The Difference Between UnionBank Credit Card Statement Balance and Minimum Due
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The Difference Between UnionBank Credit Card Statement Balance and Minimum Due
When your UnionBank credit card bill arrives, you’ll often see two important amounts: the Statement Balance and the Minimum Amount Due.
At first, they might look confusing — Should I pay the full statement balance? Or just the minimum? This question is one of the most common among first-time credit card users in the Philippines, and the answer makes a big difference in how much you’ll pay in interest.
Let’s break it down in simple terms so you can manage your card wisely and avoid unnecessary finance charges.
TL;DR (Too Long; Didn’t Read)
Statement Balance = The total amount you owe for the billing cycle (including purchases, fees, and interest if any).
Minimum Amount Due = The smallest payment required to keep your account active and avoid late fees.
Always aim to pay your Statement Balance in full to avoid interest.
Before diving into the difference, it helps to understand what your monthly statement shows. A typical UnionBank credit card statement includes:
Statement Date – The last day of your billing cycle.
Payment Due Date – The deadline to make payment.
Statement Balance – The total amount you owe as of the statement date.
Minimum Amount Due – The least amount required to keep your account in good standing.
Credit Limit – The total amount of credit UnionBank allows you to use.
Available Credit – The amount you can still spend after current charges.
Now let’s break down the two most important parts: the Statement Balance and Minimum Due.
What Is the Statement Balance?
The Statement Balance is the total amount you owe on your UnionBank credit card at the end of your billing cycle.
It includes:
All purchases made during the billing period
Cash advances (if any)
Any unpaid balances from the previous month
Fees and charges (like annual fees or late payment fees)
Interest, if you didn’t pay in full last month
In short, this is the full amount you owe as of your statement date.
Example:
Let’s say your billing cycle ends on October 20, and your UnionBank statement shows:
Purchases: ₱12,000
Cash advance fee: ₱500
Previous unpaid balance: ₱2,000
Your Statement Balance = ₱14,500.
If you pay this entire amount before the due date, you’ll avoid any interest on new purchases.
What Is the Minimum Amount Due?
The Minimum Amount Due is the smallest amount UnionBank requires you to pay on or before the due date.
Usually, it’s around 3% to 5% of your total balance, or a fixed amount (like ₱500), whichever is higher.
Paying at least the minimum keeps your account from being marked as “past due”, but it does not stop interest from being added to your unpaid balance.
Example:
If your Statement Balance is ₱14,500 and your minimum due is 5%, then:
Minimum Amount Due = ₱725.
If you only pay ₱725, the remaining ₱13,775 will roll over to the next month, and interest will apply.
Key Difference Between Statement Balance and Minimum Due
Feature
Statement Balance
Minimum Amount Due
Definition
Total amount owed for the billing cycle
Smallest amount required to avoid late payment
Interest-Free
Yes (if paid in full before due date)
No, interest applies to unpaid balance
Impact on Credit Score
Positive if paid on time and in full
Keeps account active but increases debt over time
Recommended Payment
Pay in full whenever possible
Only for emergencies or cash flow issues
Why Paying Only the Minimum Is Risky
Many Filipinos think paying the minimum is enough — but this is how credit card debt snowballs.
Here’s why it’s dangerous:
1. Interest Keeps Adding Up
UnionBank’s interest rate (like most banks) is around 2% to 3% per month. If you keep paying only the minimum, the balance will take years to clear — and you’ll pay far more than your original purchases.
You can use the Credit Card Cost Calculator to simulate how much you’ll actually pay if you keep making only the minimum payments.
2. Your Debt Grows Even Without New Purchases
Even if you stop using your card, unpaid balances still earn interest. That means your total debt continues to grow month after month.
3. You Lose the “Grace Period”
If you don’t fully pay off your balance, you lose the interest-free grace period. So even your next month’s purchases will immediately start earning interest.
Real-Life Example: Paying Statement vs. Minimum
Let’s say you spent ₱20,000 on your UnionBank credit card.
