What’s The Difference Between A Credit Card Statement Balance And Current Balance

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You must manage your credit card efficiently to manage your finances effectively. You may purchase the best credit cards, but having a thorough understanding of how a credit card works is essential. Understanding the meaning of specific keywords that show up while managing your account is essential. Two such keywords are credit card statement and current balance. Although these terms may sound alike, they signify entirely different things.

What is Credit Card Statement Balance?

Credit card companies charge your purchases using a specific billing cycle. A credit card statement balance accounts for all the purchases made by the user during the specified timeframe, also referred to as the billing cycle. As the billing cycle ends, you may receive the credit card bill. It includes your statement balance, which remains the same until your next billing cycle completes.

What does the Current Balance mean?

The current balance includes the total outstanding amount due on your credit card. It incorporates all the expenses that are unpaid at the time when you check it. Your current balance would include charges from your credit card statement that you have not paid yet and additional expenses that would appear in your next billing cycle.

How does the amount of a credit card statement balance differ from that of a current balance?

Let us understand how the two amounts can differ across various situations.

– The current balance amount is greater than the Credit Card statement balance amount

You may witness a common situation wherein the amount of your current statement exceeds that of your statement balance. It signifies that you have made further purchases after the end of your billing cycle without paying off your statement balance amount. As a result, the total dues outstanding on your credit card, represented by the current balance, is more than what the statement balance shows. 

Assume your billing cycle ends on January 10. A statement balance of Rs. 10,000 was generated on your credit card. You are yet to pay the statement balance amount. On January 11, You make another purchase of Rs. 5,000. This amount would show up in your next statement bill. However, since the current balance includes all the expenses up to date, it would add Rs. 5,000, and your current balance would become Rs. 15,000.

– The current balance amount is less than the credit card statement balance amount

There could also be a situation wherein your statement balance amount exceeds your current balance amount. It indicates that you might have partially or fully paid off your statement balance before making further purchases. Therefore, your total outstanding dues reflect a lower amount than your statement balance amount.

Assume your billing cycle is set to end on January 10. You receive a statement bill of Rs. 10,000. On January 11, you decide to pay Rs. 5,000 on your statement bill. The next day, you make further expenses on your credit card worth Rs. 2,000. In this case, your statement bill would still show the same amount, i.e. Rs. 10,000, since this amount remains the same until the next statement bill is generated. However, your current balance would change significantly. Since you have partially paid off your statement balance, your net dues would subtract that amount (Rs. 10,000 – Rs. 5,000 = Rs. 5,000). Moreover, since you have incurred additional expenses on your credit card, those would also get added to your current balance. (Rs. 5,000 + Rs. 2,000 = Rs. 7,000). As a result, the two amounts begin to differ significantly. While your statement balance is Rs. 10,000, your current balance is Rs. 7,000.

Paying Statement Balance vs Current Balance

It is considered an excellent approach to paying your statement balances on time. You must ensure to pay your statement balance within your due date to avoid additional interest charges that may get piled onto your credit card bill. You can pay the minimum balance on your credit card if you cannot pay off your entire statement balance. Although you will still accrue interest on your credit card by paying the minimum balance, you can still manage to save your credit reports and avoid late fees. Fixing an autopay on your credit card account is recommended to make timely payments and avoid incurring additional expenses on interest payments and other charges.

Impact of statement balance and the current balance on credit utilization ratio?

The credit utilization ratio is based on a credit card balance check and signifies how much credit you are availing of at a given moment. It is usually better to uphold a lower credit utilization ratio. Credit bureaus compute this ratio from the data provided by credit card companies. Although many credit card companies report their customers’ current balance, some might even report the statement balance.


To manage your finances efficiently, you must monitor your credit account regularly. It includes keeping a close check on your current and statement balance to ensure that the dues are paid on time.

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