How to Check Credit Card Balance?

With more than 100 million active cards across India, credit cards have become extremely important financial instruments for us.

However, it is important to be aware of the potential downsides of credit card usage like overspending and excess debt. Therefore, you must know how to check your credit card balance.

In this comprehensive guide, we have discussed why it is important to check your credit card balance and how to know your credit card balance through multiple methods.

Suggested Reading: How to Check Credit Card Application Status?

What is a Credit Card Balance?

Credit card balance, also known as outstanding balance, is the total amount of money you owe to the credit card issuer. Your credit card balance increases when you make purchases and reduces when you make payments.

It includes all purchases, cash advances, balance transfers, interest charges, and fees that have been applied to your account. At the end of a billing cycle whatever amount is remaining in your credit card balance gets carried over to the next month’s bill.

Your credit card balance changes each billing cycle depending on your expenditure. To avoid incurring interest on your outstanding balance it is advisable to pay it off in full before the due date.

How to Know Credit Card Balance in Different Ways?

If you are wondering - how can I check my credit card balance, there are several ways to do that successfully. These are as follows:

Online Banking:

• Log in to your credit card issuer's online portal or mobile app.

• Navigate to the account summary section to view your balance.

Mobile App:

• Use your bank or credit card issuer’s mobile app.

• Log in and check your account balance in the app’s account summary section.

Monthly Statements:

• Review your monthly credit card statements, either on paper or digitally.

• The statement includes your balance, transactions, and payment due date.

Customer Service:

• Call the customer service number on the back of your credit card.

• Follow the prompts or speak with a representative to check your balance.

ATMs:

• Use your credit card at an ATM to check your balance.

• Note that some ATMs may charge a fee for this service.

SMS Alerts:

• Register for SMS banking services with your credit card issuer.

• Send a specified keyword (e.g., "BAL") to the designated number to receive your balance via SMS.

Bank Branch:

• Visit the nearest bank branch that issued your credit card.

• Speak with a teller or use an available ATM to check your balance.

Why is it Important to Check Credit Card Balance?

Below we have stated why it is extremely important for you to check your credit card balance.

• Prevent Overspending 

When you are out of funds, a credit card gives you access to funds for making purchases. Thus, you might loosen your control over your expenses and make expensive purchases, leaving you in debt. 

It will also incur additional fees on your credit card bill statements. Hence, it is absolutely essential for you to monitor your credit card balance frequently.

• Manage Debt

When you know how to check your credit card balance, you can ideally prevent accumulating unmanageable debt.

• Prevent Credit Card Bill Defaults

Most credit card bill defaults occur when you don’t meet your payment deadlines either by forgetting the due dates or by maxing out your card limit and being unable to have funds to make any payments. In either case, you end up paying penalties. 

Thus, you can save yourself from this spot by knowing how to check your credit card balance and preventing defaults.

• Improve Credit Score

Maintaining a low balance relative to your credit limit helps improve your credit utilization ratio, positively impacting your credit score.

• Detect Fraud

You can spot any unauthorized transactions promptly if you know your credit card balance or check it from time to time.

How is Credit Card Balance Calculated?

Also known as statement balance, your credit card balance denotes the total amount of money you owe to the credit card issuer. You should make the repayment at least once every billing cycle. 

Your credit card balance is calculated by summing up all the transactions made during the billing cycle, including:

• Purchases

• Cash advances

• Balance transfers

• Interest charges

• Any applicable fees (late payment, annual fees, etc.)

The formula can be summarized as: 

Credit Card Balance=Previous Balance+New Charges+(Interest and Fees)−(Payments and Credits).