Statement Balance vs Current Balance: How To Tell The Difference

Credit cards give people the convenience to spend money for their wants and needs. Unfortunately, when they see their billing statement, they might get overwhelmed.

What is the Statement Balance?

The statement balance is the amount charged on a credit card within a billing cycle. The billing cycle doesn’t necessarily start and stop on the first and last day of a month. Instead, it is the number of days that defines a billing cycle, such as 30 days or 31 days.

What is the Current Balance?

The current balance is the overall balance regardless of the billing cycle. This definition is different from a statement balance, which is limited by the billing cycle.

How Does the Balance Impact Your Credit Score?

There are three leading credit bureaus (Equifax, Experian, and TransUnion) that collect account information from various creditors, such as card issuers.

How Does the Balance Impact Your Credit Score?

They take into account different factors to determine a person’s credit score for their credit report. The higher the credit score, the more creditworthy a person is to qualify for the best credit.

Which Balance To Pay On a Statement?

A credit card statement comprises three balances: minimum balance, statement balance, and current balance.

Which Balance To Pay On a Statement?

Paying the minimum balance will avoid paying any late fees. However, that does not avoid paying interest charges. The full credit will take years to pay off by only paying the minimum altogether.

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