Earn Chase Ultimate Rewards® on everyday purchases and redeem for travel, cash back and more. See all our rewards credit cards and choose one that’s right for you. It’s also easy to find your statement balance and current balance when using the Capital One Mobile app.
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- Your credit utilization ratio typically makes up 30 percent of your credit score.
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If you pay less than the statement balance, your account will still be in good standing, but you will incur interest charges. You can avoid paying interest temporarily with an intro 0% APR card, like the Wells Fargo Active Cash® Card or the Citi Simplicity® Card. Your credit utilization rate is simply how much of your available credit you’re using at any given time, which can affect your credit scores. So if you’ve recently taken out a cash advance on your credit card, we suggest paying it off as soon as possible, regardless of whether you’ve received your statement yet. If you end up having additional money to put toward your credit card bill at a later date, you can always make an additional payment.
What is a credit utilization ratio?
In order to have your account reported as current to the credit bureaus (Experian, Equifax and TransUnion) and avoid late fees, you’ll need to make at least the minimum payment on your account. But in order to avoid interest charges, you’ll need to pay your statement balance in full. That said, if you can’t afford to pay off your entire credit card statement balance by the due date, and there are a lot of very good reasons why that might be the case, then prioritize paying your minimum payment. You’ll accrue interest as a result, but making at least your minimum payment on time will help you avoid late fees and negative marks on your credit reports.
But it won’t cost you anything to let it build up until your next statement, just so long as you pay your statement balance on time in full every month. Depending on the way you use your credit cards, when you make payments and how often you check your account balance overview, your current balance and your statement balance might be different. Most credit cards allow you to automatically pay the statement or current balance each month through autopay, which is a great idea.
Why Are Your Statement Balance and Current Balance Different?
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Your current balance is not fixed the same way as your statement balance. Your current balance updates every time you use your credit card and gives you a better representation of the total amount you owe on your credit card at any given time. Two of the most important elements are your statement balance and your current balance. Our partners cannot pay us to guarantee favorable reviews of their products or services. We believe everyone should be able to make financial decisions with confidence. Choosing to pay it in full will eliminate the balance on your card temporarily.
Credit card issuers typically report your balance information to the credit bureaus after each billing cycle. And because your credit report shows the balance on your card when the issuer reported the information, the amount might be different from your most recent statement balance. Before we dive into your statement balance and current balance, you’ll need to understand what a billing cycle is, since both balances relate to it. A billing cycle is the length of time, typically 28 to 31 days, between your last statement closing date and the next. When it comes to the question of whether you should pay your credit card statement balance or current balance each month, it really boils down to personal preference and financial goals. The decision to pay your statement balance in full or pay your current balance each month will ultimately depend on your financial preferences.
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How to find your statement balance and current balance
Otherwise, you can find him reading, rock climbing, snowboarding and enjoying the outdoors. Since your current balance can change in real time, you can get the most up-to-date information by signing into your online account. But pending purchases aren’t reflected in your current balance until they post. Offer pros and cons are determined by our editorial team, based on independent research. The banks, lenders, and credit card companies are not responsible for any content posted on this site and do not endorse or guarantee any reviews.
The editorial content on this page is based solely on objective, independent assessments by our writers and is not influenced by advertising or partnerships. However, we may receive compensation when you click on links to products or services offered by our partners. Every month, you’ll receive a credit card statement for each card you hold, and one of the terms that will always appear is called a statement balance, represented as a dollar amount. With Capital One, you can also set up automatic payments and bill reminders through the Mobile app.
Your credit utilization ratio typically makes up 30 percent of your credit score. A high credit score can lead to better odds of being approved for credit, better interest rates on credit cards and loans, and higher credit limits. When you’re looking at your credit card bill, you might wonder whether it’s best to pay the statement balance or the current balance.
Your statement balance will also be printed on your monthly credit card statement. If so, there’s a good chance that you’ll be able to select “statement balance” as your automatic payment choice. Paying your statement balance in full before or by its due date can help you save money on interest charges. Alternately, paying your current balance in full by its deadline can improve your credit utilization ratio and your credit health. So, if you used a credit card to buy a pair of shoes after the statement balance was calculated, that purchase becomes part of your current balance.
