Statement balance vs. current balance: How they differ

When paying your monthly credit card bill, you might be focused on finding out what you owe. Along with your minimum payment, there are two important terms: statement balance and current balance.

One represents activity during a single billing cycle, the other a real-time view of what you owe.

What you’ll learn:

• Your statement balance is the total owed, based on adding all charges and payments, at the end of a billing cycle.

• Your current balance includes new purchases and other activity that may have occurred since the previous billing cycle ended.

• Your current balance can be higher than your statement balance if you make purchases with your card after the end of the billing cycle.

• You can avoid late fees and paying interest on new purchases by paying off your statement balance on time every month.

Your credit card statement balance is what you owe at the end of a billing cycle, which is typically 20-45 days. It’s the total of all the purchases, fees, interest and unpaid balances, minus any payments or credits since the previous statement. 

The statement balance doesn’t include any new card activity once the billing cycle ends. Once it’s calculated, the statement balance remains the same until the end of the next billing cycle. That’s a key difference between a statement balance and a current balance.

Unlike your statement balance, which is fixed at the end of the billing cycle, your current balance is a real-time total of all charges, interest, credits and payments on your account. Your current balance could change each time your card is used. But pending transactions aren’t included until they post.

Your statement balance is listed on your monthly credit card statement. In many cases, your lender will send this to you in the mail or electronically.

Because your current balance can change in real time, you may find the most up-to-date information by signing in to your online account. 

If you’re a Capital One cardholder, you can find your statement balance and current balance when using the Capital One Mobile app.

Your current balance might be higher if you’re looking at your account between the time that you receive a statement and when you pay it. That’s because the current balance reflects both the statement balance before you pay the bill and any card activity that’s occurred since then.

It’s also possible for your current balance to be lower than your statement balance. This could happen if a transaction is refunded after the billing cycle has closed, for example. 

And if you haven’t used your card between the end of the billing cycle and when you actually pay the bill, your current balance could be the same as your statement balance.

You don’t need to pay your entire current balance on your credit card bill to avoid paying interest, just the statement balance. Consistently paying off your statement balance every month by the due date can help you avoid paying interest or late fees. 

Choosing to pay your current balance in full will eliminate the balance on your card temporarily. But pending transactions, fees and interest charges may post later and require additional payments. 

If you’re not able to pay your entire statement balance, paying at least the minimum payment can help keep your account in good standing. Plus, you typically won’t face any late fees or penalties. 

With Capital One, you can set up automatic payments and bill reminders through the mobile app. These can help you pay on time, understand your balance and help keep your credit card account in good standing.

Among other factors, credit-scoring companies use your credit utilization ratio when calculating your credit scores. Your credit utilization ratio measures how much credit you’re using compared to your total credit limit. Your credit card balance at the time it’s reported to the bureaus can impact this.

According to the Consumer Financial Protection Bureau (CFPB), experts recommend keeping your credit utilization below 30% of your available credit. 

It’s not required, but paying down your current balance can help improve your credit utilization ratio, which in turn may help bump up your credit scores.

Your statement balance is a snapshot of your previous billing cycle, while your current balance is the most up-to-date total of your credit card transactions. Understanding the difference could help you better manage your account. And consistently paying off your statement balance by the due date can help minimize interest and improve your credit utilization ratio.

Are you making the most of your credit card? You can compare credit cards from Capital One and even find out whether you’re pre-approved with no harm to your credit.