A credit card statement balance is the total amount of all purchases, fees, and interest charges during a credit card billing cycle, minus any payments made. Cardholders must pay the full statement balance by the due date to avoid interest charges. You can find your statement balance on your monthly credit card statement, along with the current balance, minimum payment, and due date.
It’s important to note the difference between the statement balance, the current balance, and the minimum payment on a credit card. The current balance is an ongoing tally of charges, minus any payments you’ve made, up until the present time. The statement balance, on the other hand, is a similar tally that ends on the closing date of a credit card billing cycle. Usually, the current balance is higher than the statement balance for that reason. The minimum payment is what you must pay to keep your account in good standing and avoid late fees. If you only pay the minimum payment every month, you’ll be charged interest daily on the remaining unpaid portion of the statement balance. And if you pay the current balance instead of the statement balance every month, you’ll be paying for new charges sooner than you have to.
To avoid interest charges – and to not pay for things sooner than you have to - make sure to pay your last statement balance in full by the due date every month. If you don’t, interest will begin accruing daily, and you will lose your grace period until you pay the statement balance in full for two months straight.