Your statement balance is a snapshot of all the expenses and payments that were made to your account during one billing cycle. Once your statement balance is generated, it won’t change until your next billing cycle ends — but that doesn’t mean your credit card balance won’t change. As you continue to use your card, you’ll see your current balance — the current total of all charges and payments to your account — increase until you make a payment. To understand your statement balance, you’ll first need to know what your billing cycle is.
Keep in mind that the beginning and end of a monthly billing cycle can fall on any day of the month and aren’t dictated by calendar months. Power its potential with one of our business credit cards, like Ink Business Preferred℠, Ink Business Unlimited℠ or Ink Business Cash℠. These two balances may be the same or one may be higher than the other, depending on the purchases you make. Our experts have been helping you master your money for over four decades. We continually strive to provide consumers with the expert advice and tools needed to succeed throughout life’s financial journey. Cash back rewards are bonuses provided to customers when they use their cards to make purchases.
What is a credit card balance?
Conventional wisdom says that you should always pay off your statement balance within your grace period to avoid paying interest, but in contrast, we hear very little about the current balance. In the meantime — before you pay that bill — you buy those shoes we mentioned earlier, which cost $75. With the new $75 shoe purchase, your current balance would increase to $600, but your statement balance would remain at $525 because the new purchase would show up as part of the next statement’s billing cycle. Our goal is to give you the best advice to help you make smart personal finance decisions.
- The two balances might be different, but both can affect your credit.
- Our editors and reporters thoroughly fact-check editorial content to ensure the information you’re reading is accurate.
- You can expect your credit score to be consulted whenever you want to finance a large purchase such as a home or car.
- You can find the statement balance on the monthly statement you receive from your credit card issuer.
- It represents how much you have on your credit card at any given time.
- In most cases, your lender will send this to you in the mail or electronically, if you’ve requested.
Your statement balance typically shows what you owe on your credit card at the end of your last billing cycle. Your current balance, however, will typically reflect the total amount that you owe at any given moment. Billing cycle times frames may vary if an issuer allows cardmembers to change their billing cycle.
When you log in to your credit card account at the end of those two weeks, you’d see a current balance of $1,000 — the same amount as the statement balance. The current balance is your most up-to-date snapshot of your credit card transactions. Keep an eye on this because you’ll eventually have to make payments on it.
Take a look at your credit card issuer’s terms and services to see if it offers anything like this. Each month, typically at the end of the billing cycle, your credit usage will be reported by your credit card issuer to the Consumer Credit Bureaus. While it’s common that issuers report statement balances, some issuers may send the current balance instead. You can check with your credit card issuer to find out which balance is being reported and when. Your statement balance is an overview of all purchases and payments made during one billing cycle.
Whichever you choose, autopay can help you rest assured knowing your payments will be on-time and interest-free every month. If you’ve made payments on your credit card after your billing cycle ended and haven’t made any other purchases, your current balance may be lower than your statement balance. On the other hand, if you’ve made purchases since your statement closing date, your current balance will most likely be higher than your statement balance. Opinions expressed here are author’s alone, not those of any bank, credit card issuer or other company, and have not been reviewed, approved or otherwise endorsed by any of these entities. All information, including rates and fees, are accurate as of the date of publication and are updated as provided by our partners.
If you’ve made a purchase since your last billing cycle closed, go online to check your account and you’ll see your current balance is higher than your statement balance. So, if you charge $2,000 on your only credit account and your limit is $10,000, your credit utilization ratio is 20 percent. While we adhere to strict
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What is statement balance?
The content created by our editorial staff is objective, factual, and not influenced by our advertisers. Our mission is to provide readers with accurate and unbiased information, and we have editorial standards in place to ensure that happens. Our editors and reporters thoroughly fact-check editorial content to ensure the information you’re reading is accurate. We maintain a firewall between our advertisers and our editorial team. Our editorial team does not receive direct compensation from our advertisers. Bankrate follows a strict editorial policy, so you can trust that we’re putting your interests first.
Once your statement is generated, your statement balance doesn’t change until your next billing cycle closes. Bankrate follows a strict
editorial policy, so you can trust that our content is honest and accurate. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions.