What’s a Billing Statement?

Credit card companies send monthly statements called a billing statement to their cardholders. This shows the cardholder’s most recent transactions and any monthly minimum payments due. Each billing cycle ends with a bill statement. Credit card holders may receive their billing statements either by mail or online.

How a Billing statement Works

A bill statement is an important piece of communication. It provides a borrower with the minimum monthly payment they must make to maintain their account. Other important information includes transactions, total interest and any fees imposed by credit issuers. It includes the closing balance. The borrower can pay it off completely.

What’s inside a Monthly Billing Statement?

A billing statement can be divided into multiple sections. The first section includes the cardholder’s prior balance, payment history, and credit. The total amount of all new purchases made in the current billing cycle, including balance transfers, cash advances and fees. The billing statement provides information about the minimum payment and due date for late fees. A borrower can have a revolving credit account that gives them an unlimited line of credit. They can make monthly payments and reuse them. The credit issuer will generate the minimum monthly payment each month. This allows the borrower pay down their balance to keep their credit line open and in good standing.

The cardholder will find details about their account in another section. This section contains detailed account information, including the total credit limit, amount used and amount remaining. This section will also include the amount of cash advances that are available. The benefits section of the billing statement may be useful for those who have rewards credit cards. This section lists the rewards points that a cardholder has earned.

Account Transactions

The disclosure of transactions is an important part of credit card billing statements. A credit issuer will usually provide an itemized summary at the start of the transaction report of the interest rates charged for each transaction category. Each transaction that was charged during the billing cycle will be shown in the account transactions section. Transactions usually include details about the charge such as the date, post date and amount.


For consumers who pay by mail, a payment coupon will be included. It also includes tips on how to contact your credit card issuer if you have any questions. The cardholder will also find information on how to make payments and what to do if there is a mistake in their billing statements. It also explains how interest charges are calculated.

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