It’s essential to look at your monthly credit card statement. You want to ensure everything is correct, especially the interest rate and fees you’re being charged. Here are some things to look out for in the top credit cards:
Look at the interest rate.
Looking at the interest rate is just as important as any other part of your statement. It’s easy to get bogged down in the details and forget about this crucial information.
The interest rate on your credit card is responsible for how much you pay when you carry a balance on your account, which means it can be worth looking at carefully before applying for a card. For example, if you have an 18% APR (annual percentage rate) card but want something lower, that may not be an option if the new one has an even higher APR.
Lantern by SoFi experts suggests, “APR stands for annual percentage rate. That rate is related to but not the same as your credit card’s interest rate. An interest rate is simply the cost of the money you take out on a credit card, usually expressed as a percentage, like 20%.”
Make sure the credit limit is correct.
It’s essential to check the credit limit on your credit card statements to make sure it hasn’t been lowered without your knowledge. If your limit is lower than it used to be, call the bank immediately and ask why this is happening. They may want more information about why they lowered the limit for you to keep some of your privileges.
Look out for fraudulent charges.
- Look out for unfamiliar charges. You should be able to recognize the majority of transactions on your credit card statement, but some unusual transactions may indicate fraud.
- Check for unrecognizable names or wrong addresses. If a charge shows up on your statement and the name doesn’t match the person who made it, it may also indicate that someone has stolen your information and is attempting to commit fraud with it.
- Check for different amounts than you expected if any transaction seems unusually high compared with previous ones made around the same time.
Balance transfer fees can be hidden in your statement.
You often see the fee when you sign up for a balance transfer, but it’s not always clear what happens when you move your debt.
If you notice an unexpected balance transfer fee on your statement, contact the card issuer immediately and ask them to reverse the charge. According to Consumer Reports, they are legally required to do so if there was no written agreement about such fees at the time of signing up for the program.
Additional cards appear on your credit card statement.
If you see a new credit card on your statement, it could be that the issuer is trying to get you to sign up for their own version of a rewards program. If you don’t want the card and don’t want their rewards program, simply call them and ask them to remove it from your statement. If they refuse, ask them how much it costs to cancel this offer so that you can make an informed decision as to whether or not it’s worth paying the fee.
If you are looking for a credit card, the first thing you should do is check out your credit report. This will tell you what type of card best fits your needs and whether or not it’s worth applying for one.