A quick guide to understanding your credit card bill

Posted at 03/16/2014 8:58 AM | Updated as of 03/17/2014 9:10 AM

MANILA, Philippines - They say “what you don’t know won’t hurt you.”

Apparently, this does not apply when it comes to your credit card statement. This simple piece of paper can actually determine where you stand in terms of finances, more specifically, your credit standing with your issuing bank.

Many of us just look at the total outstanding balance and the minimum payment required because all the numbers and terms can be quite confusing to understand. They can be difficult to read especially if the words sound too technical and if the numbers and percentages do not make some sense.

However, you can be losing a lot of money in the long run if you do not know how to read your credit card bill. Scrutinizing your credit card statement can actually empower you as a consumer and make sure that you’re not to getting drowned in credit card debt.

A credit card statement shows all your payments and purchases for the entire month or for a particular period of time as set by the issuing bank. Each statement covers all the transactions made using your credit card since the date of your last bill.

Keep in mind that you must always check the account transactions every month. This part shows the description, date of transaction, reference number and the amount involved in every transaction. If any of the items do not sound familiar to you, check all your receipts and try to recall when and where you used your credit card. If there are charges that seem suspicious, the best thing to do is to call the customer service of your credit card provider.

The credit card statement is actually a reminder of the Terms and Conditions you signed for when you first received your credit card, but who actually reads that lengthy paper on a busy day? Nevertheless, it pays to know each and every detail of your transactions, especially if it involves your money.

Here’s an infographic for you to learn more about reading your credit card statement well. Avoid credit card shockers by educating yourself!

MoneyMax is the Philippines’ foremost online platform for comparing financial and telecom products and services – fast, comprehensive, and free. We aim to give the power of smart purchase decisions back to Filipino consumers by providing everything they need to become financially savvy. Find out more at MoneyMax.ph.