Why Your Balance Is Important to Know
Maintaining a good credit card balance is important for your credit score and your overall financial health. A high credit card balance can hurt your credit score, particularly when you’re using a large percentage of your credit limit. High balances also mean higher monthly minimum payments. You can tell whether credit card balances may be affecting your credit score by calculating your credit utilization ratio. This number shows the ratio of your credit card balances to their credit limits. In other words, it tells you how much of your total available credit is already “spent” and how much is available. It’s worth 30% of a credit score calculation, which makes it one of the most important factors in your score.
Calculating Your Utilization Ratio
You can quickly calculate your own utilization ratio, for all of your cards, and for each one individually. Start by making a list of all your credit cards. Write down the credit limit and the balance of each credit card (get these details by checking your online account or calling the customer service number on the back of your credit card). Then, for each credit card, divide the credit card balance by the credit limit. Multiply by 100 to convert the answer to a percentage. Any credit cards with balances over 30% could be affecting your credit score. Work to reduce those balances for a better credit score.
Check Your Credit Card Balance Over the Phone
Call the number on the back of your credit card to reach your card issuer’s customer service line. Enter your card number using your phone’s keypad and any other identifying numbers (like the last four digits of your social security number or your billing zip code) and follow the prompts to hear your credit card balance. Many customer service lines can give you the balance automatically without requiring you to speak to a representative. Any questions you have about your account or recent transactions will have to go to a live person.
Over the Internet
If you have set up an online account for your credit card, your process is simple. Just open up a web browser, go to your card issuer’s website, and log on to your account to check your balance. If you haven’t already set up an online account, you can create a new account once you’re on the card issuer’s website. Check the back of your credit card or a recent billing statement to get the correct web address for your credit card issuer. If you need some assistance, your card issuer’s customer service department can help you set up your online account.
Via Regular Account Notifications
With most credit card issuers, once you have set up your online account, you now have free rein to customize how closely you want to monitor account activity. Although this feature was designed mostly to help combat fraud, it allows you to receive emails, push notifications, or text messages notifying you of all recent account activity. Some companies enable you to set up email notifications to update you with your current balance after every purchase or monthly payment.
Via Smartphone App
If you have a smartphone, you can do most of your banking and credit card monitoring right on your phone. Most major credit card issuers have smartphone and tablet apps that you can download to easily check your credit card balance and other credit card details. Visit the Apple App Store or Google Play store to download your card issuer’s app. When you download and open the app, you’ll log in using the same username and password that you’d use on the website. Some companies may let you establish a username and password through the mobile app, but if not, go to the lender’s website. Your smartphone or tablet has to be connected to the internet or cellular data in order for you to access your credit card information via the smartphone app.
