Credit Card Statement Balance Explained FAST (Payment Basics 2/4)

The statement balance on your credit card is simply the accumulation of everything that occurred during the billing cycle (about 30 days) and any interest or fees that have accrued as well. You'll have about 25 days to pay off at least the minimum payment before the final due date. If you pay off the statement balance in full each month by the due date, you'll be using an interest free credit card. If you don't pay off the entire statement balance in full each month, you'll lose your grace period and you'll be charged interest on all your new future purchases until you pay off the entire statement for 2 months in a row.