 TITLE: Credit Card Balance and Statement Balance: What’s the Difference? CONTENT: How Do Your Balances Affect Your Credit?\n----------------------------------------\nBoth your current balance and your statement balance affect your credit score. Each month, typically at the end of the billing cycle, credit card companies report your credit card usage to the three major credit bureaus—Experian, TransUnion and Equifax. The credit bureaus use your balance information as well as the total amount of revolving credit available to you to calculate your credit utilization ratio and determine what percentage of your available credit you are actually using.\nTo figure out what your credit utilization ratio is, simply divide the current balance on your credit card by the spending limit for that credit card. For instance, if you have a balance of $500 on a card that has a $1,000 credit limit, you're using 50% of your available credit on that card.\nYour credit utilization ratio is the second most important factor in your credit score. The lower your credit utilization ratio is, the better its effect on your credit score will be. If you're using too much credit, credit bureaus may take this as a sign that you're in financial trouble. Under the FICO® Score☉ and VantageScore® credit scoring models, a ratio of 30% or higher can negatively affect your credit score.\nPaying your statement balance in full each month can help you minimize your credit utilization ratio. However, if you pay the minimum payment on your credit card and let the rest of the statement balance carry over to the next month, your credit utilization ratio will increase. If the ratio goes above 30%, it may start to hurt your credit score. END