Paying the statement balance from the lates will take care of that. You don’t have to pay the entire outstanding balance to steer clear of interest and fees. Paying the full statement balance is a smart way to escape interest charges. Avoid paying interestīut if you want to avoid paying interest, you should pay the entire $2,000 statement balance. That way you at least won’t be charged any late fees or penalty APR. At the very least, you should make the minimum $50 payment by the due date. Let’s say the statement balance is $2,000, but the minimum payment due is $50. The statement balance often exceeds the minimum amount due that appears on a monthly statement. Here are three ways to pay and not risk damage to your credit. The decision depends on your financial situation at the time. You’re staring at your credit card bill and wondering how much of your balance to pay. How much of your outstanding balance should you pay? That way you can contact your issuer and quickly dispute the charges before you accidentally pay for them.Īdditionally, checking your balance can help you recognize any statement credits, such as if you’re expecting a refund, and annual fees that may have been applied to your balance. Reviewing your statement also lets you spot any fraudulent charges. If you find yourself buying too many miscellaneous items on Amazon, for example, seeing them all lined up on your statement will give you good incentive to stop. It’s important to review your statements on a regular basis so that you can identify any unnecessary expenses that are driving up your bill to try and stay within budget. Staying on top of your credit card balance is crucial to maintaining a solid financial standing and preventing debt accumulation. Why you should keep track of your balance It depends on whether there’s been any activity on your card since the statement balance was last computed. However, the statement balance and outstanding balance may or may not match. Keep in mind that the statement balance remains the same until the credit card issuer sends the next monthly statement.The billing cycle doesn’t necessarily go from the first day to the last day of each month. So, one billing cycle might run from May 9 (the opening date) to June 8 (the closing date). The billing cycle is the specific time period between billing statements.This dollar amount may or may not be the same as the outstanding balance. A statement balance might also be shown as a monthly balance or a new balance.Your statement balance is the amount you owe at the end of a billing cycle (and reflects all of the purchases, interest charges, fees and other items that accrued during the most recent cycle), whereas your current balance is the entire amount you owe at a particular moment, which may include any unpaid balances from previous months.Here is how your outstanding balance differs from your statement balance: How does outstanding balance differ from statement balance? How does outstanding balance differ from current balance?Įven though the names are different, outstanding balance and current balance mean the same thing. Where do you find your outstanding balance? Just log into your account online or mobile app, or contact your card issuer’s customer service. So, let’s say your outstanding balance is $1,500 and your credit limit is $5,000, and there’s a pending transaction of $200 that hasn’t appeared on your account yet. To come up with your available credit, subtract the outstanding balance from your credit limit and add any outstanding charges that haven’t shown up yet in your account. The outstanding balance helps determine how much credit you have available at a given time. For instance, if you charge a $75 dinner, that purchase will become part of the outstanding balance once the transaction is posted to your account. The outstanding balance changes every time you use your card, even from one minute to the next. Your outstanding balance serves as a real-time snapshot of your credit card account. This includes purchases, balance transfers, cash advances, interest charges and fees. What is an outstanding balance on a credit card?Īn outstanding balance, also known as a current balance, refers to the total unpaid amount on your credit card. So, what is an outstanding balance and how does it differ from other balances that pop up on your credit card statement? Keep reading to learn more about credit card balances. And one of those is known as an outstanding balance. Understanding your credit card statement can be a bit of a balancing act because the statement lists more than one balance.
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