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Debt and credit

Statement balance

What you owed on a credit card when the billing cycle closed, as printed on that month's statement.

What It Means

The statement balance is the total you owed on a credit card at the moment the billing cycle closed, and it's the balance printed on that month's statement. That total is whatever you carried over, plus the purchases, fees and interestInterest rateThe yearly percentage a lender charges for borrowing money, not counting fees; the APR adds certain fees to show a fuller cost. See more posted during the cycle, minus the payments and credits. The figure stays fixed until the next statement, even as new charges change your current balanceCurrent balanceThe total you owe on a credit card right now, including charges and payments made since your last statement. See more. Paying it in full by the due date is what keeps purchases interest-free on a card with a grace periodCredit card grace periodThe time between a card statement and its due date when purchases collect no interest, as long as you pay the full statement balance. See more.

Try It: Pick Your Goal and See Which Balance to Pay

Maya's card: statement balance $640 on June 5, due June 30. She's since spent $180, so today she owes $820. The $35 minimum is an example.

Pay by June 30$640

The statement balance. Paid in full by the due date, it keeps the grace period on purchases.

How People Say It

  • "I always pay the statement balance, never the current one."
  • "The statement said six forty, but the app says eight twenty."
  • "I paid it off, so why does my credit report show a balance?"

The Breakdown

A short example. Maya's statement closes on June 5 showing $640, with a due date of June 30. On June 12 she spends $180, so her app shows a current balance of $820.

Where it goes wrong. Maya assumes she has to pay the $820 to avoid interest, which leaves her short on rent, so she pays only the minimum. That's the costly choice: the statement balance of $640 was all she needed to pay to keep her purchases interest-free. Paying only a $35 minimum instead leaves $605 to collect interest, and she loses the grace period, so the $180 starts collecting interest too.

What to watch for

  • To avoid interest on purchases, pay the statement balance in full by the due date.
  • Paying the current balance is fine too; it clears newer charges early.
  • Your credit reportCredit reportA record of how you've borrowed and repaid, kept by credit bureaus and sold to lenders, landlords, insurers and others who decide whether to deal with you. See more usually shows the statement balance, since that's what card companies report near the end of the cycle.
BalanceWhat it isChanges when
Statement balanceOwed when the cycle closedOnly at the next statement dateStatement dateThe day a credit card's billing cycle closes and the statement balance is set; the due date comes afterward. See more
Current balanceOwed right nowWith each charge, payment or fee
Minimum paymentLeast you can pay and be on timeSet on each statement

Good to Know

The CFPB explains that if your card has a grace period and you aren't carrying a balance, paying the full balance by the due date avoids interest on new purchases. Under Regulation Z (12 CFR 1026.7), each statement must show the balance, the due date, the minimum payment and a warning about paying only the minimum. myFICO notes that a card you pay in full every month can still show a balance on your credit report, because issuers usually report the statement balance before your payment arrives.

FAQ

Should I pay the statement balance or the current balance?

Paying the statement balance in full by the due date is enough to avoid interest on purchases when your card has a grace period. Paying the current balance also works and clears newer charges early.

Why is my statement balance different from my current balance?

The statement balance is frozen at the end of the billing cycle. Your current balance keeps changing with every purchase, payment, refund or fee since then.

Is the statement balance what gets reported to the credit bureaus?

Usually. Experian and myFICO say card companies generally report around the end of each billing cycle, when the statement balance is set, so it's the figure that shows up on your credit report.

Do It in Buhata

Bills, Reminders

With Plus, add the card to Bills with its due date, and set a Reminder on the statement date to pay that month's statement balance in full.

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Related Terms and Categories

  • Current balance

    The total you owe on a credit card right now, including charges and payments made since your last statement.

  • Statement date

    The day a credit card's billing cycle closes and the statement balance is set; the due date comes afterward.

  • Credit card grace period

    The time between a card statement and its due date when purchases collect no interest, as long as you pay the full statement balance.

  • Credit utilization

    The share of your available revolving credit you're using, found by dividing your card balances by your credit limits.

  • Late payment

    A payment that reaches the lender after its due date; on credit reports, one that's 30 days or more past due.

Debt and credit

Sources

Experian, "What Is the Statement Balance on a Credit Card?"; Experian, "Statement Balance vs. Current Balance: What's the Difference?"; Chase, "Statement Balance vs. Current Balance"; Capital One, "Statement balance vs. current balance: How they differ"; Consumer Financial Protection Bureau, "What is a grace period for a credit card?"; myFICO Support, "Why does my credit report show balances when they're paid off each month?"; Experian, "When Do Credit Card Payments Get Reported?"; CFPB, Regulation Z, "ยง 1026.7 Periodic statement"

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