How to Check Balance on Capital One Mastercard
August 26, 2021 | 6 min read
What Is a Credit Card Balance?
Understanding credit card balances can help you make smart financial decisions and build good credit with responsible use
August 26, 2021 | 6 min read
Your credit card's balance is the total amount you owe. However, understanding your card's different balances might be a bit confusing at first. You may see "previous balance" and "new balance" when reading your credit card statement. Or even "current balance" if you're checking your account online.
Your statement balance is the sum of all the charges and payments you made during one billing cycle. And your current balance is a more real-time view of what you owe on your credit card. Learning how these different credit card balances work can help you budget for the coming weeks and months, and make strategic—potentially money-saving—decisions.
Credit Card Statement Balance: Definition and Meaning
A statement balance tells you how much you owe at the end of one billing cycle, which is typically 20-45 days. It's the total of all your purchases, fees, interest and unpaid balances, minus any payments or credits.
At the end of each billing cycle, you'll receive a statement with your previous balance and a new balance. If you pay your statement balance in full every month, you generally won't pay any interest or fees on purchases.
However, you can make a minimum payment or pay something between the minimum and full statement balance. When you do, the remainder of your statement balance gets carried or "rolled over" to the next statement.
How Is the Statement Balance on a Credit Card Calculated?
Your statement balance is like a snapshot of your credit card balance at the end of a billing cycle.
That statement balance won't change until the end of the next billing cycle. And consistently paying off your full statement balance by the due date can help you avoid paying interest.
Another important thing to remember is that some transactions can lead to balances with different annual percentage rates (APRs). For example, cash advances may have a higher APR than purchases or balance transfers. And if your card has an introductory APR offer, you may temporarily receive a 0% APR on balance transfers or purchases—or both.
Keep in mind, your minimum payment due may be applied to the balance with the lowest APR first. Review your card's terms or ask your card issuer how types of balances accrue interest and how your payments will be applied.
Does a Credit Card Balance Affect Credit Scores?
Credit card issuers typically report your balance information to the credit bureaus after each billing cycle. But the exact timing can be different for each issuer. And because your credit report shows the balance on your card when the issuer reported the information, the amount might be different from your most recent statement balance.
Also, credit-scoring companies use your credit utilization ratio when calculating your credit score. And your credit card balance at the time it's reported to the bureaus can impact this.
Your credit utilization ratio measures how much credit you're using compared to the amount you have available. According to the Consumer Financial Protection Bureau, experts recommend keeping your credit utilization below 30% of your available credit.
If you use your card a lot and can afford to make a payment early, paying down your current balance—while not always required—can help reduce your credit utilization ratio. And that in turn can help improve your score.
Is It OK to Carry a Credit Card Balance?
Carrying a balance may be a necessity if you can't afford to pay your bill in full each month. But a lower balance can be better for your credit scores because it can result in a lower utilization ratio.
Credit scoring aside, regularly carrying a balance can be costly. Once you're revolving a balance, your purchases can start quickly accruing interest.
If you need help consolidating debt or getting a lower interest rate, you might consider a balance transfer. This lets you move unpaid debt from one or more accounts to a new or different credit card. It could help you consolidate debt or get a lower interest rate, which could help you pay off your debt faster.
Monitor Your Balance and Credit
Understanding and checking your credit card balance can be an important part of managing your finances. You'll know how much available credit you have and can prepare for the bill that will be coming soon.
You can also monitor your credit to see how your most recently reported balance impacts your scores. CreditWise from Capital One is a free tool that lets you monitor your VantageScore® 3.0 credit score. Using CreditWise to keep an eye on your credit won't hurt your score. And it's free for everyone, not just Capital One customers.
Learn more about Capital One's response to COVID-19 and resources available to customers. For information about COVID-19, head over to the Centers for Disease Control and Prevention.
Government and private relief efforts vary by location and may have changed since this article was published. Consult a financial adviser or the relevant government agencies and private lenders for the most current information.
We hope you found this helpful. Our content is not intended to provide legal, investment or financial advice or to indicate that a particular Capital One product or service is available or right for you. For specific advice about your unique circumstances, consider talking with a qualified professional.
Your CreditWise score is calculated using the TransUnion® VantageScore® 3.0 model, which is one of many credit scoring models. It may not be the same model your lender uses, but it is one accurate measure of your credit health. The availability of the CreditWise tool depends on our ability to obtain your credit history from TransUnion. Some monitoring and alerts may not be available to you if the information you enter at enrollment does not match the information in your credit file at (or you do not have a file at) one or more consumer reporting agencies.
How to Check Balance on Capital One Mastercard
Source: https://www.capitalone.com/learn-grow/money-management/what-is-credit-card-balance/
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