If you've ever tried to look at your credit card statement then you probably know it can be a little confusing to follow the first time. It is highly important to go over your statement each month to keep track of your spend and watch for any suspicious activity.

Have you ever sat down and actually read every detail on one of your credit card statements?? Do you understand every printed detail that appears on your credit card?

In order to understand your monthly spending, it's essential that you read the fine print on your statement. It will help you to practice proper credit card management. You may be surprised by what you find when taking a good look at your statement and you discover just how your credit card works.

What is a credit card statement anyway?

A credit card statement is a list of all of your transactions during the previous month's use of your credit card. Note that the month on the statement may be from the 10th of one month to the 10th of the next month. Credit card companies don't necessarily bill you according to calendar month. Included on the statement are the total outstanding balance, payment due and due date.

A credit card statement has two parts. One is the payment slip which you detach and enclose with your payments. People usually don't read the second part of the statement. This is the part that lists all your credit card activity. This is the part which we are going to examine.

Name and address: This is the card holder's name and address that the credit card company has on file. If you have a change in your address or phone number, you should notify your credit card company in writing of the change and request an acknowledgement letter or send it with a return receipt requested.

Reference number: This number is the number that the credit card company uses to reference their records. If you ever dispute a charge on your statement, this is the number you will need.

Credit card number: This is the 16 digit number that's shown on the face of your credit card. American Express or Amex is an exception to the rule and only has a 15 digit number. This is the number you should enter in the memo field of your check when you send in your payment, or if you pay by any other method such as by phone or online.

Credit limit: This is the maximum amount your credit card issuer allows you to spend. If you spend more than this amount you will be over your limit and you may be charged a penalty for this depending on the credit card company. The credit card company may consider increasing your credit limit if you pay more than the minimum payment and are on time every month. Paying more than the minimum amount each moth and paying on time can help you to get your credit limit increased.

Available credit limit: This is the difference between what you have already spent on your credit card, or your total balance due and what you have left to spend until your reach your credit limit. For example: if your credit limit is $5000 and you have already had a balance due of $4000, your available balance will be $1000.

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