Statement Balance vs. Current Balance | Chase (2024)

FAQs

Statement Balance vs. Current Balance | Chase? ›

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.

Should I pay my statement balance or current balance? Generally, you should prioritize paying off your statement balance. As long as you consistently pay off your statement balance in full by its due date each billing cycle, you'll avoid having to pay interest charges on your credit card bill.

Statement balance: If you pay the statement balance (or more) by the due date, you maintain your credit card's grace period and won't accrue interest on new purchases. Pay at least this amount each month, and you won't pay interest on your credit card purchases.

You'll want to pay your full credit card balance after you receive your statement but before the due date. Because credit card issuers typically send reports to the credit bureaus once a month, consistently having a paid bill and a zero balance could make it appear as though you're not using your credit at all.

Should you pay the outstanding balance? Paying the full outstanding balance each month is ideal. It helps you avoid interest charges and maintain a good credit score. If paying in full isn't feasible, at least aim to pay the minimum due to avoid late fees and adverse credit reporting.

Paying off your credit card balance every month is one of the factors that can help you improve your scores. Companies use several factors to calculate your credit scores. One factor they look at is how much credit you are using compared to how much you have available.

By making an early payment before your billing cycle ends, you can reduce the balance amount the card issuer reports to the credit bureaus. And that means your credit utilization will be lower as well, which can boost your credit scores.

It's a good idea to pay off your credit card balance in full whenever you're able. Carrying a monthly credit card balance can cost you in interest and increase your credit utilization rate, which is one factor used to calculate your credit scores.

Credit card companies report your balance to the credit bureaus every month, typically at the end of each billing cycle. If you make your payment shortly before your statement date, it could help reduce your credit utilization, which can help you increase your credit score or maintain good credit.

Is it bad to immediately pay off a credit card? ›

Paying your credit card early won't directly influence your credit score, but it can help in creating good financial habits down the line. If your main concern is accidentally missing a payment due date, you can also consider setting up autopay.

While the term “deadbeat” generally carries a negative connotation, when it comes to the credit card industry, you should consider it a compliment. Card issuers refer to customers as deadbeats if they pay off their balance in full each month, avoiding interest charges and fees on their accounts.

But generally, if you don't pay your credit card bill, you can expect that your credit scores will suffer, you'll incur charges such as late fees and a higher penalty interest rate, and your account may be closed. And the longer it takes for you to pay that bill, the worse the effects may be.

You should always strive to pay off your statement balance in full each month by the due date to avoid costly interest charges. It isn't necessary to pay off the current balance before the end of a billing cycle, but doing so can help maintain a low credit utilization and boost your credit score.

When your statement is issued, there's a period before it gets to you and before you pay the balance. During this period, you may be charged interest each day, based on your annual percentage rate (APR). Then, though you may have paid your current statement balance in full, the charge appears on your next statement.

Your credit card outstanding balance is actually different from what is known as the statement balance. Whereas outstanding balance is a current picture of what you owe, your statement balance refers to the amount of money that you owed in the previous statement that you received.

Generally, it's best to pay off your credit card bill in full and on time (aka on the due date) every month. Doing so will prevent carrying a balance and incurring hefty interest charges.

Available balance is how much money you are able to spend right now, including any pending transactions. Meanwhile, the current balance shows how much money is in your account without subtracting pending payments or withdrawals.

It's a good idea to pay off your credit card balance in full whenever you're able. Carrying a monthly credit card balance can cost you in interest and increase your credit utilization rate, which is one factor used to calculate your credit scores.

Can I spend my current balance? You can, but you have to be mindful about other financial transactions you have made. Your current balance reflects all your money, in addition to funds that are being held or are in transit, such as checks.