Outstanding balance what does it mean

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We may earn a commission from offers on this page. Terms may apply to offers listed on this page. Part of managing your personal finances is handling credit card bills.

If you use credit cards regularly, knowing your outstanding balance can help you keep track of how much you owe a credit card company. But what is an outstanding balance? Keep reading to find out what an outstanding balance is and how it affects you. An outstanding balance is the amount you owe on any debt that charges interest, like a credit card.

Most often, it refers to the amount you owe from purchases and other transactions made with your credit card. It's also called your current balance. Your outstanding balance is what you currently owe on your card and can include:. Card issuers assign specific credit limits spending limits on your cards. Your outstanding balance helps determine how much much credit money left to spend you have available.

To find out how much you have left, simply subtract your outstanding balance from your credit limit. Don't forget to include any charges that haven't shown up on your credit card account yet. Knowing your outstanding balance gives you a more complete view of your credit card debt. Here's a look at some of the details you should know about outstanding balances.

Access your credit card account to find your outstanding balance. Most credit card issuers provide access online and through a mobile app. Aggregate Outstandings means, at a particular time, the sum of a the Aggregate Letters of Credit Outstandings at such time and b the aggregate outstanding principal amount of all Revolving Credit Loans at such time.

Aggregate Credit Exposures means, at any time, in respect of a the Term Facility, the aggregate amount of the Term Loans outstanding at such time and b in respect of the Revolving Credit Facility, the sum of i the unused portion of the Revolving Credit Facility at such time and ii the Total Revolving Credit Outstandings at such time.

Revolving Outstandings means, at any time, the sum of a the aggregate principal amount of all outstanding Revolving Loans, plus b the Stated Amount of all Letters of Credit. Outstanding Balance of any Receivable at any time means the then outstanding principal balance thereof. Aggregate Outstanding Principal Balance means, as of any date of determination, the sum of the Outstanding Principal Balances of each Class of Notes outstanding on such date.

Even though the names are different, outstanding balance and current balance mean the same thing. Statement balance refers to the amount of money you owe based on the last statement, or bill , that you received. It also might be shown as monthly balance or new balance. This dollar amount may or may not be the same as the outstanding balance. The statement balance reflects all of the purchases, interest charges , fees and other items that accrued during the most recent monthly billing cycle.

The billing cycle is a specific time period between billing statements. So, one billing cycle might run from May 9 the opening date to June 8 the closing date. Keep in mind that the statement balance remains the same until the credit card issuer sends the next monthly statement.

However, the statement balance and outstanding balance may or may not match. If there has been activity between monthly statements, the statement balance and outstanding balance might be different. If there has not been any activity between monthly statements, the statement balance and outstanding balance might be identical.

See related: Does carrying a balance help your credit? The decision depends on your financial situation at the time. The statement balance often exceeds the minimum amount due that appears on a monthly statement. Paying the full statement balance is a smart way to escape interest charges.

Paying the statement balance will take care of that. But if you pay the entire outstanding balance, you can lower your credit utilization ratio. This ratio refers to the amount of money you owe on all of your credit cards divided by the total of the credit card limits on your cards. Why is the credit utilization ratio important? Outstanding Balance means, at any time of determination , with respect to any Receivable , the then outstanding principal balance thereof.

Examples of Outstanding Balance in a sentence Outstanding balance of Rs. Outstanding Balance means, with respect to any Receivable , as of any date of determination , the amount which amount shall not be less than zero equal to a the Billed Amount thereof , minus b all Collections received from the Obligor thereunder , minus c all discounts to, or any other modifications by, the Originator , the Borrower or the Servicer that reduce such Billed Amount; provided , that if the Administrative Agent or the Servicer makes a good faith determination that all payments by such Obligor with respect to such Billed Amount have been made, the Outstanding Balance shall be zero.