A few minutes can go a long way
This article is the second installment of the “banking mistakes to avoid” series, which is to be continued.
Each month, you get the notice from your credit card company that your statement is ready to be paid. The statement includes all the purchases made with that credit card during the previous month’s billing cycle. We’ve grown accustomed to the digital world, making it easy to click a couple of buttons online or on an app and go on with our lives. While this is a great convenience, you might want to consider taking just a few minutes to review each statement.
If you’ve always conducted a careful review of your statement before paying it off, then this will be music to your ears. When your statement is available, it’s critical to slow down and take some time to go through each of the charges and make sure everything looks correct.
Spotting any transaction that you didn’t make is the best way to flag identity theft or billing errors on your account. Your credit card company should make it easy for you to dispute these charges before having to pay for purchases you never made. It’s important to understand the best way to contact your credit card company, such as checking the back of your card or through your online account and initiate the dispute process so that you can do this in a timely manner when needed.
Other benefits of reviewing your statement
Reviewing your statement can benefit you beyond flagging theft or disputing erroneous charges. By going through your statement, you can also identify costly transactions that might not be necessary. Are you still being billed for a subscription you never use? Are you eating out more than you thought? Looking closely at your statement is a great way to get an idea of your spending habits, stick to your budget and reign in any costly purchases you might have been making without even realizing it.
Credit cards can be a great convenience and necessary financial tool for many people. But if not used carefully, credit cards can have a costly impact. Not reviewing your statement is just one simple banking tip that can save you money.