How Long Should You Keep Credit Card Statements?

Your credit card statements are an important financial record, but no one wants to end up with mountains of paperwork. After looking them over, the question many people have is just how long should you keep credit card statements.

Although you can usually get rid of statements shortly after receiving them, there are exceptions. In a few select situations, throwing away an old statement too soon could cause issues for you later. Here's everything you need to know about when to keep your credit card statement and when to get rid of it.

You usually don't need to keep your credit card statements, because card issuers let you download them from your online account. If you want a little extra security, you can hang on to credit card statements for 30 to 60 days. That way, you can confirm your payment was received and there were no issues with any charges.

There are, however, situations where your card issuer's records may not go back far enough, or where it simply makes sense to hang on to a credit card statement. If any of the following are true, consider keeping your statement for the time being.

It contains credit card transactions related to your taxes

If you charged business expenses or any other tax deduction to your credit card, keep that billing statement and any other associated receipts for seven years. The IRS can audit your tax return for up to six years. By keeping tax-related documents for seven years, you protect yourself if you're ever audited.

It contains a purchase that's eligible for extended warranty coverage

Some of the best credit cards extend the length of the manufacturer's warranty on eligible items. In this case, you should keep the statement with the record of the purchase until the extended warranty period ends.

For example, let's say your credit card adds one year to the manufacturer's original four-year warranty. To use extended warranty benefits, you may need to provide proof of the original purchase. That means you'd need to keep the statement and receipt for five years, assuming your card issuer's records don't go back that far.

It contains a transaction that's eligible for purchase protection or return protection

You may want to hang on to a statement if your card has purchase protection or return protection that applies to any of the transactions. These protections usually last 60 to 90 days, so you could likely get the statement with the purchase in your card issuer's archives. But saving the statement makes it a bit easier, since you won't need to go searching for it later.

Credit card issuers keep downloadable copies of your old credit card statements. If you need to review a previous statement or get proof of a specific transaction, you can go to the statements section of your online account.

One thing you should check is how long your card issuer will keep statements available for you, because this can vary. For example, Citi lets you access statements for the last two years, whereas Chase lets you access statements for seven years. If you'll need a statement for longer than the credit card issuer will keep it around, you should save it yourself.

It's good to have a routine you follow when you get your credit card statement. The right routine will help you catch any mistakes or fraud and build a high credit score from on-time payments. Here are a few steps you can follow after receiving your statement every month:

Review the transactions to verify they're legitimate

Look for charges you didn't make, including duplicate charges or potential credit card fraud. Check that the amounts are accurate, as well.

LEARN MORE: How to Read Your Credit Card Statement

If you notice anything that you don't recognize, contact your card issuer to dispute the credit card charge ASAP. You aren't responsible for fraudulent charges, but the Fair Credit Billing Act says you need to report them within 60 days to be protected.

Send in your payment to the card issuer

Make sure to do this by the due date to avoid a late fee. It's best to pay the entire statement balance whenever possible. If you pay in full, you won't be charged any credit card interest on your purchases.

With most card issuers, you can submit your payment online, by mail, or over the phone. You can also set up automatic payments so you don't need to submit the payment yourself every month.

Save or dispose of the statement

After you've gone over your statement, decide if you want to hang on to it or get rid of it. If you save it, make sure to keep it somewhere secure, or download a digital copy.

To safely dispose of credit card statements, shred them. You can buy an inexpensive shredder online or from an office supply store. Another option is to visit a shredding company. It's worth taking this extra step to prevent your information from falling into the wrong hands and reduce your risk of identity theft.

LEARN MORE: How to Avoid Credit Card Frauds and Scams

Credit card companies give you the option of receiving paper statements in the mail or paperless statements by email. Paper statements are the default. If you want to switch to paperless, you can do so in your online credit card account or by calling the number on the back of your card.

For most people, paperless credit card statements are the better option. They provide all the same information, and you can download them if you want to save them. You also don't need to worry about disposal like you do with physical statements.

Is there any reason to go with physical statements? If you want to have paper copies for your records, then it makes sense to stick to this option. Physical statements are also a good choice if you're more likely to review an actual document. Some people find that getting a physical statement in the mail is an important part of their routine, and they don't pay as much attention to paperless statements.