Ask yourself this. Why do you have a credit card? The most important reason is to build your credit, not to put off bills for another day.
Therefore, the main reason to keep your credit card statement is so that you can see exactly how much you spent on the card in a given month. Your statement will also show any fraudulent charges and provide proof of legitimate transactions.
You’ll be able to see exactly how much money has gone through your account since the last statement. Let’s dive into credit start statements and how long you should keep them.
What Are Credit Card Statements?
Credit card statements – sometimes known as a billing statement – are just what they sound like. They’re a record of your credit card transactions and they show the date, amount, and merchant name. The statement will be mailed to you or emailed to you at least once every month.
If you don’t receive one, check online or call your credit issuer to see if there was an issue with your account and how it was resolved. Credit card statements can also be accessed by logging into your account on the issuer’s website—just look for Transaction History under “All Accounts” or something similar.
History of Credit Card Statements
In the early days of credit card use, people had to track their balance through receipts, which were often inconvenient and hard to keep organized. The first person to come up with a way to solve this problem was Frank McNamara, who came up with the idea for his now-famous Diner’s Club card in 1949.
This was the first time that someone had created a way for people to pay for things without having to carry cash or write checks—but how would merchants know how much money they owed? How would they know who had paid and who hadn’t?
The answer was simple: they would just keep track in their heads! That’s right—credit cards didn’t have statements until 1966 when BankAmericard (now Visa) introduced them as an optional service.
Banks realized that if they gave customers statements, then they could charge them interest on any purchases made after those accounts were opened.
In the 1970s, banks began mailing out paper statements every month, but in the 2000s, banks started switching over entirely to electronic statement delivery systems like those used today by Visa and MasterCard.
Can You Access Credit Card Statements Online?
You can access your credit card statements online, but you’ll need to check with your bank or credit card company to see if they offer this service. You might also be able to log in through the company’s website and look for it there. If you can’t find it, ask your bank or credit card company if they have a way for you to view old statements from home.
If all else fails and you still can’t access any old statements from home, don’t worry! There are plenty of other ways that we’ll talk about in this post.
Know the Statute of Limitations on Credit Card Debt
Statute of limitations is a term for the time limit for filing a lawsuit and varies from state to state. The statute of limitations on credit card debt is usually between 3 and 6 years.
In some cases, it could be longer, especially if you owe money on large purchases, such as cars or homes.
Why You Need to Keep Some Credit Card Statements
Firstly, you need credit card statements to spot fraud. If you suspect that someone has stolen your credit card and used it to make purchases, your statement is the first place to check.
You also need them to track spending habits. Keeping your statements allows you to see how much money you spend on certain things over time. This can help with budgeting and planning for major expenses, like a new car or home remodel.
Finally, you need them for receipts. Credit card companies don’t require that merchants give customers a paper receipt when they pay with plastic. So if something goes wrong with an online purchase or at a store where employees don’t issue receipts, having a copy of the payment made on your statement could be helpful if there’s ever an issue later on down the line.
Choose a Secluded Place for Your Credit Card Statements
It’s important to keep your credit card statements in a safe place. Don’t leave them in plain sight or out on your desk where anyone can see them. You shouldn’t stash them in your car, either—if it gets broken into, you could be at risk for identity theft.
If you have a safe at home, that would be ideal. Otherwise, consider keeping them locked away in a filing cabinet or drawer.
You shouldn’t forget about the mailbox, either! If someone breaks into it and steals the paper copies of your statements, they might also find their way onto the internet by scanning documents they find there (and then selling those documents). The best thing to do is shred any financial information before putting it in the trash so no one else can get hold of it.
Receipts and Credit Cards
As you create your filing system, it’s important to take into consideration how long you should keep credit card statements.
Credit card statements should be kept with receipts—and in fact, they’re actually required by law in some cases. If you want to deduct any expenses from your taxes, it’s important that you keep track of all receipts throughout the year.
You can include them with your credit card bill or store them separately in a folder or box with other tax-related documents. Keeping these things together will make it easier when filing time comes around each year!
Credit card statements can help you track your spending habits, too: if something seems off about how much money is being spent on groceries versus dining out and drinks at bars, looking through old bills can give an indication of whether something has changed since last month (or even last week).
This could be helpful when trying to identify fraud or account errors before they become too expensive for consumers—it might be worth checking out if someone has been using their card without authorization!
