how account statements are used
account statements should be scrutinized for accuracy and historical statements are critical for budgeting a credit or loan account statement for example may show not only the outstanding balance due but the interest rate charged on that debt and any fees that have been added during the payment cycle this can include late charges for payments not received by their due date as well as overdraft fees when bank account holders overspend your account statements are a window into your finances the statement may also list financial information that relates to the account holder such as their credit score or the estimated time it will take to completely pay off a debt via installment payments alerts and notices to the account holder may also appear on these statements calling attention to matters with the account that need to be addressed such unusual charges that should be reviewed and verified account statements are often recurring and should arrive at a set cadence contact your account administrator to best understand when statement periods occur and when you may expect statements red flags on account statementsanomalous items on an account statement may be a sign the account has been compromised perhaps through a stolen credit or debit card or through identity thieves who gained access to account information for example an account holder or the financial institution might spot a charge for concert tickets or a luxury item that seems out of the ordinary account holders may be able to dispute such out of place charges and file a claim that they did not make the purchase themselves reviewing your account statements as they come in is a good financial habit that can catch these red flags before they become a financial disaster electronic statements vs paper statementsaccount statements may be delivered electronically or via paper electronic account statements are delivered digitally in formats like pdf html or through online portals they offer convenience reduce impacts to the environmental and can often be easily stored the primary aim of electronic statements is to reduce paper usage save space and reduce the risk of unauthorized access compared to paper statements electronic statements may be password protected and delivered through secure channels reducing the risk of theft or interception electronic statements may also be more easily shared by other individuals needed copiespaper account statements are printed on paper and sent via postal mail to the account holder s physical address proper disposal of paper statements is crucial to protect sensitive information and prevent unauthorized access to personal financial information paper statements do not require an internet connection or electronic device to access this can be beneficial for individuals in areas with limited connectivity or those who prefer to review their financial information offline in case of technical issues or loss of access to electronic records both temporarily or permanently individuals can rely on their paper statements as a secondary source of information 