What is the difference between current balance and outstanding balance

Outstanding balance, which is sometimes also known as current balance or balance outstanding, is a figure on your credit card statement that refers to the total unpaid amount. Given that you do not pay immediately when using a credit card, this figure shows what you are due to pay by the end of the agreed term, which is usually monthly.

Keep reading to find out more about outstanding balance and what it means for your credit. As previously mentioned, the total outstanding balance indicates the unpaid amount that remains on your credit card. This figure takes into account a number of different expenditures, including purchases, transfers, cash in advance, interest charges and fees. It is therefore a great summary of everything that you owe on your credit card. In addition, your balance outstanding gives you an indication of how much credit you have available to use.

You can calculate this by subtracting the outstanding balance from your credit limit and then accounting for any outstanding charges that are not showing in your account.

Your credit card outstanding balance is actually different from what is known as the statement balance. Whereas outstanding balance is a current picture of what you owe, your statement balance refers to the amount of money that you owed in the previous statement that you received.

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Account management Advertiser Disclosure What is an outstanding balance on a credit card? Advertiser Disclosure. Summary Outstanding balance, also known as current balance, refers to the total unpaid amount on your credit card.

Editorial Disclaimer The editorial content on this page is based solely on the objective assessment of our writers and is not driven by advertising dollars. In Account management What is VantageScore? See more stories. In Other News. Credit Card Rate Report. National Average Low Interest Business This is because your current balance continuously updates according to your account activity to show you purchases, payments deposits and interest even after your current billing cycle has closed.

The same is true if you were to make a payment after your billing cycle ended and did not make any other purchases. Any amount not paid on your statement balance by the due date will roll over into the next month and start to accrue interest and depending on the credit card agreement, possibly finance fees.

You can set up automatic bill pay to allow your credit card issuer to withdraw the minimum payment amount from your bank each month to avoid missing or making a late payment; both of which can negatively impact your credit score. If you end up having additional money to put toward your credit card bill at a later date, you can always make an additional payment. Each month, typically at the end of the billing cycle, your credit usage will be reported by your credit card issuer to the Consumer Credit Bureaus.

You can check with your credit card issuer to find out which balance is being reported and when. Your credit utilization rate is one of the most important factors in your credit score, which means it can impact your approval odds for new credit cards as well as your ability to access better interest rates and higher credit limits. You can expect your credit score to be consulted whenever you want to finance a large purchase such as a home, RV or car or even rent an apartment.

The decision to pay your statement balance in full or pay your current balance each month will ultimately depend on your financial preferences. The key is to understand the difference between the two balances so that you can make the best decisions to better manage your debt, reach your financial goals and get the most value from your credit cards.

Chauncey grew up on a farm in rural northern California. At 18 he ran away and saw the world with a backpack and a credit card, discovering that the true value of any point or mile is the experience it facilitates. He remains most at home on a tractor, but has learned that opportunity is where he finds it and discomfort is more interesting than complacency. She has visited over 45 countries and lived in Thailand, China, and Ireland where her son was born. Her kids have over 20 stamps in their own passports.

Her passion lies in showing families how to travel more while keeping their savings and sanity. Her guidebook, Disney World Hacks, is a bestseller on Amazon.

Before you apply for a personal loan, here's what you need to know. Many or all of the products here are from our partners. We may earn a commission from offers on this page. Terms may apply to offers listed on this page. Part of managing your personal finances is handling credit card bills. If you use credit cards regularly, knowing your outstanding balance can help you keep track of how much you owe a credit card company.

But what is an outstanding balance? Keep reading to find out what an outstanding balance is and how it affects you. An outstanding balance is the amount you owe on any debt that charges interest, like a credit card. Most often, it refers to the amount you owe from purchases and other transactions made with your credit card.

It's also called your current balance. Your outstanding balance is what you currently owe on your card and can include:. Card issuers assign specific credit limits spending limits on your cards. Your outstanding balance helps determine how much much credit money left to spend you have available.

To find out how much you have left, simply subtract your outstanding balance from your credit limit. Don't forget to include any charges that haven't shown up on your credit card account yet. Knowing your outstanding balance gives you a more complete view of your credit card debt. Here's a look at some of the details you should know about outstanding balances. Access your credit card account to find your outstanding balance.

Most credit card issuers provide access online and through a mobile app. You can also call the card issuer's customer service phone line to get your outstanding balance.

Usually, credit cards list the issuer's customer service phone number on the back of the card. Then, you log in to your credit card app.