Unbilled vs. Outstanding Credit Card Balances: What you need to know

Navigating credit card statements sometimes becomes a little complicated, especially for new users. Two crucial terms that usually cause doubts are ‘unbilled amount’ and ‘outstanding balance.’

It is extremely important to understand the difference between the two clearly in a bid to avoid unnecessary charges and in proper credit card management.

What is the meaning of unbilled amount?

Unbilled amount is the total of all transactions made with your credit card during the current billing cycle before the statement is generated.

It can be thought of as a running tally of one's recent purchases that haven't yet been officially added to your bill. Usually this amount can be viewed through the online portal of the bank or its mobile application. Keeping a continuous check on the unbilled amount hence helps in tracking your spending and anticipation of one's upcoming statement.

What is the meaning of outstanding balance?

Outstanding balance on the other hand is the total amount you owe on your credit card after the billing statement has been issued. This also includes the previous unbilled amount along with applicable interest charges, late payment fees if any.

Further, it has the amount of any outstanding dues from previous cycles. The outstanding amount therefore is the amount one needs to pay to avoid incurring further interest charges and maintain a good credit score.

Key differences and why do they matter?

The main difference is in the timing. The unbilled amount is a pre-statement document. Whereas the outstanding balance is the official amount due. Keeping both in focus is vital.

Regular checking of your unbilled amount helps you stay within your budget and avoid surprises on your statement. Always pay at least the minimum amount due on your outstanding balance by the due date to avoid late fees and negative impacts on your credit score. To maintain a reputable credit score, paying the full outstanding balance each month is the most financially responsible approach to go by.

Hence, mastering the difference between unbilled amount and outstanding balance empowers you to manage your credit card properly and make the most of it.

How to check unbilled amounts on credit cards?

To check the unbilled amount a credit card user can use internet banking or the online banking platform of your financial institution can help you in checking your unbilled details. Apart from the same customer support services of your credit card company along with monthly statements can also provide the requisite details with regards to the unbilled amount. 

Hence, using online tools to track your spending, understanding your statement thoroughly and prioritizing paying your outstanding balance on time is crucial to have a pleasant experience while using credit cards on a longer term basis.

That is why a clear understanding between the unbilled amount and outstanding balance facilitates effective credit card usage and helps in sustaining a healthy credit history.

(Note: Using a credit card carries its own set of risks)