What is a Credit Card Balance? Definition, Benefits and More

Updated on: 13 Jun 2024

Regularly checking your credit card balance is a healthy financial habit as it indicates the amount you owe your credit card issuer. Regular balance tracking is the key to financial planning because it makes budgeting easier. It also helps you avoid late payment and interest charges as you can plan the payment in advance.

Read on to understand the meaning of outstanding and previous balance in credit card, why it is important to check and more.

What is a Credit Card Balance?

In simple terms, it is the outstanding balance on your credit card for a given cycle. Issuers generate a bill every month and the total due mentioned on it is the balance you need to pay. Here are some essential points to know:

It is the total of all debit (payment) and credit (receipt) transactions
Your outstanding balance increases with every payment
The balance decreases when there is a credit transaction or if you pay your bill in part or full
The outstanding balance differs from your card limit, which is the maximum amount you can use

It includes the following:

Any purchases, payments and cash advances are also included
Any refunds or fee reversals are also a part of calculating the due amount
The interest accrued on previous balances is also added to the balance
It also includes charges, such as late payment fees, annual renewal charges as well as cash advance charges

What is the Previous Balance in Credit Card?

The previous balance in a credit card means the dues from the previous billing cycle. In simple terms, it is the amount carried forward from your last billing cycle to your current one. Here are some points to note:

If you carry over a balance, the issuer will charge interest on that amount
It is mentioned as the opening balance on your statement since it is the amount due at the start of the billing cycle
Having a previous balance means you will not have any interest-free period in the subsequent cycle

Why Should You Check Your Credit Card Balance?

Here are some reasons why it is essential to check your card balance:

To Know Your Outstanding Amount

When you check your credit card details, it will indicate how much you owe your credit card company. This allows you to plan your finances and budget better and you can pay your dues faster.

To Check for Fraudulent Activities

If your credit card balance increases when you have not used your card, this could be due to fraudulent activity. You can report such an incident to your issuer and block your card.

To Monitor Your Available Balance

Regular credit card limit check allows you to know your available limit. This saves you from overspending and helps avoid payment rejection due to low or insufficient balance.

Also Read: Benefits of Using Credit Cards

How to Check Credit Card Limit and Balance

Follow these options to check your card balance and limit:

Monthly Credit Card Statement

Banks and credit card providers generate your credit card bill at the end of every billing cycle. Some financial institutions deliver your credit card to your address, while others may send it through email. With this statement, you can check your outstanding balance, credit card limit and other details.

Net Banking

Through this option, you can initiate a quick credit card limit check by logging into your issuer’s net banking portal. Once you log in with your credentials, you can find your balance on the dashboard or under the ‘Account’ section.

Mobile Banking

Mobile banking is another popular method to execute easy and fast credit card details checks. Download your issuer’s app and log in with your customer ID and password.

If you have not registered for a mobile banking facility, you can contact your bank and register. Once registration is complete, you can check your balance, credit card limits, due date and other details anytime from your mobile.

Nearest ATM

You can also visit the nearest ATM and check your balance. Just enter your credit card into the machine slot, provide your card PIN and select the option to check the balance. In a few seconds, your balance will be displayed on the screen and you will receive a receipt with the same.

Customer Care

Most credit card providers have 24X7 customer care service available. You can call that number and enquire about your card balance and outstanding limit. The representatives will generally ask for some details to verify your identity before disclosing the details.

Visiting the Branch

You can also go to your issuer’s office and ask the banking executive to provide your card details.

How to Pay Outstanding Balance on Credit Card

Here’s how you can pay off the outstanding balance on your credit card:

Online Methods:

BillDesk
Internet banking
Mobile wallets
Auto Debit Facility
Online fund transfers via NEFT, IMPS or RTGS

Offline Methods:

ATM
Customer Support Service
Cheque or Demand Draft
Over-the-counter

The steps for these modes will depend on the issuer and the payment option you choose. To know the exact process, you can contact the issuer or check the website. That said, online options are generally more straightforward than offline.

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FAQs on Credit Card Balance Check

What is the outstanding balance on the credit card?

Outstanding balance, also known as your credit card due amount or balance, is the net payable amount on your credit card bill. It is a total of all the debit and credit transactions, and you must pay it before the due to avoid additional charges and loss of interest-free period.

What is a credit balance?

Every time you use your credit card, the amount is added to the outstanding balance of your credit card. In simple words, this is the amount you have utilised from your credit card limit. Initiating a credit card details check helps you monitor it with ease.