Review Your Credit Card Statements and Notices | Credit 101 Ep. 191

Regularly reviewing your credit card statements and notices is a key practice in maintaining good financial health and protecting yourself from fraud. Here’s how to effectively manage this important task:

1. Examine All Transactions

• Check for Errors: Ensure that all transactions listed on your statement are accurate and authorized.
• Spot Unusual Activity: Look for unfamiliar charges, which could indicate fraudulent activity or errors.

2. Verify Fees and Charges

• Understand Fees: Review any fees applied, such as annual fees, late payment fees, or foreign transaction fees.
• Challenge Unjust Fees: Contact your credit card issuer if you see fees that you believe are incorrect or should be waived.

3. Review Statement Details

• Account Summary: Check your balance, available credit, and minimum payment due.
• Payment History: Confirm that your payments are being applied correctly to your balance.

4. Monitor Your Credit Utilization

• Track Usage: Observe your credit utilization ratio, which is the percentage of your credit limit that you are using.
• Stay Below 30%: Aim to keep your credit utilization ratio below 30% to maintain a healthy credit score.

5. Look for Unauthorized Transactions

• Report Immediately: If you spot any unauthorized transactions, report them to your card issuer immediately to limit your liability.
• Follow Up: Ensure that the fraudulent charges are removed and your account is secured.

6. Keep an Eye on Your Credit Card Notices

• Read Notices: Pay attention to any notices from your card issuer, such as changes in terms, fee adjustments, or promotional offers.
• Respond Promptly: If a response or action is required, handle it promptly to avoid potential issues.

7. Reconcile Your Records

• Cross-Check: Compare your credit card statements with your personal records or budget to ensure everything aligns.
• Update Records: Make any necessary updates to your financial records based on your statement.

8. Review Your Credit Card Terms

• Understand Terms: Regularly review your credit card agreement to be aware of your interest rates, fees, and rewards program.
• Update Preferences: Adjust your preferences for notifications, alerts, and payment methods if needed.

9. Use Digital Tools

• Online Access: Utilize your card issuer’s online platform or mobile app for real-time access to your statements and account information.
• Set Alerts: Configure alerts for due dates, spending limits, and new transactions to stay informed.

10. Address Discrepancies

• Document Issues: If discrepancies are found, document them and contact your card issuer for resolution.
• Follow Up: Keep records of your communications and follow up until the issue is resolved.

Conclusion

Regularly reviewing your credit card statements and notices helps you stay on top of your finances, catch any errors or fraudulent activity early, and ensure that you are being charged correctly. By adopting these practices, you can better manage your credit card accounts, protect your financial well-being, and maintain a positive credit history.