Credit Card Statements Can Help You Spot Fraud
Credit card statements can help you spot fraud or account errors. If you notice charges on your credit card statement that weren’t authorized by you, contact the credit card company immediately so they can investigate and cancel those charges.
Credit card statements can help you track your spending habits so you can budget better. Look over your past few months’ worth of purchases and compare them to your income (if possible).
Then set some financial goals for yourself—for example, “I want to pay off all my debt,” or “I want to save up $1,000.” The more detailed and specific these goals are, the better chance they have of being achieved!
Your credit card statement is a good place to keep all those receipts from major purchases like furniture or appliances; this way they won’t get lost in the shuffle when it comes time to file taxes next year.
Credit Card Statements Can Help You Budget Better
Credit card statements are a great way to track your spending habits. As you can see from the example above, they show you not only what you spent, but also how much of each type of expense there was during that billing period.
This is helpful because it gives you insight into where exactly your money goes each month and helps you understand why things like groceries and gas cost so much when compared to other expenses.
Credit cards should be there to help you build good credit to build wealth, for example, by buying a house. They should be paid back as soon as possible. Doing your everyday spending on your credit card can leave you unable to budget.
Your Credit Card Statement Can Make It Easier to Do Your Taxes
If you’re the type of person who has trouble keeping track of receipts for major purchases and other items, your credit card statement is a great place to store them. Your statement will also help you keep track of your spending habits over the course of the year, which can be useful when planning your budget for next year.
There are also a lot of benefits to having multiple credit cards, but only if you keep track of them and pay them back on time.
In addition to keeping a record of large purchases and other expenses, your credit card statement will prove helpful when filing taxes. The interest paid on your credit card may qualify as an itemized deduction on Schedule A (Form 1040), so make sure to keep all relevant receipts and documents in case they’re needed by tax authorities!
Your Credit Card Statement Is a Good Place To Keep Your Receipts for Major Purchases
Your credit card statement is a good place to keep your receipts for major purchases. It’s also a handy way to track spending and provide documentation of the purchase if you need it later. It’s important that you learn how to read your credit card statement.
Here are some reasons why you might want to keep your statements:
- For tax purposes
- For tracking purchases
- For insurance purposes
- For warranty purposes
They are also good for tracking spending. If you have a lot of things in your life that requires maintenance and repair, like cars or appliances, keeping the receipts for those purchases can be a good idea. It’s easy to lose track of what needs fixing if you don’t keep track. Maybe affording repairs to your house and car is part of your 2022 financial goals.
Keep Credit Card Statements Until You’re Sure You Won’t Need Them for Anything
The simple answer to how long to keep your credit card statement is, “as long as you have them.” Credit card statements are useful for many reasons. You can use them to track your spending habits, spot fraud or account errors, and keep receipts for major purchases.
The longer the statement stays in your file cabinet, the better chance there would be of it being useful if something comes up down the line.
Keep in mind that not all credit card companies will send out annual statements anymore. Those who do often don’t send them out until after they’ve been paid off.
So if you’re using a debit card or prepaid gift card instead of a traditional credit card (and even if you are using a traditional credit card), there’s no reason why you need to hang on to old statements indefinitely either—but at least three months worth will come in handy when tax time rolls around next year!
What About Business Credit Card Statements?
The short answer is it depends on your business. The length of time you need to keep business credit card statements varies depending on the type of business you have and the laws in your state. If you have a small, simple business, you may only need to keep your credit card statements for a few years at most.
However, if you have a larger company with many employees and a lot of expenses on your credit cards, then it’s best to start keeping these statements for longer periods of time—at least seven years.
It’s important to note that the length of time that businesses can legally be required to keep their financial records varies greatly from state to state. You should consult your local government agency or attorney general’s office for more information about how long they expect businesses like yours to keep their financial records
Credit Card Statements Are Important
As we’ve seen, there are many reasons to keep your credit card statements. If you’re still unsure about whether it’s worth it, try contacting the company that issued your card and asking them what they think is best for individuals who want to keep records of their transactions for tax purposes.
Hopefully, this article has helped answer some questions you had about how long these documents should be kept before being discarded!
If you’re interested in learning more about our credit card coaching, be sure to contact some of our credit coaching staff today.
