Take a look at your monthly credit card statement, and you'll see that it contains a great deal of important information. If you compare statements from several different companies, you'll notice that although they may look different, there are many common elements. So what is really important to look at when you get your statement each month? There are several key pieces of information both on the front and the back of the statement that will help you better understand your credit card account. Ready to demystify your credit card statement? You may cringe at the thought of opening it each month, but understanding all the numbers and the fine print is important - on both the front and the back.

The Front of Your Statement

Annual Percentage Rate

The Annual Percentage Rate (APR) is the amount of interest you will pay on an annual basis. The APR is an important factor in calculating your monthly finance charges. The higher this rate, the more money it will cost you to use this credit. On most credit card statements, the APR is presented as both the APR and either a Daily Periodic Rate or a Monthly Periodic Rate.

 Minimum Payment Due

Each bank or credit card issuer determines your monthly payment by using a formula that is specific to their company. One bank may determine your monthly payment amount by using a formula of 2% of the outstanding balance, while another bank's formula may be 2.5% of the outstanding balance. You must make at least the minimum payment by the due date to protect your credit reputation. Late payments are recorded on your credit report.

The minimum payment is the amount you must pay on credit card accounts each billing cycle to remain in good standing with your creditor. The minimum payment is usually determined by taking a percentage of your new balance.