Every month when you open your mailbox, your credit card bill is staring at you, waiting for you to open it up, write out a check, and mail it off for payment. While these mindless steps are all that it takes to stay on top of your payments, have you ever taken the time to really read your credit card bill? If not, you should take the time to learn what all the charges on your credit card bill are about and investigate it carefully each month to make sure that it is correct.

Interest Rates – You may see two figures listed here. One would be your annual percentage rate for interest, which is a higher number. A lower figure would be your monthly rate, which is how the interest on your card is calculated for your bill. Make sure that these numbers agree with those that were stated to you within the agreement between you and the card issuing bank.

Fees – There may be several fees listed on your credit card bill. Each year, you may be charged an annual fee, which should renew on your account creation date. Other fees that you may see listed here are for over limit charges, late payments, and fees for cash advances. If you see fees that you do not understand listed here, contact your credit card company for clarification before paying your bill.

Purchases – All purchases charged to your account over the month should be listed in this section. Look over the statement carefully and investigate any charges that do not make sense to you. This can be your first line of defense against unauthorized use of your credit card. Report any suspicious charges immediately to your credit card provider to ensure that fraudulent purchases will be covered and that you are not responsible for unauthorized usage of your card.

Cash Advances – Because they have different fees and charges related to them, cash advances are generally listed in a different section of your bill than standard purchases would be. This makes it easier to compare fees and keep a close eye on who is withdrawing cash from your account. When applying for a credit card, check the company’s policies on cash advances to assure that there are no surprise fees or charges.

Credit Limit – This is the amount of money that you are allowed to spend on this particular account. Keep in mind that any fees or penalties that are incurred will be added to this balance, and an additional fee will also be added should you go over your spending limit. Know where your account balance stands at all times to ensure that you never go past your limit. Your limit may be raised or lowered periodically, depending on your credit history with the company.

Payment Due Dates – Pay close attention to the payment due date and be sure that you mail your payment in time for it to arrive at the payment office on this date. Depending on the company with which you have your card, they may offer a grace period, but by mailing your payment later, you risk being charged late fees and additional interest on your balance. If you believe that you need extra time to make your payment, contact your company and they may provide an extension on a case by case basis, without incurring any fees.

When you understand your credit card bill, you have the capability to protect your credit card account, and assure that you are being treated fairly by your credit card company. Take the time to review your bill each month and act promptly when there are confusing or unauthorized charges made to your account. Remember, this is your job as a consumer to investigate your own charges and educate yourself on your bills.