As more people opt to use credit cards for everyday transactions and financial flexibility, one credit expert is urging cardholders not to overlook a vital resource—their monthly credit card statement.

Jacqueline Parris-Chung, manager for credit card operations at JN Bank, said too often persons view the credit card statement as just a bill, leading to overspending and missed opportunities for smarter money management.

“Too often, people get into trouble not because they used a credit card, but because they didn’t fully understand the terms laid out right in front of them,” she said.

Breaking Down the Credit Card Statement

One of the most important figures to pay attention to, she said, is the statement balance or the total amount owed at the end of the billing cycle, which is usually about 30 days. She explained that paying this off in full each month allows users to take advantage of credit without incurring any interest.

Parris-Chung said that while some consumers focus on the minimum payment, also listed on the statement, to avoid late fees and delinquency, it is only a short-term fix that can lead to long-term debt if not managed carefully.

“Minimum payments are designed to keep your account in good standing and help you avoid delinquency, but if you only pay this, it could stretch your repayment timeline dramatically, keeping you in debt for years and costing you far more in interest,” she said.

The JN Bank credit card operations manager also shared that while knowing the payment due date is important, understanding the statement issue date is just as valuable. She explained that the payment date is the final date of payment to avoid penalty fees, while the statement issue date ends one cycle and starts another one. Knowing the latter, she noted, can help with cash flow.

She explained that any new purchases made on the day the statement is issued, that goes through before midnight, can still show up on that statement. A purchase made right after the statement is issued won’t however show up on the bill until the next cycle. “That means you could get a full extra month before that charge is due (depending on your card’s due date) and you need to pay it off, which can really help with managing your money,” she explained.

She cautioned that if a payment is made on the statement issue date, it will only count towards reducing the balance, but doesn’t change what’s owed on the current statement, because that statement has already been finalised.

“If you don’t pay the full balance from the previous statement by the due date, you’ll be charged interest. Even if you made a payment on the statement date, interest can still be added, including on new purchases, because you lose the grace period until your full balance is paid off,” she said.

Credit card statements also outline the credit limit, financial limit and cash advance limit. These are figures that can significantly impact a borrower’s creditworthiness. Parris-Chung explained that both the credit limit and the financial limit refer to the overall spending cap a person can charge to their credit card without incurring penalties, provided the funds are still available. The cash advance limit is the portion available for cash withdrawals from ATMs or bank counters, through the credit card. However, this limit typically comes with different, and oftentimes, less favourable terms.

“Keeping spending well below the credit limit is a sign of responsible credit use. It shows lenders that you’re in control of your finances and not relying too heavily on borrowed money, which can make you a more trustworthy borrower,” she shared.

The credit expert also emphasised the importance of reviewing the interest, payments, and charges on the credit card statement. These outline all payments made since the last cycle, as well as any fees or penalties applied to the account. Understanding these details, Mrs Parris-Chung noted, can help cardholders stay informed about how their debt is being managed and what it is costing them.

Equally revealing, she stressed, is the transaction details section, which lists every purchase made during the billing cycle. In addition to being a record of activity, she informed that this section could help cardholders spot unauthorised charges, track spending patterns and reassess financial habits.

Emphasising that credit cards shouldn’t be feared, Parris-Chung noted that when used responsibly and with clear intention, they can serve as powerful tools for managing money effectively. She also highlighted that credit cards enhance security by reducing the need to carry large amounts of cash, lowering the chance of losing it or having it stolen.

“Credit cards offer convenience, security and even savings, but only when you understand how they work and use them wisely,” she said. “Learn to read your statements, pay attention to your spending habits and use that insight to make smarter financial choices.”