Table of Contents Hide
- What is a Billing Statement?
- How It Works
- What is on the Billing Statement?
- Example of a Billing Statement
- What Happens If You Don’t Get a Billing Statement?
- Billing Statement FAQs
- How can I get my billing statement?
- Is a billing statement an invoice?
- How do you prepare a statement of payments?
- What is a statement charge?
Keeping track of your credit card transactions can be a time-consuming task. You don’t have to perform the labor yourself, which is a blessing. Your credit card company will give you a billing statement each month with all of the information you need to know about your credit card account.
This is an essential statement. Understanding it assists you in maintaining your credit card account, keeping it in good standing, and ensuring that you are only paying for transactions that you made.
Make it a habit to go over it once a month so you know what’s going on with your account. Here we’ll go over all you need to know about your billing statement and look at an example.
What is a Billing Statement?
A billing statement is a monthly credit card bill that highlights your account’s activity for the previous month. All purchases and payments are itemized on the bill. It displays the account’s current balance as well as the date by which the account must be settled in order to avoid financing charges.
Many people use their credit cards to pay for both routine transactions and huge one-time purchases. Although these transactions are displayed on their monthly billing bills, not everyone realizes the need of double-checking those transactions and pay the minimum monthly payment to avoid late payment fines.
How It Works
Billing statements are an important form of communication since they inform borrowers of the minimum monthly payment required to keep their accounts current. It also contains vital information such as the transactions that occurred throughout the month, the total interest charged for the month, and any fees applied to the balance by the credit. It also indicates the closing statement balance, which the borrower can pay off totally.
What is on the Billing Statement?
Everything you need to know about your credit card account is on your billing statement. It includes the following:
- Your previous billing cycle’s balance
- The required minimum payment
- The payment deadline
- If you pay late, you will be charged a late fee.
- Payments, credits, purchases, balance transfers, cash advances, fees, interest, and other transactions are summarized and described.
- A breakdown of your account’s balance kinds, as well as the interest rate and interest charges for each.
- Your credit limit and credit availability
- The length of your billing period
- The total amount of interest and fees paid so far this year
- Your credit card company’s contact information
- If appropriate, rewards received or redeemed
Your credit card statement will include a minimum payment disclosure. This specifies how long it will take to pay off your balance if you simply make the minimum payment and how much you will end up spending. It will also include the monthly payment required to pay off your debt in three years. This information assists you in determining the best approach to pay down your credit card amount.
There will also be a phone number you may call if you’re having problems paying payments and want to learn more about credit counseling.
Transactions on Accounts
The disclosure of transactions takes up a considerable section of a credit card billing statement. Typically, at the beginning of the transaction report, a credit issuer will include an itemized overview of interest rates charged per transaction category. The account transactions section will then display each charge made during the billing cycle. Transactions often include detailed charge information such as the transaction date, post date, merchant name, and transaction amount.
Example of a Billing Statement
Martha uses her credit card for day-to-day expenditures and pays off the balance when she receives her salary. She occasionally uses her credit card for significant purchases, which she pays off over time. She always pays the minimal sum before the due date, which helps to keep her credit report in good standing.
When she receives her monthly billing statement, she double-checks it by comparing it to her records of what she purchased, money she withdrew, and payments she made.
When Will Your Billing Statement Arrive?
At the end of each billing cycle, your billing statement is issued to the mailing address on file with your credit card issuer.
Credit card billing statements must be delivered at least 21 days before the due date so that you have enough time to make your payment on time and avoid finance charges if your amount is subject to a grace period.
If you have signed up for paperless billing, which means you check your credit card statements online rather than receiving a paper statement in the mail, you will receive an email informing you that your bill is now available to view online. Paperless statements are merely electronic versions of statement statements. Sign in to your online credit card account and look for a link to get your paperless statement.
Even if you haven’t enrolled in paperless billing, many credit card companies make billing statements available online. To view the paperless version of your billing statement, you’ll most likely need a PDF reader. The statement you obtain online is a carbon copy of the one you’d get in the mail.
Make sure your credit card statement includes your accurate mailing or email address so you can receive your credit card statements and email alerts.
The Benefits of a Billing Statement
A billing statement is a reasonably harmless collection strategy because receivers do not believe it to be unduly intrusive. A billing statement may result in the payment of some late invoices as long as it is received by a payables clerk who is interested in reviewing it.
