Credit Card Balance

AAA

DEFINITION of 'Credit Card Balance'

The amount of charges, or lack thereof, owed to the credit card company. A new credit card balance can take up to 24 hours to update, once a payment has been made, depending on the credit card company and method of payment involved. The balance can be zero, positive or negative, depending on if nothing is owed, if something is owed or if a payment is made over what is owed respectively.

INVESTOPEDIA EXPLAINS 'Credit Card Balance'

Typically, the ideal situation is to have a zero credit card balance, to avoid the high interest rates that come with a positive credit card balance. If there is a positive credit card balance, making more than the minimum monthly payment will help pay it down faster resulting in less interest owed.

RELATED TERMS
  1. Debit Card

    An electronic card issued by a bank which allows bank clients ...
  2. Credit Card

    A card issued by a financial company giving the holder an option ...
  3. Open-End Credit

    A pre-approved loan between a financial institution and borrower ...
  4. Credit Limit

    The amount of credit that a financial institution extends to ...
  5. Line Of Credit - LOC

    An arrangement between a financial institution, usually a bank, ...
  6. Card-Not-Present Fraud

    A type of credit card scam in which the customer does not physically ...
Related Articles
  1. Personal Finance

    What are some common catches that come with credit card reward programs?

    Read the fine print of credit card cash back rewards programs before assuming they are an easy way to cut down on credit card expenses.
  2. Credit & Loans

    Credit, Debit And Charge: Sizing Up The Cards In Your Wallet

    Not all plastic is equal! Learn the difference between the three kinds, and how each can affect your finances.
  3. Credit & Loans

    Take Control Of Your Credit Cards

    The plastic in your wallet doesn't have to hurt your finances. Learn how to manage it responsibly.
  4. Retirement

    Understanding Credit Card Interest

    Paying these rates can impact your disposable income and your investment returns.
  5. Credit & Loans

    Expert Tips For Cutting Credit Card Debt

    Managing your debt could mean the difference between spending $45,000 or saving $184,000.
  6. Personal Finance

    Looking To Clear Up Your Credit Report?

    If you look at your credit report you might see any number of various items that are harmful to your credit score, but you can learn how to remove them.
  7. Personal Finance

    How To Find A Job With Poor Credit?

    It's not legal for an employer to refuse to hire you for having bad credit, but he doesn't have to say that you weren't hired because of your bankruptcy.
  8. Credit & Loans

    Capital One Cards: VentureOne Vs. Venture Rewards

    Which Capital One rewards credit card offers the best deal for you?
  9. Credit & Loans

    Credit Card Review: The Amazon.com Rewards Visa

    The rewards from
  10. Credit & Loans

    Credit Card Review: Southwest Rapid Rewards Cards

    Do Southwest Airlines' free checked bags make one of their credit cards a good choice for you?

You May Also Like

Hot Definitions
  1. Command Economy

    A system where the government, rather than the free market, determines what goods should be produced, how much should be ...
  2. Prospectus

    A formal legal document, which is required by and filed with the Securities and Exchange Commission, that provides details ...
  3. Treasury Bond - T-Bond

    A marketable, fixed-interest U.S. government debt security with a maturity of more than 10 years. Treasury bonds make interest ...
  4. Weight Of Ice, Snow Or Sleet Insurance

    Financial protection against damage caused to property by winter weather specifically, damage caused if a roof caves in because ...
  5. Weather Insurance

    A type of protection against a financial loss that may be incurred because of rain, snow, storms, wind, fog, undesirable ...
  6. Portfolio Turnover

    A measure of how frequently assets within a fund are bought and sold by the managers. Portfolio turnover is calculated by ...
Trading Center