How Long Should You Keep Credit Card Statements?

Credit card statements might seem like just another piece of paper to manage, but a statement is often your first line of defense against billing errors and fraud.

While you don't have to file statements away forever, holding onto them can help you protect yourself and your finances.

How long should you keep credit card statements?

Most credit card statements are worth keeping for about a year. But some you’ll want to store for up to seven years, and a few you can delete after checking them.

The minimum: 60 days

The minimum you should keep your statements is 60 days. That isn’t just an arbitrary timeline. It’s your window under the Fair Credit Billing Act to dispute a billing error. And that window starts when the issuer sends your statement.

But it can take up to two billing cycles for the card issuer to investigate, so it’s a good idea to hold onto disputed statements for at least 90 days after you file a dispute.

General rule: One year for most purposes

Whether you’re using personal or business credit cards, it’s generally a good practice to hold onto your statements for at least one year.

For personal credit cards, keeping statements for a year gives you an opportunity to track your spending and create a budget. If you’re self-employed, holding onto statements this long makes it easier to add up business expenses and deductions.

Tax-related purchases: Seven years

The IRS generally has up to three years to question your return, but several situations require longer windows, such as underreported income and bad debt deductions. If a statement backs up something you claimed on your taxes, it’s a safe move to keep it for seven years.

A tax professional can tell you what applies to your specific situation.

Major purchases and warranties: Until the warranty expires

Warranties offer protection against defective products. If you need to make a claim against your warranty, you’ll need to provide proof of purchase. If you bought the item in question with a credit card, your credit card statement can provide that proof.

Before throwing away statements, see if your card issuer offers extended warranties on manufacturer warranties.

Read more >> How to Handle and Prevent Fraudulent Charges on Your Account

Why keeping credit card statements matters

There are four key reasons to keep your credit card statements handy:

• Disputing a charge. If a merchant double-bills you or charges the wrong amount, the statement is what you’ll point to.
• Reporting fraud. A statement showing what you did and didn’t buy is valuable in a fraud claim.
• Tracking your spending. Comparing statements can show you where your money goes each month.
• Backing up tax deductions. Your statements can be a record of personal and business purchases claimed on your tax returns.

Online statements don't last forever. How far back your issuer's portal goes varies by company, with most storing statements for up to two years. Check your issuer’s policy, and save anything you need for taxes or a dispute. Once it’s gone from the portal, retrieving it might require a fee and a phone call.

How to store credit card statements safely

Your credit card statements include sensitive information that bad actors can use to steal your identity, including your name, address, and account numbers. Store them somewhere secure, and shred paper documents before you throw them out.

Digital statements

If you have an online banking account with your credit card company, your digital statements should be stored in the password-protected account portal.

That said, most credit card companies store up to two years of statements you can access from your online account or app. If you need to keep them for a longer time, consider downloading and saving them behind a password on your computer or in the cloud.

Paper statements

If you receive statements in the mail or print your digital statements, stash them in a safe place in your home. A locked filing cabinet can be enough to thwart would-be identity thieves, but a fireproof safe offers even stronger protection.

Read more >> How to Make a Budget

Bottom line

Understanding how long to keep credit card statements protects you against fraud, simplifies taxes, and provides proof to dispute billing errors.

Get a head start on tax season by setting up a dedicated folder for the current year, and switch to paperless statements if you haven’t already. Most issuers store up to two years of history you can download when needed, which means less paper to shred and nothing to lose in a move.

Staying on top of your statements makes it easier to catch issues early, but habits like paying on time and keeping your balances low are what actually build a stronger credit history. Kikoff's Credit Account reports your on-time payments to all three credit bureaus, no hard credit check required, with plans starting at $5 a month.