One of the best things you can do to main good credit card habits is to review and go through your credit card statements.
More than your balance every month, your credit card statements also give you a glimpse of your financial needs and spending habits. But, one common question when it comes to credit card statements is, how long should you keep them in the first place?
How Long Do You Need to Keep Your Credit Card Hard Copy Statements?
Many experts suggest that you keep the hard copy of your credit card statements for 60 days in case you are receiving them. The majority of credit card policies state that you got 60 days to report if your statement has some errors or mistakes.
But, there are issuers that extended their warranty policies for up to 90 days, with some stretching it for as long as one year. Consult the policy of your issuer on how to report statement errors to know the most accurate applicable length of time.
You might want to keep your credit card statements longer if these include charitable donations or business purchases. It is because of the possibility that you need to document these purchases on the taxes you are paying.
It is a must that you keep the evidence for your tax-related purchases for a minimum of 6 years in case your tax returns will be audited. While you might have access to your digital statements, still, it is a wise idea that you keep your physical statements. Although your issuer might have archived years of your credit card statements, these might not be easily accessible. There is also no assurance that your issuer will keep your old digital statements in any way.
Best Way to Store Credit Card Statement
It is important to find a secure place where you will keep all of your credit card statements to ensure that your data stays protected. As for your hard copy statements, you have to keep them in an area that is fireproof. A fireproof safe, if you got one, is your best option because it offers security and safety.
If you are worried about safe storage of your physical statements, scanning and storing them digitally is also possible. For your digital statements, see to it that you store them in a folder that is protected with a password.
As an extra security layer, see to it that you also protect your computer with a strong password. Make sure that you organize your statements properly through labeling them per month then storing them per year. Also, you can add notes to those statements that might have errors to make them easier to identify.
How Do You Dispose Your Credit Card Statements?
Security remains to be an important consideration even when disposing your statements. For your hard copy statements, it is never advisable to just put them in the trash. If you do so, your information might fall into the hands identity thieves who love scouring dumpsters. Shred your credit card statement instead before throwing them away. This way, the information on your statements won’t be readable, thus protecting your personal details.