4 Things You Should Always Pay Attention to When Reviewing Your Credit Card Bill

It only takes a few minutes, and you'll be glad you did it.

If you're like most people, you probably prefer to spend as little time as possible looking at your credit card bill, especially if you're carrying a balance or spent more than you intended to last month. It's easy to just make note of the balance or minimum payment and then toss the notice aside. But if you do this, you could be missing out on valuable information. Here are four things you should check every time you receive a new credit card statement.

1. Payment due date

Credit card statements display the payment due date pretty prominently, so this isn't too difficult to find. You must pay by this date if you hope to avoid late payment fees and interest charges. Set a reminder for yourself so you know when this bill is due and be sure you make at least the minimum payment by then.

2. Minimum payment

Ideally, you'd be able to pay your credit card bill in full each month. This will stop your balance from accruing interest and becoming unmanageable. But for those already struggling with credit card debt, the more important number is the minimum payment. This is the smallest amount you can pay without incurring late fees or running into trouble with the credit card issuer.

Minimum payments are generally at least $25, but they can be much higher depending on the card issuer and your balance. Whenever possible, try to pay more than this, even if you know you won't be able to pay the bill in full.

3. Changes to the credit card's terms

Credit card issuers have to notify you before they make certain changes to your card, like raising the interest rate. But these notifications are often buried in the fine print of your credit card statement. You can easily miss them if you're not checking your statements thoroughly.

Look over each credit card statement for any mention of upcoming changes to card interest rates or other terms. And don't hesitate to reach out to the company if you have any questions about a notice on your credit card statement.

4. Purchases you didn't make

Your credit card bill should contain an itemized list of all purchases made during the last month, including the retailer and the dollar amount of the purchase. It's good practice to review this every month to ensure you're not the victim of identity theft.

Look for any purchases that are unfamiliar, especially if they occurred in a place where you don't live and haven't traveled to. Sometimes, the name on your credit card receipt may not correspond with the name of the retailer you're familiar with. Using the information on your statement and your knowledge of your recent purchase history, try to determine if this was a legitimate buy or not.

If you notice any unusual activity on your credit card, notify the card issuer immediately. A representative will go through your recent purchase history with you to identify other fraudulent purchases and then they will cancel your card and issue you a new one with a new number. 

Doing the four things above shouldn't take you a lot of time, and they can help you avoid a lot of unpleasant surprises. If you need to, set reminders for yourself to take these steps at first until they become a habit.