What is a statement balance? This question is about Credit Cards

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What is a statement balance?

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This question is about Credit Cards

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WalletHub, Financial Company

@WalletHub • 05/18/20

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A credit card statement balance is the total amount of all purchases, fees, and interest charges during a credit card billing cycle, minus any payments made. Cardholders must pay the full statement balance by the due date to avoid interest charges. You can find your statement balance on your monthly credit card statement, along with the current balance, minimum payment, and due date.

It’s important to note the difference between the statement balance, the current balance, and the minimum payment on a credit card. The current balance is an ongoing tally of charges, minus any payments you’ve made, up until the present time. The statement balance, on the other hand, is a similar tally that ends on the closing date of a credit card billing cycle. Usually, the current balance is higher than the statement balance for that reason. The minimum payment is what you must pay to keep your account in good standing and avoid late fees. If you only pay the minimum payment every month, you’ll be charged interest daily on the remaining unpaid portion of the statement balance. And if you pay the current balance instead of the statement balance every month, you’ll be paying for new charges sooner than you have to.

To avoid interest charges – and to not pay for things sooner than you have to - make sure to pay your last statement balance in full by the due date every month. If you don’t, interest will begin accruing daily, and you will lose your grace period until you pay the statement balance in full for two months straight.

This answer was first published on 05/18/20. For the most current information about a financial product, you should always check and confirm accuracy with the offering financial institution. Editorial and user-generated content is not provided, reviewed or endorsed by any company.

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Patrick Murphy, WalletHub Analyst

@stpatrick1982 • 02/13/19

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The statement balance is the amount you currently owe and it's printed on your most recent credit card billing statement.

This answer was first published on 02/13/19. For the most current information about a financial product, you should always check and confirm accuracy with the offering financial institution. Editorial and user-generated content is not provided, reviewed or endorsed by any company.

Do I have to pay the current balance or statement balance?

A credit card’s statement balance is what you owe at the end of a billing cycle, while the current balance is how much you owe on your card at any given time. To avoid interest charges, pay your statement balance in full by the due date monthly – there’s no need to pay your entire current balance in most cases.

That said, it’s important to understand the differences between these two amounts, and when...

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What does a negative balance on a credit card mean?

A negative balance on a credit card means that your balance is below zero. In other words, your credit card company owes you money rather than the other way around, meaning that you’ve paid more than your total balance due. Credit card companies generally prevent you from paying more than you owe, especially online. But if you pay by check, you might get around the policy. You’ll see the negative balance on your monthly statement as...

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What happens if you overpay your credit card?

If you overpay your credit card balance, the payment will result in a negative account balance, which means the credit card company will owe you money. The next time you make a purchase with the credit card, the amount you overpaid will count toward it.

If you accidentally overpaid your credit card and would like a refund, you can submit a written request to your credit card company. Federal law requires a refund to...

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