Credit Card Balance

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.


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