Understanding your credit card statement

A credit card can be a convenient tool to help you stay on top of your cashflow. And to get the best from it, it’s important to stay on top of your card payments. By always paying on or before your payment due date, you can enjoy the benefits of your card without paying unnecessary interest and fees. In this article we’ll explain how.

It's important to check your credit card statement each month. 

This is the outstanding balance on the credit card account at the end of the statement period and includes purchases, fees, any unpaid balance from the previous statement and other transactions made during the statement period.

This is the minimum amount you need to pay to avoid being charged late payment fees. It’s a good idea to pay more than the minimum if you can and the more you pay, the less interest you’ll incur. We recommend that you pay the balance off in full each month, if you can, to minimise interest charges. However, you need to pay at least the minimum amount. 

For ANZ credit cards, this is the date we need to receive payment by. If we don’t receive at least the minimum payment due by that date you may be charged late payment fees. You’ll also incur interest on your card if you don’t pay your balance off in full by the due date.

Remember, the payment due date is the latest date we need to receive the payment – so if you’re transferring money from another bank, you should allow one to two business days for the payment to be processed and appear on your credit card. 

If your credit card has interest-free days, paying the balance in full each month will ensure you don’t pay interest on your purchases.

Your statement may also include details of amounts that you need to pay immediately.

If you didn’t make at least the minimum payment due from your last statement by the due date, an overdue amount will appear on your statement (if it is still overdue). 

This is where your outstanding balance is higher than your approved limit. For example, if you have a limit of $1,000 and your outstanding balance is $1,100, your statement may show an Overlimit amount of $100. At ANZ, this amount will be included as part of your minimum payment due. At other banks, it may be displayed as a separate amount.

It’s important to pay these amounts immediately, because if you don’t it may mean your credit card provider will stop your card from working for a period of time.