 TITLE: Credit Card Balance and Statement Balance: What’s the Difference? CONTENT: Each credit card has a billing cycle, which is typically about 30 days. (You can find details about your billing cycle in your cardholder agreement.) The statement balance represents an overview of all credits and debits on your credit card account within a specific billing cycle. In addition to any purchases and payments you made during that time period, the statement balance also includes any fees, interest or penalties charged by the credit card company and any credits that have been issued (such as when you return a purchase). The statement balance is generated on the last day of the billing cycle—the _closing date_.\nIf you want to avoid being charged interest, you'll need to pay the statement balance in full each month. Otherwise, the part of the statement balance that you don't pay will carry over to the next month and will begin to accrue interest. If you can't pay off the statement balance in full, be sure to at least make the minimum payment so you can avoid late payment fees and their negative effect on your credit score. END