Why is my credit card's Total Balance higher than my total number of purchases?

has123

Hi everyone,

I have an American Express card, which I use for most purchases where I can.  My current Total Balance is listed as £637.75.  However, if I count up my purchases on my card since my last direct debit was taken, it only totals as £401.51 (this includes a pending purchase as well).  I'm not sure why there is a £236.24 difference between these - ie: why am I being currently being charged £637.75, if I've seemingly only spent £401.51?  Can anyone tell me why this is?

I've always had a direct debit to pay off the card in full each month, so I don't have any debt / interest to pay.

(Apologies if this question has a very obvious answer; I'm new to much of this!  Thanks for your help.)

[Deleted User]

It'll be the transactions between your last statement and the DD being taken.

Ebe_Scrooge

^^^ Exactly this.  If you have access to your account online, you'll see a real-time (or near as dammit) view of your account.  Your current balance will include any transactions you've made since the last statement was produced.  In fact, this is a good of example of what is meant by the "up to 56 days of interest-free credit" that often confuses some people.  Money you've spent since your last statement is sitting there on your account, but you don't have to pay it back until the next "payment due" date, which is typically about 3 weeks or so after you receive your next statement.

So long as you've got a Direct Debit in place to pay the full amount each month, you've nothing to worry about.  You're doing exactly the right thing - using a credit card in the "correct" way, making the most of the interest-free period, and building up a nice solid credit history to boot :-)

phillw

has123 said:
I'm not sure why there is a £236.24 difference between these - ie: why am I being currently being charged £637.75, if I've seemingly only spent £401.51?  Can anyone tell me why this is?

If you add up all the purchases that you've ever made, take off all the direct debits that have ever been paid then you'll get the balance. The balance doesn't start off at zero just because they take a direct debit, you will usually start off the month owing them money because that is how credit cards work.

The direct debit is for what the balance was the previous month while you're assuming that they take the direct debit for all the transactions that have been made up to that point.

has123

Thanks @Deleted_User @Ebe_Scrooge @phillw!