What is a Statement Balance on a Credit Card?

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• What is a Statement Balance on a Credit Card?

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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 one month in duration,
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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 end of each
billing cycle.
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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 account
during a specific billing cycle. This balance is
then presented on the monthly billing statement
that the credit card issuer sends to the
cardholder.
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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 credit history.
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5. Paying the Statement Balance
Paying the statement balance involves settling
the entire outstanding amount listed on a credit
card's billing statement for a particular billing
cycle. This practice is generally recommended for
cardholders who want to avoid accruing interest
charges on their credit card debt.
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