Your credit card statement must include information about charges, interest and fees to comply with full disclosure laws. It can be confusing to follow all the information, especially when there are several days listed. Keep an eye on your due date, as that is when you must make a payment to avoid negative financial consequences.
Billing Cycle
Every credit card company uses a billing cycle -- a period of about 20 to 25 days -- to determine how much interest to charge you. The billing cycle closes on the same date each month, although you may not get the bill until later in the month. For example, the billing cycle may close on the 9th of the month and you may get the statement on the 15th. The statement date refers to the date the statement was printed, not to the last day of the billing cycle.
Grace Period
If you do not have any previous balance on the card, you usually get a grace period between the end of the billing cycle and the date your monthly payment is due. The credit card company does not charge you any interest on your purchases during this grace period. If you do not pay your bill by the due date, the credit card company begins charging interest on your purchases.
Due Date
The due date is the date that your payment is due. If you do not pay your balance in full on this date, then you do not get any grace period on new purchases, and the credit card company begins charging interest on the balance. Most credit card companies take a percentage of your total balance to determine your minimum payment amount.
Reading Your Statement
Your statement lists information about your current balance, any past due amounts, your interest charges and your billing date, due date and statement dates. Read your statement carefully each month to understand all the charges you are paying. Check your statement for unauthorized charges and contact the credit card company immediately if you see charges you do not recognize to reduce your liability for unauthorized charges.
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