Recently passed CARD Act 2009, passed by Congress, makes it mandatory for credit card lenders to simplify billing statement. Reading and understanding credit card statement is essential to avoid any future complications.

If you have not yet noticed the difference in your credit card statement then here are some important points to guide you.

Account summary is most important part of your bill. You should pay special attention while reading it. This section reflects the amount you owe, payment due date and interest charged. Mark the due date in your calendar. Put a reminder in your cell phone or arrange online payment, to avoid late fees.

Annual percentage rate (APR) is the interest charged by credit card companies. The CARD Act makes mandatory for the card issuing companies to disclose APR before opening account and in every subsequent statement. Any change of existing interest rate should be notified before it takes effect.

Credit card statement has a section that shows minimum amount due for that bill. According to the new Act, credit card bill will have a section that shows how long it will take to repay the current outstanding if you pay only the minimum amount.

Make an estimate from these figures to find out interest charged. It is recommended that you pay more than minimum amount to avoid or lower the interest burden.

CARD Act has instructed all credit card companies for maintaining fixed due date for particular customer every month. This helps to avoid confusion and maintain a fixed procedure to avoid late payment. Due date should be listed in such a way that it is easily visible.

Overdraft or over-limit expenses are now made optional. If you have opted for the facility then you may be allowed to exceed credit limit by paying additional fees. If you have opted out of the facility then you are not allowed to exceed credit limit and there is no question of additional fees.

Go through the whole credit card statement and review all transactions. If you find any transaction that you do not recognize then contact the credit card company immediately. Any fraudulent activity or disputed transaction should be notified within 60 days of error.