What is a Statement Balance on a Credit Card?

1. Billing

Cycle: A billing cycle refers to the recurring period during which a credit card issuer calculates and records a cardholder's financial activities, transactions, and charges. Billing cycles are typically onemonthinduration,

2. Payment Due Date:

The payment due date is the deadline set by the credit card issuer for the cardholder to make a payment toward their outstanding balance. This date is specified on the monthly billing statement, which is generated at the endofeachbillingcycle.

3. Statement Balance

Calculation: The statement balance is calculated by summing up all the eligible transactions, charges, and fees that have been posted to a credit card accountduringaspecificbillingcycle. This balance is then presented on the monthly billing statement that the credit card issuer sends to the cardholder.

4. Minimum Payment:

The minimum payment is the smallest amount a credit card holder is required to pay to the credit card issuer by the payment due date in order to keep their account in good standing and avoid late payment fees and negative impacts on their credithistory.

Paying the statement balance involves settling the entire outstanding amount listedonacreditcard'sbillingstatement for a particular billing cycle. This practice is generally recommended for cardholders who want to avoid accruing interest charges on their credit card debt.

5. Paying the Statement Balance: