What is a statement credit balance?

A credit balance on your billing statement is an amount that the card issuer owes you. Credits are added to your account each time you make a payment. If the total of your credits exceeds the amount you owe, your statement shows a credit balance. This is money the card issuer owes you.

What is the difference between statement balance and outstanding balance?

Statement balance: The amount you owed on the day the statement was prepared. It includes any finance charges and late fees. Previous statement balance: What you owed on the day your previous statement was prepared. Outstanding Balance: The amount you owe the Bank on purchases made with your credit card.

Should you pay off your statement balance or current balance?

While paying your statement balance by the due date is typically enough to avoid interest charges, you should consider paying your current balance in full, which could improve your credit utilization ratio.

Why is my statement balance lower than my current balance?

The reason for the discrepancy is that your credit card statement balance is the amount you owed on the closing date of the last billing cycle. Your current balance includes any purchases you’ve made in the current billing cycle, plus any pending purchases that haven’t been applied to your available credit yet.

Should I pay current or statement balance?

While paying your statement balance by the due date is typically enough to avoid interest charges, you should consider paying your current balance in full, which could improve your credit utilization ratio. …

Should I pay outstanding or statement balance?

Paying the full statement balance is a smart way to escape interest charges. Now, you don’t have to pay the outstanding balance to steer clear of interest and fees. Paying the statement balance will take care of that. But if you pay the entire outstanding balance, you can lower your credit utilization ratio.

What does it mean to have a balance on a credit card?

Your statement balance is the amount of new money you owe on a credit card as of the last statement. Each month, your credit card company keeps track of all of the charges that you’ve made.

Why is my current balance higher than my credit card statement?

These transactions are reflected in the current balance. The current balance could be higher or lower than your statement balance depending on the transactions you’ve made. For example, if a payment has posted to your account since your billing statement was printed, your statement balance will be higher than your current balance.

What does the balance on a bank statement mean?

In these situations, your statement balance is your new charges accrued during the last month (statement period). Your total balance is what you owe from last month, as well as any other previous statement periods. For example, let’s say that your statement periods run in line with each calendar month of the year. In May, you accrue $50 in charges.

Where do I Find my Balance on my credit card?

Your statement balance will also be printed on your monthly credit card statement. These two balances may be the same or one may be higher than the other, depending on the purchases you make. For example, let’s say you spent $500 during a billing cycle, then another $50 after your cycle ends.