Difference Between Statement Balance And Current Balance. Today, we will discuss what is statement balance, what is current balance, what is the main difference between statement balance and current balance, and the comparison between them. There are many people who don’t know the difference between the two terms. They are actually different from each other. If you are a credit card user and made day to day purchases with it, then are pretty aware of these terms.
Difference Between Statement Balance And Current Balance:
The main difference between statement balance and the current balance is the statement balance is the amount that owes to your credit card. Whereas, the current balance is the limit amount of your credit card. It changes daily as you do more shopping
What Is Statement Balance:
The statement balance is the amount that you are owing to the bank. Statement balance is the main balance of your credit card. You have to pay it before the due date, to avoid any interest. Paying this amount on time will free you from penalty fees. The more you do shopping from the credit card, the higher the statement balance will be.
If you pay the bill on time; i.e. before the next billing cycle, you will be able to avoid any extra interest. And if you don’t pay you statement balance fully, try to pay the minimum amount. You still have to pay the interest, but you will be saved from late fees and negative impact on the credit score. If you want to maintain your credit score, always pay your balance on time.
What Is Current Balance:
Every credit card has a limit known as the current balance. The more you spend the money, there will be an increase in the statement balance. And, if you pay the previous bills, it will gradually go down. This is the current balance on your credit card.
The current balance on your credit card changes daily. As you spend money, the amount changes. If you spend more, the amount will increase on your card and if you pay the previous bills, the number will go down. So, this is actually the current balance that is on your credit card.
Example Of The Statement Balance And The Current Balance:
Most people cannot differentiate between the statement and current balance. They only check the bills at the end of the month. But, if you check the amount during the month, the current balance will be higher than the statement balance. This is because of that you have not paid your due balance and you are spending more.
For example, the statement balance of the card is $300 at the end of the billing cycle. And, your current balance will also be the same. The next day, you do shopping of $50. After that your current balance will be $350, but the statement balance will $300. This is because of that it will only change at the end of the billing cycle.
Main Difference Between Statement Balance and Current Balance:
-Statement balance is the balance at the end of the billing cycle. While current balance is the present balance on your credit card.
-If you will not pay your dues, the current balance will be higher than the statement balance.
-Always pay your statement balance on time, to avoid any late fees and extra interest.
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