It’s easy to swipe a credit card and lose track of exactly how much you’re spending. That’s why it’s critical to check your credit card balance on a regular basis. By checking your credit card balance, you’ll know how much you owe so you can make payments or adjust your spending accordingly.
As for how to check a credit card balance, you can do so online, over the phone, or on the monthly statement that comes in the mail. Keep reading to learn more about how to check a balance on a credit card and why your credit card balance matters.
What Is a Credit Card Balance?
There are two different types of balances consumers will come across when it comes to their credit cards: current balances and statement balances.
The statement balance is the total balance owed at the end of the billing cycle. If someone wants to avoid paying interest, they need to pay off their statement balance in full each month. The current balance, on the other hand, is the total amount owed plus any fees, charges, credits, and payments that have been added to the account since the billing cycle ended. Given how credit cards work, it’s not necessary to pay the entire current balance to avoid interest charges.
In addition to their current balance and statement balance, each month the cardholder will also be told what their credit card minimum payment is. This is the lowest amount of their balance that they can pay in order to remain in good standing with their credit card issuer. They’ll need to pay interest on the remaining unpaid balance.
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Why Is It Important to Know Your Balance?
A credit card balance represents the total amount owed to the credit card issuer. If the cardholder wants to avoid paying interest on their remaining balance, they’ll need to pay off their credit card balance in full each month. So, for budgeting purposes, it’s helpful to know what that balance is.
A credit card balance also can indicate how high or low someone’s credit utilization ratio is. This ratio compares how much credit someone is using to how much credit they have available based on their credit card limits. It’s generally advised to keep your credit utilization ratio under 30% — but the lower, the better. Paying off a credit card balance in full each month can also help keep credit utilization low.
Additionally, checking your credit card balance each month can allow you to spot any unusual or potentially fraudulent charges on your credit card. If anything is amiss, you could then quickly contact your issuer and dispute the credit card charge. This could result in a credit card chargeback, allowing you to get the money back.
Reviewing a credit card statement can also help consumers identify where to cut back their spending so they can save more or afford to pay down more credit card debt.
How to Check a Credit Card Balance
Even if you’re confident you can pay off your balance in full each month, it’s smart to stay on top of your credit card balance for the reasons mentioned above. Read on to learn how to check the balance on your credit card.
Log In to the Mobile App or Go Online
Thanks to mobile banking and credit card apps, it only takes a few seconds to check a credit card balance from a smartphone. These mobile apps are helpful for checking a credit card balance on the go. It’s also possible for consumers to check their credit card balances by logging onto their online accounts from a computer, smartphone, or tablet.
Call the Card Issuer
It’s also possible to call the credit card issuer directly to confirm what your current credit card balance is. The phone number to call is printed on the credit card and also listed on the credit card issuer’s website. Keep in mind your issuer may provide different numbers to call depending on your reason for calling.
Send a Text to Your Bank
Don’t love making phone calls? Some banks and credit card issuers also allow account holders to text them to check their account balance, which is a speedy and convenient way to get an update.
Check Paper Statements
Each month, the account holder will receive a paper credit card statement through the mail or over email. The Account Summary section of the statement will outline what the statement balance on the credit card as well as the following details, which are given what a credit card is:
• Payments and credits
• New purchases
• Balance transfers
• Cash advances
• Past due amount
• Fees charged
• Interest charged
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The Takeaway
As you can see, making a point to regularly check your credit card balance is smart for a number of reasons. In addition to helping you stay on top of your spending and how much you owe, it can also help you to monitor your credit utilization and check charges for any fraudulent activity. Checking your credit card balance is easy to do online, over the phone, via text, or on your credit card statement.
Whether you're looking to build credit, apply for a new credit card, or save money with the cards you have, it's important to understand the options that are best for you. Learn more about credit cards by exploring this credit card guide.
FAQ
Can you transfer a balance to a new credit card?
It’s possible to transfer a balance from one credit card to a new one by using a balance transfer credit card. Typically, balance transfer cards come with a low or 0% introductory APR, which makes it possible to pay down debt without spending too much on interest for a temporary period of time. Keep in mind that balance transfer fees will typically apply.
What is a credit card balance refund?
When someone pays off their credit card balance before getting a refund for a purchase they made, that results in what is known as a negative credit card balance. To get that money back, you can either request a refund or wait for the funds to get applied to future credit card balance.
What happens if I overpay my credit card balance?
If someone overpays their credit card balance for whatever reason, they can either have that balance applied to a future purchase or they can request a credit card balance refund.
What does a negative balance on a credit card mean?
Having a negative credit card balance means that someone has a credit card balance that is below $0. For example, if someone pays off their credit card balance and then requests a refund from a merchant for $250, they would end up with a negative balance of $250. The credit card issuer would then owe that money to the account holder.
What happens if you cancel a credit card with a negative balance?
If someone chooses to close a credit card that has a negative balance, they need to request a refund before they close their account as they won’t be able to apply that negative balance to a future bill. Some credit card issuers will issue this refund automatically, but it’s best to confirm the refund is happening before closing an account.
Photo credit: iStock/milan2099
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Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
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