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Statement Balance and Current Balance: What do they Signify?

Find out more about the balances on your credit cards and how they may affect your credit score.

When you pay your credit card bill each month, you may be focusing on determining what you have to pay. However, two terms may be confusing: “statement balance” and “current balance.”

Your balance on your statement is the total of all transactions and charges you paid during a single billing cycle. Your current balance represents an additional “real time” overview of the amount you owe to your card.

The two balances may differ, but they could affect your credit. Here are some things to keep in mind when comparing your current balance with your statement balance.

What is the Statement Balance?

The balance on your statement is the amount you owe at each end of your billing cycle, which typically takes between 20 and 45 days. Imagine it as an annual overview of your bank account. It’s the sum of all the fees, purchases, interest, and balances that are not paid without any payment or credit card balances that have been accrued since the last statement.

Making sure you pay it off each month before or on the due date helps you avoid having to pay interest. It’s also important to keep in mind that the balance on your statement remains identical until the end of each billing period once the balance is calculated. There’s a significant balance what’s the difference between the statement at present.

What does the word “current balance” mean?

If you’re checking the balance of your online account, the balance is a sum of all the charges, interest credit, and your account balance. Imagine it as an accurate, real-time picture of your debts.

It could change every time you use your card. However, pending purchases don’t show in your balance until posted.

Paying your statement balance in full will erase the card’s balance for a short period. However, pending charges, fees, and charges could be incurred in the future and require additional payment.

What Effects Your Balance Has On Your Credit Score

Credit card companies typically provide information about your balance to credit bureaus at the end of every billing cycle. However, the exact date and time could differ for every firm. Also, since the information on your credit report showed your credit card balance when the credit card issuer reported the data, the balance could be different from the latest balance on your statement.

Credit-scoring companies also take into credit card account the ratio of your utilization to calculate your credit scores. Also, your balance on your credit card at the time that it’s reported to bureaus could affect this.

Your credit utilization ratio measures the amount of credit you’re utilizing versus the amount of credit you have. Experts suggest maintaining your credit utilization at or below 30% of the credit available based on the Consumer Financial Protection Bureau.

While not always mandatory, it can improve your credit utilization ratio and, in turn, boost your credit score.

How to Locate the Balance on your Statement and Current Balance

Your credit card statement balance is shown on the monthly credit card statement. Your lender will most likely deliver this information to you via mail or electronically if you’ve requested it.

Since your balance may change at any time, It is possible to get the most current information by logging in to your account online.

It’s also easy to see your card statement balance vs your current balance with the Green Day Online Mobile application. After you have opened the app and signed in, click the icon displayed with the number of your credit card. The homepage will show your current balance and the available credit at the top of the screen.

Should I pay my Current Balance or the Balance on my Statement?

It’s not necessary to pay your current balance to avoid paying interest. Simply the balance of the statement on your credit card statement. Paying it on time by the due date can save you from paying the interest or fees for late payments.

If the charges you’ve incurred in the past month since your last bill cycle have created an amount of debt, you’re not at ease with, clearing the balance in advance can assist in helping improve your credit utilization ratio and your credit score.

If unable to pay your statement balance in full. It’s crucial to make the minimum amount—this will keep the account in good order and protect the credit rating. In addition, you won’t have to pay penalties or fees for late payments.

Through Green Day Online, you can also schedule automatic payments and reminders for bills through the Mobile application. They can help you make payments on time, know your balance, and ensure your account is up and running.

Controlling Your Statement Balance and the current balance

Understanding the differences in your statements and your current balance can help you manage your account.

Your balance on your statement represents a snapshot of the last billing cycle. In addition, paying the balance before the due date will reduce the amount of interest charged. Improve your credit utilization ratio. Maintain your account.

The balance you have is the most current snapshot of the transactions you make with your credit card. Be aware of this as you’ll have to pay the statement balance. Also, when you report your account to the credit bureaus, it could impact the quality of your credit report, credit utilization, and score.

Jason Rathman