of your bills together.

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