Expect a different statement this year credit card holders
On the anniversary of opening a credit card account cardholders can expect to receive their first annual statement that includes spending, fees and costs incurred over the past 12 months.
The UK Cards Association in partnership with the Department for Business, Innovation and Skills has developed the new annual statement.
For the first time, customers will be able to see at one glance how much they have spent in the previous 12 months and what costs and charges were made.
Credit card owners are likely to receive their first annual statement on the date the account was opened. Some credit card companies have already begun sending new statements to card customers.
Melanie Johnson, Chair of The UK Cards Association said: "Annual credit card statements will help empower customers by giving a clear view of how they've each managed their plastic over the past year.
Johnson continued: “By clearly setting out costs and charges this industry initiative could help customers get a better deal either by being more savvy about how they use their current card, or by changing to another account that's a better fit."
The new annual statements contain the same information to help customers compare cards. The time period covered, total spending, the amount repaid and any interest fees and charging incurred will be specified.
The statement will also break down point-of-sale spending, cash advances, balance transfers and the fees incurred for these transactions so that consumers are aware of how the card has been used during the year.
A wide range of benefits were provided a year ago to give cardholders more control over their accounts and this new annual statement is perhaps another initiative to give cardholders better insight into spending habits.
There are a range of different credit cards available offering great benefits to consumers so to ensure cardholders benefit best from their credit card it is important to compare them first.
Some people may struggle to keep track of their finances with credit cards, in which case prepaid cards are ideal.