This is because you could have made a payment before the statement balance was determined but the payment had yet to hit the account. This could also be because a payment was made after the statement balance but before looking at the current balance.
Your credit card statement balance is what you owe at the end of a billing cycle, which is typically 20-45 days. It's the total of all the purchases, fees, interest and unpaid balances, minus any payments or credits since the previous statement.
Since it's looking at a specific period of past spending, your statement balance doesn't change until the end of the next billing cycle, when you will get a new statement.
How is this possible? Even though you paid off your account, there could have been residual interest from previous balances. Residual interest will accrue to an account after the statement date if you have a balance transfer, cash advance balance, or have been carrying a balance from month to month.
You're STILL making purchases on your credit card.
While you're paying off your debt and possibly paying more than the minimum, you're also accruing more debt because you continue to make purchases you cannot afford on your credit card.
If you want to stay in good standing with your credit card provider, then it's a good idea to pay off your statement balance each month. What's more, it means that you will avoid paying interest on your purchases.
There's a good reason for this. Your statement balance is a snapshot of all the expenses and payments that were made to your account during one billing cycle. Once your statement balance is generated, it won't change until your next billing cycle ends — but that doesn't mean your credit card balance won't change.
Pay the statement balance: This means paying exactly what's due. If you pay off the total statement balance by the due date, then you won't pay interest on purchases from the last billing cycle. Pay the current balance: This covers your statement balance plus any charges you've made since the end of the billing cycle.
Payment history (i.e., whether you pay your credit card bill on time) is the largest contributing factor to your FICO credit score, so making at least the minimum payment on your statement balance by the due date can help your score.
By paying early each month—or even better, zeroing out your entire balance—you reduce or eliminate your interest charges and receive greater value on your rewards.
Generally, pending transactions clear within one to five business days, but the exact timing depends on the type of transaction, the payment network, and the bank or credit card issuer.
Generally, your overpayment will appear as a credit in the form of a negative balance on your account. This negative balance will roll over towards any new charges you make or outstanding balances for the next month.
If you don't pay the full statement balance by the due date, you now have credit card debt and will be charged interest on the remaining balance. Perhaps more important: When you carry a balance, your credit card issuer eliminates your grace period for the next cycle.
It's a good idea to pay off your credit card balance in full whenever you're able. Carrying a monthly credit card balance can cost you in interest and increase your credit utilization rate, which is one factor used to calculate your credit scores.
Remaining Statement Balance is your 'New Balance' adjusted for payments, returned payments, applicable credits and amounts under dispute since your last statement closing date. Total Balance is the full balance on your account, including transactions since your last closing date. It also includes amounts under dispute.
The current balance that appears is your most recent statement balance plus other transactions since your last statement was generated. Once a billing cycle closes and a statement balance is paid, it is updated to reflect transactions made in the new billing cycle.
It's generally recommended that you have two to three credit card accounts at a time, in addition to other types of credit. Remember that your total available credit and your debt to credit ratio can impact your credit scores. If you have more than three credit cards, it may be hard to keep track of monthly payments.
Current balance contains how much the customer owes to remain current (typically their periodic payment amount), and payoff balance contains the amount the customer would have to pay to payoff the loan (typically the principal balance plus any accrued interest charges).
Typically that is at the end of the billing cycle and is usually the balance that appears on your monthly statement. If you used your credit card during that billing cycle your credit report will show a balance, even if you pay the balance in full after receiving your monthly statement.
Banks sometimes make mistakes by depositing or withdrawing incorrect amounts to bank accounts.
Some financial institutions will add the deposit to your available balance but will not add it to the current balance until they verify the check is good and receives funds from the issuing bank. The other reason could be that you have an overdraft protection line of credit from your financial institution.
Consider Consolidating Your Debt
Debt consolidation can be a good strategy if you have good credit and are feeling overwhelmed by the number of debt payments you have to make each month. Debt consolidation typically works best for paying off credit cards and personal loans.
Have you ever paid your credit card balance down and then found an unexpected interest charge on the next bill? That may be residual interest. Residual interest, also known as trailing interest is, in the most basic terms, the interest that's carried over billing cycles.
Basically, your balance is what you currently owe, and your payoff is what you owe plus interest that accrues from the statement date and a specific payoff date. If you'd like to pay off your loan early, check to see if there is a pre-payment penalty.