Credit card customers will be getting a different sort of statement through their letterbox this year, the UK Cards Association has announced.
There are currently 31 million card users in the UK, and they are set to see a new type of credit card statement for the first time this year.
The new statements are designed to make it easier for credit card customers to see how they have been using their card in the past year.
It has been designed by the UK Cards Association, in a partnership with the Department for Business, Innovation and Skills.
The statement will feature a range of details about the credit card, including the total spend on the card, the amount repaid, and any charges or interest fees incurred.
“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,” Melanie Johnson, Chair of The UK Cards Association.
“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.”
Each credit card company’s statement will include the same information, making it easier for customers to compare different cards.
Some credit card companies have already started sending out the new statements, while other customers will see their first annual statement on the anniversary of the date the account was opened.
As well as total spend and amount repaid, the new statements will also show customers exactly how they have used their card in the last 12 months.
This will be done by providing details of point-of-sale spending, and any cash advances or balance transfers. These types of transactions will also come with details of any interest fees or charges incurred.
As well as transactions made in the UK, the new statements will also provide information on any foreign transactions, and the charges they incur.
The new statements will certainly make it easier for cardholders to manage their credit card spending, but using a credit card can still make the debt add up.
Another option is a prepaid card. These work in much the same way as a credit card, but are not tied to a bank account of any kind.
Not only does this make it impossible to build up debt, as you can only spend the amount you load onto the card, but you are in no danger of being the victim of fraud.