Statement Balance vs. Current Balance: What’s the Difference?

4 Min Read | Published: March 5, 2024

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This article contains general information and is not intended to provide information that is specific to American Express products and services. Similar products and services offered by different companies will have different features and you should always read about product details before acquiring any financial product.

Understanding the difference between the statement balance and the current balance on a credit card can help you to manage your payments.

At-A-Glance

Your statement balance refers to the ending balance on your credit card statement, and the amount that you owe at the end of a billing period.
Your current balance is a more up-to-date view of your balance on your credit card.
Understanding the difference between your credit card statement balance and your current balance is key to properly managing your credit card account.

One of the keys to properly managing your credit card account is to understand the difference between your statement balance and your current balance.

If you’re confused about this, you’re not alone. Many people wonder why the balance they see on their credit card statement doesn’t always match the current balance they see on their credit card issuer’s website or mobile app.

So what’s the difference?

In a nutshell, your statement balance is the amount that you owe at the end of a billing period. The current balance, however, is the amount that is owed on your account as of today.

What Is a Statement Balance?

Credit card holders typically receive a statement every month. The statement may come as a paper document in the mail or an online page you can view via a web app or internet browser. The statement shows a list of all the transactions you made that month, along with any fees, charges, or payments that you’ve made. It also includes a starting balance and an ending balance. That ending balance is known as your statement balance.

Your statement balance is calculated at the end of a billing cycle.¹ It’s worth noting, that a billing cycle does not typically line up perfectly with the calendar month. For example, a credit card statement could list all transactions starting on the 21st day of a month and ending on the 20th day of the next month. In this case, any transactions made after the 20th will be counted towards the following month’s statement balance.

What Is a Current Balance?

Your current balance is more of an updated snapshot of your balance on your credit card. You can typically find this by looking online or viewing your balance in your credit card issuer’s app.

If you have your credit card statement mailed to you, you’ll typically receive it a few days after the statement balance is calculated. Using your credit card before you get the statement won’t change the statement balance because it’s already set, but those new charges will impact your current balance.

The current balance could change frequently during the billing cycle, so it’s important to check it before making any new credit card purchases. Don’t just look for new transactions. Fees and interest can change your current balance as well.

Current Balance vs. Statement Balance: What’s the Difference?

Your statement balance is the ending balance calculated on the final day of last month’s billing cycle. It’s displayed on your statement and doesn’t change until the next month’s credit card statement is compiled. Your statement balance is used to calculate your minimum monthly payment, interest charges to be assessed, and the total balance due.

Your current balance, on the other hand, is your balance right now. It’s calculated in relatively real-time and reflects any purchases or fees registered as of now.

Two phone screens, one shows statement balance the other shows current balance.

Using Both Balances to Manage Your Credit Card

To properly manage your credit card, pay attention to both balances.² The statement balance is used to determine your minimum monthly payment, but you may want to pay more than that to keep your current balance as low as possible. Paying a little bit extra will help to give you more spending bandwidth for upcoming purchases and lower your minimum payment due next month.

Review your budget to make sure you can afford to maintain the current balance you are carrying. If it feels like your payments are going up, go back and review your statement balances for the past few months. You might just be spending more.

Frequently Asked Questions

You’re required to pay the minimum balance due listed on your credit card statement, but many cardholders choose to pay off the current balance each month to avoid interest charges on the balance. This can also help to lower your credit utilization rate, which may positively impact your credit score.

Many credit card providers allow cardholders to change their credit card due date. If you’re an American Express Card Member, you can change your due date online by logging into your account. Be sure to check with your credit card issuer for more information.

The Takeaway

Your statement balance is a fixed number calculated at the end of a monthly billing cycle. Your current balance is continually updated to reflect your balance right now. The two numbers are equally important for managing your credit card account, so make sure you understand what they mean and know where to find them.

¹ “Your statement balance is calculated at the end of a billing cycle,” Bankrate

² “Statement Balance Vs. Current Balance: The Difference And Why It Matters,” Forbes Advisor

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Kevin D. Flynn is a financial services provider, business coach, and financial writer. He lives in Leominster, Massachusetts with his wife Evelyn, two cats, and ten wonderful grandchildren.

All Credit Intel content is written by freelance authors and commissioned and paid for by American Express.

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