Statement Balance
GeneralGlossary term
Definition
The total amount owed on a credit card at the end of the billing cycle. Paying this amount in full by the due date avoids interest charges and maximizes the grace period.
Related terms
- Billing CycleThe period between credit card statements, typically 28-31 days. Purchases made during this cycle appear on the next statement and are due 21-25 days after the statement closing date.
- Minimum PaymentThe smallest amount you must pay each month to keep the account in good standing, typically 1-3% of the balance or $25-35, whichever is greater. Paying only the minimum results in expensive long-term interest.
- Grace PeriodA period after a payment due date during which you can pay without penalty. Credit cards typically offer 21-25 days; student loans often offer 6 months after graduation.
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