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Join Which? MoneyIs your credit card statement as clear as it should be?
Failing to understand your credit card terms could result in extra charges and
interest
With credit card spending and outstanding balances both on the rise, it’s important you understand what you're borrowing and how much you need to pay off each month.
This information should be set out on your monthly statement, which may be posted to you or available to view electronically if you bank online or via an app.
According to the latest figures from UK Finance, credit card spending rose to £16.9bn in November 2022, a rise of 5.9% compared with the previous year.
Outstanding balances also grew by 9.4% over the same period, in what could be a sign that people are struggling to make ends meet during the cost of living crisis.
Here, we explain the key terms your statement will include, how long providers will give you to pay off your outstanding balance and which providers produce the clearest statement to understand.
What should your credit card statement include?
Your monthly credit card statement will include a list of transactions you've made since your last statement, a breakdown of your balance, your minimum payment and when it’s due, and any other useful account information.
It’s important to check your statement to make sure you recognise the transactions and understand the interest that is being charged.
- Find out more: best interest-free credit cards.
What do the terms mean?
Here are the key terms you should make a note of:
Annual percentage rate (APR) This is designed to show an annual cost of credit, including interest and other charges. It's calculated using an assumed level of borrowing of £1,200.
Your new balance This shows you how much you owe on the date your statement was produced.
Minimum repayment This is the lowest amount you need to pay towards your credit card balance each month. If you don’t pay this, you could face extra charges and it could have a negative impact on your credit score.
Credit limit This is the maximum amount of money that you’re able to borrow overall. Your ‘available credit’ is your credit limit minus any outstanding balance on your card.
Late fee This is a fee that’s charged if you fail to make the minimum repayment on time.
Overlimit fee: You may be charged if you spend more than your proposed credit limit. Some providers will notify you when you reach 95% of your limit.
- Find out more: what are the different credit card types?
How long do you have to pay off your credit card?
We asked the main credit card providers how long their customers have to make the minimum repayment once their statement has been issued.
We also asked them if they're able to change this date and how the statement is delivered. Their answers are listed in alphabetical order in the table below:
| Provider | How long do you have to pay balance after statement? | Can you change your statement and payment date? | How is the statement delivered? |
|---|---|---|---|
| American Express | 25 days | Yes | Paperless or physical, based on preference |
| Barclays/Barclaycard | 25 days | Yes. But you can't change it if you've already changed it twice in the past 12 months or if you've already changed it during the current or last statement period | Paperless, but customers can request physical copies in the 'chat' feature on the app |
| Capital One | 26 days. There are a small number of accounts booked on cashback products where customers have 15 days to make a payment | Yes | Paper or physical, based on preference |
| HSBC* | 25 days | HSBC said on its website that you can ask if you need to change your statement date | Paper or physical, based on preference |
| John Lewis Partnership Card | Either 15 or 25 days to make a payment, which is made clear in their statement | Yes. Customers have one monthly payment, which takes place on the same day each month. They can choose the most convenient day and can amend this up to three times a year. | Paper or physical, based on preference – but default is paperless |
| Lloyds Banking Group (including Halifax, Lloyds Bank and Bank of Scotland) | 25 days | Yes | Paper or physical based on preference – but default is paperless. |
| M&S Bank | 25 days | Yes | Paper or physical, based on preference |
*Information taken from provider's website.
NatWest and HSBC didn't respond to our questions about credit card statements, so we've produced the answers based on the T&Cs available on their websites.
Most providers will give you at least 25 days to pay, however some account holders with Capital One and New Day will only have 15 days, so it's worth checking your statement to make sure you understand when your payment is due.
Most providers will also let you change the date your credit card payment is due, but you may be limited to changing this just a few times per year, so it's worth thinking if you really need this changed before altering it.
- Find out more: how is credit card interest calculated?
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Listen nowWhich providers have the clearest statements?
In our annual credit card survey of the best and worst credit card providers, seven providers received a five-star rating for the clarity of their statement.
These were American Express, First Direct, M&S Bank, Nationwide, Royal Bank of Scotland, Tesco Bank and The Co-operative Bank.
And 12 providers received four stars, including Barclays/Barclaycard, British Airways, Capital One, Halifax, HSBC, Lloyds Bank, MBNA, NatWest, Post Office, Sainsbury’s Bank, Santander and Virgin Money.
The banks to score the lowest rating, at three stars, included Aqua, Bank of Scotland, TSB and Vanquis Bank.
The former version of the John Lewis Partnership credit card with HSBC received a five-star rating, however we don’t have the results of the current version of this card with New Day.
You can find out about our survey, including the methodology we used in our guide to the best and worst credit card providers.
How long should you keep credit card statements for?
There's no official amount of time you're required to keep personal credit card statements for – it's up to you. Just remember to dispose of them carefully as they contain a lot of personal information, so shredding them is ideal.
If you use your credit card for business purposes and detail spending as part of a self-assessment tax return, HMRC says that you should keep your records for at least 22 months after the end of the tax year the tax return is for.
Our advisors at the Which? Money Helpline also pointed out that if you make a large purchase, you may wish to keep the statement in case you need to use Section 75 protections should something go wrong. In addition, if you're using your credit card for transactions that might be liable to capital gains tax, then you should keep hold of your credit card statements until the asset is disposed of.
It's worth noting that most people can access their past statements through online banking and even if you're not signed up for this, most providers will provide the first copy at no extra charge.
- Find out more:what is Section 75?
How to dispute a transaction
If you don’t recognise a transaction, check with other account holders if more than one of you use the account, and for any ongoing subscriptions which may have been charged without you realising.
What's more, some businesses may use a different name on your statement to the one you recognise. According to Santander, these are the top five most commonly unrecognised transactions:
| Unrecognised company | What it could be |
|---|---|
| WLY*COMPLETESAV | Complete Savings UK, an online savings programme |
| Amazon Prime | Membership for Amazon's TV, films and next-day delivery services |
| TfL | Transport for London |
| DRI*AVG | Antivirus software subscription |
| Netflix | Online streaming service |
Source: Santander.co.uk
If you don't think you made the transaction, notify your credit card provider as soon as possible. You should give them any information you have that could help them work out what's happened.
