Each month that your credit card is open, you’ll receive a monthly billing statement detailing your credit card activity. Your credit card statement includes a list of transactions you’ve made, fees you may have been charged, and payments you’ve made to your account.
Below, you can find out how long you should hold onto your credit card statements.
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How Long Should You Hold Your Statements
Generally you should plan to keep these bank statements for at least one year. Whether you keep your files as a hard copy or a digital copy be sure to keep them in that’s easy accessible area, but not in plain sight.
You may choose to keep an electronic format in a bookkeeping program or your own spreadsheet. After a one year period, it’s safe to shred and discard these statements.
Why You Should Keep Your Statements
Bank account activity should be reviewed regularly for instances of identity theft and debit card fraud. Keeping statements provides verification of illicit activity that can be used to recover any damages.
You may also use bank statements to verify income and transaction activity, such as charitable contributions and business expenses that you may need for tax returns. Bank account statements confirming large purchases or payments may also be worth keeping.
Shredding automated teller machine receipts once you reconcile them with your account records. Similarly, deposit and withdrawal slips can be shredded once transactions are verified with the monthly statement.
How to Shred Your Statements
When you have determined to shred your statements make sure that you completely shred them. Just ripping your documents in half will not prevent thieves from learning your information. If you have a shredder at home you can do it yourself, however you may have to hire a service, especially if you have a large number of documents.
If you cannot shred it yourself check with your bank as many offer shredding services.
Conclusion
Keeping your credit card information up to date and organized is incredibly important in maintaining your finances. If you choose to do so make sure you know exactly what you are shredding and how to do so.
Hopefully after reading this you understand how and why to shred your documents!
Additionally, If you are interested be sure to check out our list of bank bonuses and CD rates!
