All the different amounts on your credit card bill can be confusing. On top of that, you may be wondering how you should pay your credit card bill to avoid interest (finance charges) and maximize your credit scores.
This is a guide to help you understand what amount of money you should pay, when you should pay, and why.
Here’s the quick version: we recommend you always pay the full statement balance by the due date. This makes it easy to stay out of credit card debt while avoiding expensive interest and fees. Paying in full and on time may also help you to establish positive credit history. Read on to find out why.
The New Balance here is the amount due for this statement period. It’s also sometimes called the Statement Balance or Outstanding Balance.
Under the Account Summary section, you can see this statement is for the billing cycle from 11/27/2017 to 12/26/2017. The New Balance is the amount I owed on 12/26/2017 when this statement was generated. At the top of the Account Summary section you can also see that my previous balance was $482.42, which I paid in full during this past statement period, when it was due.