What do you look for when your credit card statement arrives in the mail? Many consumers just look at the balance, amount due and due date on their monthly credit card statements, but they are only getting part of the story.

To fully understand your statements, it is important for consumers to know what to look for each month and to understand the information being presented. Your Credit Card Companies has assembled tips to help you take full advantage of your credit card benefits, stay on budget, manage your debt better and protect against identity theft and fraud.

You should specifically look for and have an understanding of the following items:

• Name, address, account number: Make sure your contact information is accurate. Double-check to see that the account number on the card matches the one on the statement. Notify your card issuers approximately one month in advance of a change of address to ensure that statements get sent to the correct address.
• Purchases/new charges: This section lists the amount, dates and locations of your purchases. Promptly open and check your statements for any unfamiliar purchases and immediately report any unauthorized use to your credit card issuer. (Credit fraud criminals will sometimes make a small purchase first, to see if it goes undetected, before buying more expensive items.) Save your receipts to reconcile against the statement and then destroy your receipts. Members of Your Credit Card Companies do not hold customers liable for unauthorized purchases.
• Minimum payment: This is the smallest amount you can pay by the due date and still meet the terms of your card agreement. The minimum is usually a specific fraction of the balance and not the total amount you owe. If you choose to pay just the minimum due on any amount below the full balance, you'll owe interest on any portion of the balance that you don't pay.
• Due-by date: Be sure to get your payment to your card issuer by the due date listed. Failure to do so could reflect negatively on your credit report and could cause you to incur a late fee. Federal law requires that payment is credited to your account the day it is received. To be sure your payment arrives on time, mail it at least five to seven days before it is due. Many credit card companies offer an online payment option. This option is generally much faster than traditional mail and usually posts to your account within 24 hours.
• Customer service number: All issuing members of Your Credit Card Companies provide 24-hour, seven-day-a-week customer service. Call your issuer's customer service number to check your balance, make a payment, report a lost or stolen card or to speak with a customer service representative about any questions you have about the terms of your agreement or any discrepancies you may find on your statement.
• Balance: This is your account total as of the statement date. It includes any unpaid balance from the previous months, new purchases since the closing date of your last statement and any cash advances you may have taken. Other charges such as finance charges and fees are also usually included.
• Payments and credits: You should review this section to ensure all payments and credits, such as those that might come from a store refund, have been accurately recorded.
• APR: Also known as the interest rate, the Annual Percentage Rate (APR) is the cost of credit. If you carry an unpaid balance, the APR is your best indicator of account costs. The higher your APR, the more you will pay in finance charges. Your rate may also change as described in the Cardmember Agreement or upon written notice from your card issuer. Make sure the rates noted in your statement are in accordance with your understanding of the terms of your agreement with the credit card issuer. Call your card's customer service department if you have any questions or note any discrepancies.
• Finance charges: This is the price paid to a lender for the use of borrowed money. Finance charges include both interest and certain fees. Interest is charged as a percentage of your outstanding balance. This percentage, or interest rate (APR), can vary from card to card.
• Cash advances: Your interest rate (APR) for cash advances may be different than the rate for card purchases. Check the cash advance APR on your card statement or your card agreement.
• Method of computing balance for purchases: Finance charges are calculated in different ways. Your account statement describes the method that applies to your card. Call your issuer's customer service department if you have questions about how your card's finance charges are calculated.
• Grace period: This is the time in between credit card bills, where you can maintain a balance without accruing interest against your purchases. In other words, the grace period is the length of time one has to pay off a bill prior to incurring interest charges. Grace periods vary according to policies of the individual companies offering the lines of credit.
• Credit limit: This is the maximum balance you can carry on your account. Your credit limit helps keep your credit card charges at a level you can pay. Each card issuer has its own standards for setting credit limits. (Note that late fees and finance charges count toward your credit limit.)
• Late fees: Late fees are avoidable and late payments may harm your credit history, which could make it harder for you to get credit in the future. You may be charged a late fee if your payment doesn't reach the card company by the due date.
• Other fees: Companies may charge a fee if your balance exceeds your credit limit. You may also be charged fees for returned checks, returned cash advance checks or stop-payment requests.
• Special notices: From time to time, card issuers make changes to the terms and conditions of the cardholder agreement. Notices regarding these changes are typically inserted in the envelope with the billing statement. Make sure to carefully read the inserts that come with each credit card statement. If you have questions or are concerned about the new terms, speak with your issuer's customer service representative about your options.

Want to see more?

• Good Card, Bad Card: The Armchair Millionaire’s Checklist for Choosing the Best Credit Card
• Credit Ratings 101
• Talk about it!