What Is Outstanding Amount on Credit Card & How to Manage It?

What Is the Outstanding Amount on a Credit Card and Why It Matters

Have you ever checked your credit card app and seen a number looking back at you under “Outstanding Amount”? It is easy to assume that it is just your last purchase or something you can deal with later. But in reality, this number tells a bigger story about your current credit card dues, and if not paid on time, it can exponentially grow into a bigger amount. If you are wondering what that “₹X” really means and how to stay on top of it, you are in the right place.

 

What does Outstanding Amount on Credit Card mean?

When it comes to managing credit cards, one of the most common (and often confusing) terms you will come across is “outstanding amount.” You might see it on your credit card statement, in your mobile banking app, or when you receive a reminder email from your card issuer.

But what does it actually mean? Is it the same as your total dues? Is it the amount you must pay immediately? Or is there more to it?

Let us break it down in simple terms so that you understand exactly what the outstanding amount is, how it affects you, and how to keep it under control. Whether you are a first-time credit card user or a seasoned spender, knowing this will help you in proper use of your credit card and handle any financial burden with ease.

 

What is the Outstanding Amount on a Credit Card?

The outstanding amount on a credit card is the total money you owe to the credit card issuer at any given point in time. It includes:

• Purchases you have made during your billing cycle
• Cash withdrawals (if any)
• Interest charges (if applicable)
• Late fees (if any)
• Any unpaid balance from the previous billing cycle

Just note it as overall payment dues with your credit card company.

For example, if you have used your BOBCARD to buy a laptop worth ₹30,000, withdrawn ₹5,000 in cash, and had an unpaid balance of ₹10,000 from the last month, your current outstanding amount will be ₹45,000 plus any applicable charges.

 

Why is it important to monitor the Outstanding Amount on a Credit Card?

1. To Avoid Interest Charges:

If you don’t pay the full outstanding amount by the due date, your credit card issuer will start charging interest on the balance. And this interest is often compounded daily, so it can grow fast. Monitoring your outstanding amount helps you plan your payments and avoid paying more than necessary.

2. To Protect Your Credit Score:

Your credit utilization ratio is the percentage of credit you have used compared to your credit limit and it affects your credit score. High outstanding amounts can hurt your score. By regularly tracking your balance, especially if you're using a BOBCARD with a high credit limit, you can keep your utilization ratio low and maintain a healthy credit profile.

3. To Avoid Overspending: 

It is easy to use your card without realizing how much you have spent. Knowing your current outstanding amount acts like a gentle reminder, it helps you stay financially grounded and avoid over spending. If you own a BOBCARD, you can anytime view your card spends by logging into your online card account at BOBCARD app or customer portal.

4. To Prepare for EMIs or Large Payments: 

If you have opted for EMIs or have upcoming payments, knowing the outstanding amount helps you prepare in advance. Cards like BOBCARD offer flexible EMI options, with tenures ranging from 6 to 48 months, using which you can convert your spends >₹2500 into easy installments but only when you know how much you have already used.

 

Difference Between Outstanding Amount and Statement Balance

Many people mistakenly assume that the outstanding amount and the statement balance are the same, but they actually refer to two different amounts on your credit card account. While both relate to what you owe, the timing and transactions they cover are different, which can impact how much you pay and when. Understanding this difference is important to avoid underpaying, overpaying, or getting hit with unexpected interest charges.

Here’s the difference:

Statement Balance: The total amount you owed at the end of your billing cycle. This is the amount mentioned on your monthly credit card statement.

Outstanding Amount: The real-time total amount you owe at any given time, including new transactions made after the last billing cycle.

For e.g: Let’s say your BOBCARD billing cycle ends on the 20th of every month. Your statement balance as of 20th June is ₹20,000. But on 22nd June, you buy a phone worth ₹25,000.

Now, your statement balance is still ₹20,000, but your outstanding amount becomes ₹45,000.

Why it matters: If you only look at your statement balance, you might miscalculate your dues. Always check your outstanding amount for your actual overall current dues.

 

How to reduce the Outstanding Amount on your Credit Card

Paying off your total credit card dues is always ideal. However, it may not always possible due to many reasons. You can follow these smart ways to still reduce your outstanding amount:

1. Pay More Than the Minimum Due: 

Credit cards usually mention a minimum due amount you must pay to avoid late fee and interest charges. But paying only this amount means your remaining balance continues to attract interest.

Pro tip: Always try to pay more than your minimum due. Ideally the total outstanding amount to avoid falling into a debt spiral.

2. Convert Big Spends into EMIs:

If you have made a large purchase, you can convert it into manageable EMIs with lower interest. BOBCARD, for e.g, offers EMI conversion options that can be easily applied from the BOBCARD app or portal, making repayments easier on your monthly budget.

3. Use Cashback or Rewards:

Some cards offers you features like redeem cashback or reward points to pay off your card dues. With cards like BOBCARD, your credit card spends earn you points that can be redeemed as cashback.

4. Avoid Further Spending Until You Repay: 

If your outstanding amount is rising, it is wise to pause new purchases on your card until you have cleared a significant portion of the existing dues. This keeps interest charges under control.

5. Set Up Auto-Pay or Reminders: 

Missing payments can worsen your outstanding dues due to penalties and daily interest charge. Set up an auto-debit or calendar reminders to stay consistent with payments. If you are using a BOBCARD, you can avail multiple payment options, including UPI, Net banking, Auto-debit, etc. to clear your outstanding amount with ease.

 

Conclusion

The outstanding amount on your credit card is more than just a number, it is a summary of your current financial dues. Keeping an eye on it helps you make smarter spending decisions, avoid interest, protect your credit score, and protect your financial freedom.

It is not about fearing your credit card, rather it is about understanding it and using it smartly.

And with a card like BOBCARD, that journey becomes even smoother. With real-time tracking, multi-platform reminders, and flexible repayment options, managing your outstanding amount becomes stress-free and empowering.

Because in the end, financial freedom doesn’t come from how much you spend, it is sum total of how wisely you repay.