Learn more about Credit Balance Change Alerts

What is Credit Balance?

A credit balance is the amount of credit you have used on your card, including charges made, balances transferred, and cash advances (like ATM withdrawals). Credits paid in installments are also a factor in your credit utilization ratio, which is calculated by dividing the amount of credit you use by your total available credit.

Your Credit Balance amount changes monthly based on how you use your card.

Here are a few reasons for a change in balance:

• Purchases
• Balance transfers
• Foreign exchange
• Fees such as late payment charges, returned payment charges, and balance transfer fees
• Annual fees and cash advance fees
• Interest charges

What triggers a Credit Balance Change Alert?

You will receive this alert if your balance increases by a significant dollar amount compared to the previous balance.

This alert is based on the issuer reporting the balance to the bureau; hence, it might not be the latest information on the account.

How can you ensure your credit balance does not affect your credit score?

The best approach to managing your credit effectively is to pay your balance off in full. A zero balance helps avoid the interest charges associated with maintaining a balance. If you have no other option, try paying more than the minimum monthly payment. This takes off more of the balance which accumulates less interest that you will owe to the card issuer.

Why are Credit Balance Alerts important?

• Avoiding high credit utilization
• Tracking unexpected changes like potential fraud or billing errors