How to Read a Credit Card Statement

Understanding your credit card statement is imperative if you regularly spend on your credit card and need to follow a tight budget. To most reading a credit card statement is fairly straightforward, yet for newcomers there may be a couple of features that need to be clarified. The key features of your credit card statement include:
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Electronic Statement Credit Card

The St. George Vertigo offers eStatements to customers, allowing your credit card statements to be delivered via e-mail, saving paper, and making it much easier to keep a record and history of your statements.

• $55 annual fee
• 2.99% for 6 months p.a. on purchases
• 20.74% p.a. on cash advances
• 2.99% p.a. for 6 months on balance transfers

Click here to read the St George Vertigo terms and conditions

#1 – The Statement Period

Knowing this period of time is essential to take advantage of your 55 day interest free period.

A common misconception (one which banks wish more people would stay in the dark about) is that 55 days interest free applies from the date of your purchase. Another thing to take notice of is the text ‘up to 55 days interest free on purchases‘. Depending on your statement cycle, it could be up to several days less.

So when does the 55 day interest free period actually apply? What it actually applies to is the ‘55 days’ from the start of your last statement period, till it’s ‘Payment due date’ (2).

From the statement below, this is a grace period of 53 days between the 27th of February – 20th of April. If you made a purchase on April 16th for example, you only effectively have 4 interest free days on your purchase.
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#2 – Payment Due Date

This is the date you must pay at least the ‘Minimum amount due’ (3) for your current credit card statement.

If you do not pay at least the minimum repayment, your credit card rating will be affected and you will be charged a late payment fee of $10-40 (depending on your financial provider).
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#3 – Minimum Amount Due

Also known as your ‘minimum repayment’, this figure is often 2-5% of your balance or $10-30, generally whichever is higher applies.
Try to avoid paying only the minimum repayment unless absolutely necessary, as it can take years to pay off balances as low as $500 (thus accumulating significant interest over that period of time).
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#4 – Overdue

This is how much payment you have overdue. The longer you delay this payment, your bank may be constantly charging you late payment fees along with black marks being tallied towards your credit score.
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#5 – New Charges

This is the accumalative amount of all your transactions made in your statement period to date.
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#6 – Payments/Refunds

This is the accumalative amount of all your repayments made towards your credit card in your statement period to date.
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#7 – Closing Balance

How much you currently owe on your credit card. If you have put more money on your card than your credit limit, this figure will be displayed as negative.
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#8 – Transactions

This area lists all your transactions, including the date of purchase, transaction reference code, what was purchased and how much it cost.
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#9 – Purchase / Cash Advance Rate

These are your standard annual percentage rates (APR) on purchases and cash advances.
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#10 – Daily Rate

Although interest rates are given as a yearly figure, this is the real figure which applies to your transactions. This is how much interest will accumulate on your purchases/cash advances each day. You can find this figure by dividing your annual rate by 365.
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#11 – Reward Points

Note: This is not present on the example statement below as the card does not offer rewards.
However, on reward program cards, you will be given a figure for how many reward points you have in total, as well as how many you’ve earnt in your most recent statement period.

Related posts:

1. Understanding Your Coles Source Credit Card Statement
2. Always Read Credit Card Terms And Conditions
3. Go Green And Switch To An Online Credit Card Statement
4. Late and Over Limit Fees
5. Credit Card Balances
6. Credit Card Interest Rates
7. 3 Must Read Balance Transfer Articles

One Response

1. carly Says:
   April 13th, 2009 at 2:02 pm

   The 55 days interest free period only applies if your balance is at $0 when you make the purchase.
   Eg- $0 balance then you spend $500 on a sofa- you then get UP TO the 55 days interest free period on the $500.
   If you already owe something, eg $50 and then you spend $500 on the sofa, you don’t get the $500 interest free period, the total $550 will be accumulating interest at the interest rate from the date of purchase.
   So you will only get the UP TO 55 days interest free if balance at $0 when making the purchase.

Editor's Choice: Our Top Credit Cards

Credit Card	Card Details	Interest Rate (p.a.)	Cash Advance Rate (p.a.)	Balance Transfer Rate (p.a.)	Annual fee	Interest free days (up to)
St George Vertigo	Editor's Choice: Low Interest Low 2.99% for 6 months (reverts to 11.99%) p.a. interest rate and balance transfer rate, from one of Australia's most respected banks.	2.99% for 6 months (reverts to 11.99%)	20.74%	2.99% for 6 months	$55	55
Coles Group Source MasterCard	The Coles Group Source MasterCard has no annual fee, a 0% p.a. balance transfer offer for 6 months, with a rewards program including savings on fuel and FlyBuys Points	19.74%	21.99%	0% for 6 months	$0	62
Bankwest Zero Platinum MasterCard	Editor's Choice: No Annual Fee Excellent introductory offer with a $0 annual fee for the life of the credit card and a 1.99% p.a. for 9 months on balance transfers	16.99%	16.99%	1.99% for 9 months	$0	55