Statement Balance vs. Current Balance | Capital One (2024)

FAQs

Statement Balance vs. Current Balance | Capital One? ›

A statement balance shows the amount the cardholder owes the issuer at the end of each billing cycle. A current balance, on the other hand, changes throughout the billing cycle as the cardholder makes new purchases and payments. Pay off the full statement balance by the due date each month to avoid interest charges.

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.

Your statement balance shows what you owed on your credit card at the end of your last billing cycle, whereas your current balance reflects the total you actually owe at any given moment.

This is because your current balance is continually updated based on payments and purchases made, while your statement balance is a record of your balance on a given date.

If you've made recent purchases with your debit card, but the financial institution hasn't fully processed the transaction, the current balance will be higher than the available balance. This is also the case if you have written a check that has not yet cleared.

Managing your current outstanding balance effectively is key to maintaining a healthy credit score and avoiding unnecessary interest charges. Here are some tips: Pay in full: Try to pay off your entire outstanding balance each month to avoid interest charges.

The current balance on your bank account is the total amount of money in the account. But that doesn't mean it's all available to spend. Some of the funds included in your current balance may be from deposits you made or checks you wrote that haven't cleared yet, in which case they're not available for you to use.

By comparison, let's say you have a $10,000 balance at the end of your billing cycle; at 22.77% interest, you'll owe an additional $183.85. And that number will only increase with each billing cycle you carry a balance. So, a zero balance is a good thing for your bottom line.

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.

If your credit card statement reflects a zero minimum payment due - even if you have a balance on your card - it is because of recent, positive credit history. A review of your recent credit history and determination to waive your minimum monthly payment allows you to skip your monthly payment for a statement cycle.

Is it bad to pay a credit card before a statement? ›

Paying your credit card early could help your credit score

By making an early payment before your billing cycle ends, you can reduce the balance amount the card issuer reports to the credit bureaus. That means your credit utilization ratio—the total percentage of available credit you're using—will be lower as well.

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.

If you'd like to avoid paying interest on your credit card, you have two options. You can pay off your balance before your grace period ends, or you can apply for a credit card that offers a 0 percent intro APR on purchases for a time.

Pay the statement balance: This means paying exactly what's due. If you pay off the total statement balance by the due date, then you won't pay interest on purchases from the last billing cycle. Pay the current balance: This covers your statement balance plus any charges you've made since the end of the billing cycle.

Your statement balance is what you owe on your credit card from the transactions you made during your last billing cycle, plus any fees and interest accrued if you carried a balance. Your billing cycle typically runs between 28 and 31 days, with an average length of around 30 days.

You can avoid paying accrued interest if you pay off your full statement balance within the interest grace period — the time between the end of the billing cycle and your due date — if your credit card company offers this period.

With the 15/3 rule, you make two payments each statement period. You pay half the credit card balance 15 days before the due date and the second half three days before the due date. This method ensures that your credit utilization ratio stays lower over the duration of the statement period.

Credit cards apply interest on your outstanding balance every month. So if you pay only the minimum amount, your outstanding balance will remain high. The interest on the outstanding balance will accumulate month on month, making your debts higher.