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What’s the Difference Between Statement Balance and Current Balance?

6 min read

Last Updated: January 15, 2025

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Key Takeaways

Your statement balance is what you owe for a billing cycle, but your current balance is a running total of your unpaid charges and interest.
Your statement balance shows you what to pay each month to avoid interest charges.
Credit bureaus can’t see your current balance; lenders only report your statement balance each billing cycle.

As you manage your credit card account, you’ll come across two similar terms: statement balance and current balance. And although they may sound the same, your statement balance and current balance are distinctly different. Understanding this difference is important when making payments and considering the overall health of your credit.

Your statement balance is the balance on your account as of the day your billing cycle ends. It includes every transaction you’ve made during that billing cycle and any unpaid balances from previous billing cycles. On the other hand, your current balance is the current total of all outstanding transactions and interest posted to your account. This includes any charges made after the lender generates your last statement (except for charges still pending). Let’s take a closer look at what sets a statement balance and current balance apart.

What is your statement balance?

Your credit card company calculates your statement balance in line with your billing cycle, which is the time between the close of your last statement and your current statement. The Truth in Lending Act requires your billing cycle to occur equally so you can depend on it, but it might vary by a few days. A typical cycle is 28 to 31 days.

The way it varies can’t be by more than four days. If your card issuer chooses a specific day like the 15^th of each month, it might change if it falls on a holiday. If your card issuer chooses an interval like “the third Thursday,” that will change by how many days are in a month.

Your statement balance includes:

Charges posted to your account within that billing cycle
Unpaid amounts from previous statements
Interest
Applicable fees

Transactions made after the cycle (but before you receive your bill) will appear on the statement balance for your next billing cycle. This includes pending transactions.

Your statement balance is what appears on your monthly credit card statement. The statement balance should appear toward the top, typically under your account number and current billing cycle information.

Your credit card statement is available online or by mail, depending on your paperless billing preference.

What is your current balance?

Your current balance reflects any new transactions or payments posted to your credit card account since your last statement closed. It also includes the total unpaid charges from your previous billing cycle and the applicable interest charge for that outstanding amount. You can find your current balance by logging into your account online.

Your monthly statement balance appears as a fixed number at the end of each billing cycle, but the current balance on your credit card can fluctuate. The changes are primarily based on purchases, and if you use your card for day-to-day purchases, you’ll see more activity.

Refer to your current balance when determining your available credit, especially before making a purchase. Refer to your statement balance and minimum payment due when paying your monthly credit card bill.

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When is your statement balance due?

Your credit card issuer uses the total amount of your credit card statement balance to calculate your monthly minimum payment. Your statement balance will include any interest and fees, if applicable.

When you receive your monthly credit card statement, you’ll find your statement balance posted with your minimum payment and due date. The Truth in Lending Act requires that you receive your billing statement at least 21 days before your bill is due.

You’ll need to pay the minimum by the due date to avoid potential late payment fees. And you’ll have to pay off the entire statement balance to avoid an interest charge. If you can only pay part of your statement balance at the end of your billing cycle, paying the remaining amount by the end of your next billing cycle can help you avoid compounding interest (an interest charge that accrues on interest).

Your monthly statement balance will also include any balance transfers or cash advances from that billing cycle. Consider that the terms for these types of transactions may differ from regular purchases. For example, a cash advance typically begins accruing interest immediately; starting your repayment as soon as possible (even before your next statement’s due date) can help to reduce the interest you’ll owe.

Reviewing your statement balances from each previous billing cycle can also help you better understand your spending habits to choose the best credit card for you. If you tend to carry an outstanding balance, the best credit card may be one with a low interest rate. A credit card with a higher credit limit could make it easier to maintain a high available balance and a low credit utilization rate.

How can you track your account balances?

Keeping track of your account balance is critical to managing your finances, from monitoring your credit utilization to minimizing credit card debt. Paper statements can be helpful, but it’s a good idea to utilize your account’s online banking services.

Many credit card companies have a mobile banking app (in addition to their online banking service) that allows you to check your current balance in real-time and view your past and present statement balances. Your app should also show if you have a pending transaction that may affect your balance.

Did you know?

Your mobile app may also let you set up automatic spending alerts to notify you when you reach a certain balance or get too close to your credit limit. You could even schedule automatic payments to help you avoid late or missed payments.

Does your statement balance or current balance impact your credit score?

Your credit card issuer may report your statement balance to at least the three major credit bureaus each month. What is in your credit history makes up your credit report. The credit bureau then uses an algorithm to create a three-digit credit score.

Note that each of the three major credit bureaus might use their own credit scoring model to calculate a score. While the weighting systems are quite similar, sometimes lenders only report information to one or two bureaus, so you may see a different credit score based on that information.

One important part of your credit score is your credit utilization ratio. What is your credit utilization ratio? It’s the percentage of available credit you’re using and makes up about 30% of your credit score. So a high statement balance may lower your credit score because it shows you have low available credit. However, credit bureaus can’t see your current credit card balance, so it won’t impact your credit score if you pay off new charges before the close of your billing cycle.

Credit cards, along with your debit card and savings account, are great tools for handling expenses. They're also critical for building a credit history. when you know the difference between your statement balance and your current balance, it can make it easier to track what you owe, when it’s due, any potential interest charge, and your available credit. These essential factors of responsible credit management can make all the difference for your financial wellness.

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