A statement balance is the total amount you owe on a credit card as of the last billing cycle. It includes all purchases, interest, and fees posted to the account during that period.
How It Works
The statement balance is different from the current balance, which reflects real-time transactions. Paying the full statement balance by the due date usually avoids interest charges on new purchases.
Why It Matters
- Avoiding interest: Paying the full statement balance by the due date prevents interest on new purchases.
- Credit score impact: Consistently paying at least the statement balance helps maintain a good credit history.
Final Thoughts
The statement balance is a key figure in managing credit cards responsibly. Paying it in full and on time helps avoid debt and interest charges, while also supporting a healthy credit score.