Outstanding Balance Explained (2024)

FAQs

What is outstanding balance in simple words? ›

Outstanding balance refers to the amount still owed on a loan from the perspective of a borrower or lender. Remaining balance instead refers to how much money remains in an account after spending or a withdrawal, from the perspective of a saver or savings bank.

The average outstanding balance is the average amount of money owed on a credit account over a period of time. It is calculated by adding up the outstanding balance on a credit account at the end of each day or billing cycle, and dividing it by the total number of days or billing cycles.

An outstanding balance on a credit card is the amount of money you owe the minute you check your account. This amount includes all charges on your account you have not paid for, including recent purchases you may have just made.

Outstanding balance definition

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: Purchases.

Since about 30% of the score is based on the debt amount a borrower owes at a given date, a larger outstanding debt of a past loan lowers the CIBIL score, or the credit score. This, in turn, affects the loan eligibility for future loans. It may also have a subsequent impact on loan interest rates offered by banks.

Paying the outstanding balance is an excellent option if you can afford to do so. By submitting a payment in the amount of your current balance, you'll have completely paid off your credit card bill, thus avoiding interest charges.

Consider the snowball method of paying off debt.

This involves starting with your smallest balance first, paying that off and then rolling that same payment towards the next smallest balance as you work your way up to the largest balance. This method can help you build momentum as each balance is paid off.

Total outstanding is the amount that customers owe to the company as on date. It is calculated by deducting the total credit amounts from the total debit amount. Calculation: Total Outstanding = [(Total Debit amount as on date) - (Total Credit amount as on date)].

As previously mentioned, the total outstanding balance indicates the unpaid amount that remains on your credit card. This figure takes into account a number of different expenditures, including purchases, transfers, cash in advance, interest charges and fees.

Paying the full outstanding balance each month is ideal. It helps you avoid interest charges and maintain a good credit score. If paying in full isn't feasible, at least aim to pay the minimum due to avoid late fees and adverse credit reporting.

Is outstanding balance the same as payoff amount? ›

Your payoff amount is different from your current balance. Your current balance might not reflect how much you actually have to pay to completely satisfy the loan. Your payoff amount also includes the payment of any interest you owe through the day you intend to pay off your loan.

Current Outstanding is your total credit utilization on the card. This will include all the billed and unbilled spends, the principal of any purchase that is converted to EMI, etc. Total Amount Due is what needs to be paid for the current billing cycle.

But in order to avoid interest charges, you'll need to pay your statement balance in full. If you pay less than the statement balance, your account will still be in good standing, but you will incur interest charges.

Refinance debt

Refinancing debt to a lower interest rate can save you hundreds in interest and help you repay debt faster. You can refinance mortgages, auto loans, personal loans and student loans.

There's no penalty for overpaying your credit card. If the negative balance isn't significant and you use the card regularly, you can just spend the statement credit on purchases. Once you've spent it, you'll be using your regular credit line again. Request a refund.

OS stands for Outstanding Balance. The amount of money that a debtor still owes on a debt. This is the remaining balance of a debt after any payments have been made.

An outstanding amount is a balance you owe on any debt that incurs interest. Often, it refers to transactions made on your credit card. It is also called your current balance. Your outstanding amount on your credit card is what you currently owe on your card and can include: Purchases.

But in order to avoid interest charges, you'll need to pay your statement balance in full. If you pay less than the statement balance, your account will still be in good standing, but you will incur interest charges.