Credit Card Statement Balance vs Current Balance

It is important for all new credit card users to have complete knowledge about the benefits and features of credit cards. One is likely to have doubts as a first time credit card user related to its balance, charges, and monthly statement.

Updated On - 02 Oct 2025
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Every month, the issuing bank sends credit card statements to its credit cardholders which contain complete details about the purchases and transactions that the cardholders have made, and the amount that needs to be paid by the due date.

Many credit card users get confused while checking credit card balance by seeing two types of balance on the net banking portal: current balance and statement balance.

The overview of all the charges and payments made to your account during one billing cycle will reflect on your statement balance. Once your statement balance is generated by the bank, it won't change till the end of your next billing cycle. However, that does not mean your credit card balance won't change.

As you continue using your credit card, you will notice your current balance which is the sum of all payments and charges to your account will increase until you make the payment. Your current balance could also be lower or higher than the statement balance based on the transactions you have made.

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Which Balance Should be Paid to Avoid Interest Charges?

Given below are the tips that you can follow to avoid interest on your credit card dues:

  1. If you want to start your next billing cycle with zero balance, it is advisable to pay the total amount on or before the due date of the present billing cycle. This way you can also enjoy the interest-free grace period.
  2. You can also set up auto-debit with the credit card provider from your savings bank account so that you can make the full payment within the due date of every billing cycle. The payment will automatically be debited from your account on the specified date.
  3. If your savings account does not have an adequate balance, the banker will reject the payment which may result in interest and late payment charges on the statement balance.
  4. While setting up auto debit for your credit card, it is important to maintain adequate funds in the source account from which the payment will get deducted.
  5. If you fail to pay the credit balance amount, it can negatively impact your credit score.
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Using Automatic Payments to Avoid Interest Charges

Many credit card issuers are now able to provide automated payments to their customers through online payment and billing options. If your credit card issuer has an autopay option, you will be able to choose your statement balance as your automatic payment choice. The autopay option will help you to avoid interest charges and late fees on your transactions.

How does Your Credit Balance Affect Your Credit Utilization Ratio?

Your current amount may have an impact on your credit utilization ratio based on how your credit card issuing bank or company report your account balances to the consumer credit bureaus.

Your credit score may be impacted by your credit utilization rate, which is essentially how much of your available credit you are utilizing at the given time. The credit bureaus calculate the credit utilization rates based on the balances that they receive from the credit card issuing banks or companies. Many credit card issuers report the statement balances of their credit cardholder. However, some may send the current balances.

If you are concerned about your credit utilization rate, you need to get in touch with your credit card issuer to find out which balance they report to the credit bureaus. If your credit card issuing bank or company reports current balances rather than statement balances, ask your issuer which day of the month it reports. If your credit utilization rate is high, you need to pay your current balance.

If you are still unsure about whether to pay the current balance or the statement balance, we would recommend you pay the full statement balance before the due date in order to avoid the late fees and interest charges. On the other hand, you can also make the payment of your complete current balance to make it NIL.

If you are unable to pay the full statement balance within the billing cycle, it is advisable to pay the minimum amount required before the due date in any circumstance to avoid the late fees and interest charges.

FAQs on Credit Card Statement Balance vs Current Balance

  • Should I pay the statement balance or the current balance?

    It is advisable to prioritize paying your statement balance.

  • Why is the current balance different from the statement balance?

    The statement balance reflects the payments and charges made during the recent billing cycle. On the other hand, the current balance shows the full amount you owe on your credit card.

  • Should I pay my credit card amount in full?

    Yes. It is always advisable to pay your credit card amount in full.

  • What is the best way to raise a credit score?

    The best way to raise your credit score is to always make your credit card bill payment on time.

  • What is the best day to pay a credit card bill?

    You can pay your credit card bills on or before the due date of your billing cycle.

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