Friday, October 29, 2010

Soon You’ll Understand Your Credit Card Statement

Part of the new credit card rules to take place officially on July 1, 2010, include credit card statements that are less confusing and easier to read. Consumers have been complaining for years that the phrases used on their statements make it next to impossible to understand the information the statement contains and is therefore very misleading. In addition to the way content is worded, consumers have complained that critical information doesn’t appear on the statements every single month.

Improvements to the credit cards statement will include:

Key Changes in the Card Terms - Any changes must show up in the table shown at the top of every credit card statement. This table includes the interest rate, total balance owed, last month’s balance, current balance and amount of last payment. It will now show any changes including the increase of your interest rate and the date it will be effective.

Detailed Transactions- Details about each transaction that took place during the billing cycle, including a reference code, transaction date, post date, description of transaction, and amount charged for each purchase, will now appear on each monthly credit card statement.

Fees - All fees incurred during the billing cycle and how they were calculated will be included.

Interest Charges – A detailed listing of all of the interest charges during the billing cycle will be included.

Totals Year To Date- Created to show consumers how much they have spent throughout the year on fees and interest rates and must be included on all credit card monthly statements, new to the credit card changes in July 2010.

Make sure to review your credit card statements every month to watch for any changes or potential problems. The earlier you spot them, the easier they are to correct or improve.

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