The Drawbacks of a Billing Statement
The seller bears the expense of printing and postage when billing statements are mailed. If clients are not diligent in evaluating the representations, this may not constitute a significant cost-benefit tradeoff.
Will You Get a Statement If You Close Your Card?
You will continue to receive monthly billing statements on a closed account until your credit card amount is paid off.
You will still be responsible for making regular monthly payments after you cancel your account. Also, you may be charged interest and fees on your outstanding balance.
You’ll, however, be unable to make new changes to your account.
Even if your account is terminated, review your billing statement to ensure that the transactions are proper and that your payments have been applied accurately.
What Should You Do If You Discover Errors on Your Billing Statement?
One of the most crucial reasons to go over your credit card statement thoroughly is to ensure that everything is proper. If you discover a billing problem, you have the right to dispute it with your credit card company. However, you must do it within 60 days of getting your statement.
Many credit card companies will handle your dispute if you simply call them. To safeguard your rights under the Fair Credit Billing Act, however, you must send a letter outlining your issue. 6 If the credit card company does not rectify the billing error, you will have proof that you challenged it. Having proof will be useful if you need to file a complaint with a government body, such as the Consumer Financial Protection Bureau (CFPB), or sue your credit card company. It’s fine, to begin with, a phone call and then follow up with a letter.
Your Billing Statement Does Not Include All Transactions
Your billing statement only shows account activity that occurred during your billing period. Transactions made before or after the beginning and end of the billing cycle will not be reflected on your billing statement. The billing cycle dates can be seen at the top of your credit card statement.
Sign in to your online account to view a list of transactions that have been posted to your account since your billing statement was generated. If you need to see a transaction that occurred before the billing cycle for your current credit card statement, you’ll have to hunt for a copy of a previous credit card statement.
To sign up for an online account, go to the credit card company’s website and seek a signup link. You’ll be able to log in at any time to view your account details or make a payment once you’ve created a username and password.
What Happens If You Don’t Get a Billing Statement?
If your account balance is less than $1 and there was no action on your account during the preceding billing cycle, you may not receive a billing statement. Another reason you might not get a billing statement is if your credit card company does not have your current address on file. If you’ve just relocated, you must notify your credit card company and alter your billing address.
Finally, if your account has been charged-off or is in collections, the credit card firm is not required to send you a statement.
If you haven’t received your statement, contact your credit card company, especially if there is a payment owed.
What is the distinction between the closure date of the statement and the payment due date?
Because they both appear on your statement, it’s easy to mix up the statement closure and payment due dates. If you’re concerned about your responsibilities as a borrower, the payment due date is critical to remember; this is the date on which you must make your next payment. You don’t need to do anything for your statement closure date, but knowing it is useful. The closing date of your statement is the last day of the billing cycle that will be recorded for your next statement.
When will I receive my first credit card billing statement?
It may take several weeks to receive your first statement for new credit card accounts. This is depending on when the initial transaction posts to your account. Contact customer service to find out when your first billing cycle will conclude. You should receive your statement shortly after the cycle concludes.
In most cases, billing statements will also include a payment voucher for customers who mail their payments and information on how to contact the credit card issuer if they have any issues.
The billing statement also tells a cardholder what to do if there is an error on the billing statement, how consumers may make payments, and how the card issuer will handle those payments. In addition, the fine print will clarify how the issuer calculates any interest costs.
Billing Statement FAQs
How can I get my billing statement?
Your credit card statement will usually arrive in the mail, but if you have chosen online, or paperless billing statements), you will either receive an email statement or you will need to go on to your credit card issuer’s website to check your statement.
Is a billing statement an invoice?
A statement merely shows a grand total due for each invoice, whereas an invoice provides more precise information about a specific sale, such as the item description, item price, shipping charges, and sales taxes.
How do you prepare a statement of payments?
To begin writing a billing statement, first identify your company by name, address, and contact information. Include the customer’s name, invoice number, as well as the date, description, and amount of each item. Remember to include payment terms and conditions at the bottom of the invoice.
What is a statement charge?
A statement charge enables you to directly add a line item to a customer’s account register. It has an effect on a customer’s balance but does not necessitate sending them an invoice.