How long do you keep credit card statements?

How long do you keep credit card statementsCredit cards are part of everyday life for most people. It allows us to pay for goods and services received at a later date. By June 2018, 83% of Americans between the ages of 30 and 49 years old owned a credit card. MOA Accounting found out that statistically-speaking Visa was the leading U.S. credit card company, while the leading issuer was Chase. Currently, there are about 336 million Visa credit cards in circulation.

Part of owning a credit card is receiving bank statements every month, showing you your spending, minimum balance owned, interest rate, as well as an itemized list of things you bought. But many people wonder how much time they should hold onto those credit card statements?

keep credit card statements for 2 yearsMost people have multiple credit cards, using various ones for different purchases as well as reward points, cash back, or other benefits they get with one but not the other. So imagine getting multiple credit card statements in the mail, or email inbox, month after month. It can lead to a piles and piles of paperwork at home or in the office.

Generally speaking, MOA Accounting suggests keeping statements for about two months, since that’s usually how much time you have to dispute billing errors on your credit card. After that, legally-speaking, your credit card issuer isn’t required to handle these disputes. Also, credit card statements are stored on your personal online banking portal, so if you need to look back on an itemized list you can do so by signing in.

tax-related purchasesIf you purchased items with an extended or long-term warranty on them, then keep credit card statements for the time the benefit is still effective. It’s typically anywhere for from three months to a year. The next thing to think about is your tax-related purchases.

You may buy things through the year that you’d like to deduct come tax season. This can be items that are considered business expenses such as computers, phones, and other supplies you need for work purposes.

Donations, MOA Accounting are treated the same way since you can deduct those on your tax returns. In these types of cases, keep your credit card statements for about six years.

Some people prefer the idea of having a credit card statement available to help them to visually get the picture of how much they really spend. With paper statements, it’s easier to see where you spend most of your monthly budget, and perhaps can help make it clearer on where to save. Three to six months of your statements should help you get a better sense of your financial health.

When it comes to storing statements, make sure they’re well-labeled with matching months and years. Keep them in a safe place, with other financial documents. Once you’re ready to get rid of them, don’t just throw them in the trash since it has confidential information. Instead, shred your credit card statements to prevent possible fraud.

For more assistance, call the Miami accountants at 305.868.7620