Statement Balance vs. Current Balance: Know the Difference

I don’t have to worry about credit card debt. I pay off my balance every month.

Sounds simple. But while it’s clear you should pay off your credit cards in full, it’s not always clear if you should pay the statement balance or the current balance.

The statement balance is the total of what you owe from the previous billing cycle, while the current balance on a credit card is what you owe in real time.

Understanding these two balances can help you avoid paying interest—or worse, falling into credit card debt. That said, let’s get clear on the difference between statement balance vs. current balance.

What Is a Statement Balance?
What Is a Current Balance?
Why Is My Statement Balance Different Than My Current Balance?
Should I Pay the Statement Balance or Current Balance?
If I Pay My Statement Balance, Will I Be Charged Interest?
What If I Can’t Pay the Statement Balance?
Credit Card Balance Terms to Remember
How Do Credit Card Balances Affect Your Credit?
Ditch the Credit Card Balance Confusion for Good

The statement balance is the amount you owe on your credit card at the end of a billing cycle.

Your statement balance includes purchases you made during the most recent billing cycle, as well as interest charges, fees and any unpaid balances you’ve carried over from previous months.

Credit card billing cycles usually last 28–31 days. So, if a billing cycle ends on January 28, the statement balance is generated on January 29.

You’ll find your statement balance listed on your monthly credit card statement (which you can get through your email, physical mail or online credit card account). You must pay your statement balance by the due date. Otherwise, you’ll be charged late fees, as well as interest on the remaining balance.

The current balance is what you owe on your credit card at a given time.

The current balance includes purchases, interest, fees and any other outstanding charges. But while the statement balance is the sum of what you owe at the end of the billing cycle, your current balance is what you owe in real time (minus any pending transactions).

Also, your current balance is not the same thing as your available balance. The current balance is what you owe, while the available balance is what you have left to spend. (And by spend, we mean borrow from the credit card company.)

Don’t be surprised if the statement balance and current balance don’t match up.

That’s because you get one statement balance per billing cycle, while your current balance is ongoing—meaning it can change before (and after) you get your final statement for the month.

Your current balance will be higher if you made purchases after your statement balance was already calculated. On the other hand, the statement balance may be higher if you received a refund after the billing cycle ended.

And because of how credit cards work, by the time your statement balance is due, you’ve probably already racked up another month’s worth of purchases toward your current balance.

For example, let’s say you get your October credit card statement. The statement balance for the period of 10/1–10/30 is $3,450. But it’s November 5 and you’ve already used your credit card to pay your bills for the new month. So even though your statement balance is $3,450, the current balance on your card is actually $5,725.

Still confused? That’s exactly what credit card companies want. Because the more you scratch your head about what to pay and when, the more likely you are to carry a balance and pay them interest and fees.

You should pay the statement balance by the due date listed on your credit card statement to avoid paying interest on your purchases from the previous billing cycle.

Once your statement balance is paid, your current balance will reflect the updated amount you owe.

But paying your current balance will cover what you owe on your statement balance plus any purchases you’ve made since then. So, while it’s not necessary to avoid interest, bringing your current balance down to $0 lowers your chance of falling behind on payments and carrying a balance into the next billing cycle.

No, if you pay your full statement balance by the due date listed on your credit card statement, you will not be charged interest on your purchases from that billing cycle.

But just because you think you’ll be able to pay your statement balance on time, that doesn’t guarantee it’ll happen. Emergencies and other unexpected expenses can immediately derail your plan and send you right into interest-paying territory. That’s why using credit cards is super risky.

The Credit CARD Act of 2009 requires credit card companies to give you a grace period between the end of a billing cycle and when the statement balance is due (usually around 21–25 days).

But if you can’t pay the full statement balance by the due date, you should at least try to pay the minimum payment due. You’ll still be charged interest on your remaining balance, but you’ll avoid late fees and other penalties like a possible hit to your credit.

Keep in mind, though, credit cards have extremely high APRs (that’s annual percentage rates). In fact, the average credit card interest rate is 23.37%!¹

So, if you don’t pay your statement balance in full and on time, you’re looking at a hefty percentage tacked on to your outstanding balance. Plus, compound interest has the power to hurl you deeper into credit card debt faster than you think!

Okay, we’ve covered a lot already. But here’s a quick recap of key credit card balance terms and what each means.

Statement Balance: You need to pay the statement balance by the due date to avoid being charged interest on your purchases from the previous billing cycle.

Current Balance: Paying the current balance will cover your statement balance plus any purchases you’ve made since the previous billing cycle.

Minimum Payment Due: If you can’t pay the full statement balance, paying the minimum payment due will let you avoid late fees and other penalties—though you’ll still be charged interest on your remaining balance.

Your credit card balances directly affect your credit score.

Credit card companies usually report your statement balance to the major credit bureaus every month. As long as you pay the minimum payment on time each month, you’ll stay in the good graces of the credit card company—and the credit bureaus. If not, it will hurt your credit.

Paying off your credit card statement balance on time or making early payments toward your current balance can boost your score.

Another important factor is your credit utilization ratio (how much of your available credit limit you use each month). A lower credit utilization ratio is considered better than a high one in the eyes of credit bureaus. So even if you pay your statement balance in full, having a high balance or multiple credit cards could still ding your credit.

Oof, that’s a lot of rules to navigate just to make the credit overlords happy so they’ll reward you with the “privilege” of borrowing more money from them. It’s a risky (and exhausting) game to get sucked into. But the good news is, you don’t have to play.

The total credit card debt in America is $1.17 trillion—the highest it’s ever been!² And according to our research, 1 in 4 Americans have maxed out a credit card in the last 90 days. With so many people using credit cards to survive, it’s no wonder credit card debt is shooting up so fast.

But instead of stressing about when to pay off your credit card balances, we’ve got a better solution. It’s time to ditch the credit cards and get on a budget. A budget puts you in control. Not a credit card company.

When you’ve got a game plan for your money, you don’t have to rely on credit cards to cover your expenses. You can actually get ahead, rather than just getting by. Imagine that!

The best way to budget is with EveryDollar. You can easily set up your budget, track your transactions, and see how to reach your money goals faster.

And because you’re telling your money where to go before the month starts, you know exactly how much you can spend. No tricky billing cycles or different balances to worry about!

Quit the credit card balancing act. Download the EveryDollar budgeting app for free today!