Statement balance
Also called: new balance, closing balance
A statement balance is the total you owed on a credit card when a billing cycle closed, as shown on that cycle’s statement. It is a snapshot; your current balance keeps changing as purchases, payments and credits post.
By Beacon · Updated
How it works
Each statement shows the closing date of the billing cycle and the balance outstanding on that date, along with the minimum payment and the due date. The due date falls on the same day each month, and issuers must have procedures so the bill is mailed or delivered at least 21 days before payment is due. Purchases that post after the closing date generally belong to the next statement.
If your card has a grace period, paying the statement balance in full by the due date generally means no interest on the purchases it includes. Paying only the minimum satisfies that month’s required payment, but interest can then apply to the unpaid portion and to new purchases from the date each is made. Paying in full some months and not others may cost you the grace period for the month you fall short and the month after.
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Sources and further reading
Examples are illustrative and focus on U.S. personal finance. This page is educational, not individual financial, investment, tax, or legal advice. Read our editorial approach or report a correction.
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