Option A: Pay Full Statement Balance
Pay ₱20,000 on or before the due date ✅ No interest ✅ Credit limit fully restored ✅ Credit score improves
Option B: Pay Minimum Due Only (₱1,000)
₱19,000 remains unpaid
3% monthly interest = ₱570
Next month, new balance = ₱19,570
If you repeat this, your debt will keep growing — even without new spending.
Benefits of Paying the Full Statement Balance
Zero Interest Charges You only pay for what you spent — no finance charges.
Better Credit Score Full, on-time payments show lenders you’re a reliable borrower.
Peace of Mind No stress about accumulating debt or missing payments.
More Available Credit Paying in full restores your credit limit immediately for next month’s expenses.
When Paying the Minimum Makes Sense
Of course, there are times when paying only the minimum is understandable. It’s not ideal, but it’s better than missing your payment completely.
Situations where minimum payment helps:
Unexpected expenses or emergencies (e.g., hospital bills)
Temporary cash shortage
You’re waiting for salary to come in
In these cases, paying the minimum due helps you avoid late fees and negative credit reporting — but make sure to pay more the next month.
Tips to Manage Your Credit Card Payments Wisely
1. Set Payment Reminders
Use your phone calendar or the UnionBank mobile app to avoid missed due dates.
2. Pay More Than the Minimum
Even if you can’t pay the full balance, try to pay at least twice the minimum amount to reduce interest.
3. Schedule Payments Right After Payday
Treat your credit card like a bill. Paying early avoids last-minute delays.
4. Monitor Your Spending Weekly
Small purchases can pile up fast. Regularly check your balance so your Statement Balance doesn’t surprise you.
5. Use the Credit Card Cost Calculator
Before deciding how much to pay, try the 👉 Credit Card Cost Calculator It helps you visualize how long it will take to pay off your balance — and how much interest you’ll save by paying more than the minimum.
How UnionBank Calculates Minimum Due and Interest
To help you understand, here’s a simplified breakdown:
Formula for Minimum Due:
Minimum Due = (Percentage of Balance) + (Past Due Amount, if any) + (Overlimit Amount, if any)
Example:
If your balance is ₱30,000 and the minimum due rate is 5%:
₱30,000 x 5% = ₱1,500 If you also have a ₱500 past due, your minimum due = ₱2,000.
How Interest Is Charged:
Interest is computed on the unpaid portion of your balance from the statement date until the next billing date. So the higher your unpaid balance, the more interest adds up next cycle.
Common Mistakes to Avoid
❌ Paying Late
Even if it’s just one day late, late fees and interest apply.
❌ Ignoring the Statement Balance
Always review your full balance and charges — not just the minimum due.
❌ Using Your Credit Limit as Extra Income
A credit card is a payment tool, not a source of money. Spend only what you can afford to pay back.
Quick Recap (TL;DR)
Statement Balance: Full amount you owe for the month.
Minimum Amount Due: Smallest payment to avoid penalties.
Paying only the minimum keeps your account active but makes your debt grow faster.
FAQs About UnionBank Statement Balance vs. Minimum Due
1. What happens if I pay only the minimum due?
You’ll avoid late fees but will be charged interest on the remaining balance.
2. Can I pay less than the minimum?
No. Paying less than the minimum or skipping payment can result in late fees, interest, and even account suspension.
3. Does paying in full every month improve my credit score?
Yes! Consistent full payments show financial discipline, which helps improve your credit history.
4. Can I pay before the due date?
Yes, and it’s actually recommended. Paying early lowers your balance and helps you avoid interest.
5. How do I know my statement and minimum due amounts?
You can check your monthly statement through UnionBank Online or the UnionBank app, which clearly shows both amounts and their due dates.
Final Thoughts
Understanding the difference between your Statement Balance and Minimum Due is key to being a smart credit card user.
If you want to enjoy the benefits of your UnionBank credit card — like rewards, cashback, or travel perks — the secret is simple: pay your Statement Balance in full every month.
And before deciding how much to pay, don’t forget to check out the 👉 Credit Card Cost Calculator to plan your payments wisely and stay debt-free.
