How long do you have to pay back what you charge before the interest adds up? Or does it add on right away? And what if I only charge like 5 bucks at one time... Should I pay that back right away or wait until I spend more? Thanks yall
Looks like you're pretty young and new to credit cards. You might want to educate yourself about how they work so that you don't end up getting caught in their trap. You need to find out about "billing cycles", "grace periods", "minimum payments", "late fees" and "APRs". You also need to know how credit card companies use the average consumer's ignorance about these traps in order to separate you from your money.
Once you charge something on your credit card, it will appear on your account. You can check your account online and actually see when the charge is applied. You do not need to pay that charge as soon as it hits your account.
At some point during the month, your billing cycle will end. A day or two afterwards, your bill (statement) will be generated. You should receive notification via email (if you do paperless billing) or in your snail mail within a few days of the statement being generated. Any new charges that hit your account after the billing cycle ends will be placed on the next month's statement.
You bill will have a due date. You can pay your bill any time before the due date. If you pay after the due date, they will tack on fees - interest on the amount that is outstanding and also a late fee for not paying on time. Late fees can be pretty high. I think the Disney Visa charges $35 for just being late with your payment. The interest will be calculated based on the annual percentage rate (APR) that you agreed to when you opened the card.
Your statement will show all of your charges, the date that you made them and where you made them. It will also show you the total amount due, when it is due and then the minimum amount that you must pay. Paying just the minimum is not a smart idea. It doesn't get you out of paying the rest, it just puts it off for another month or two or more. In the mean time, you will pay interest on any amount that you don't pay. In fact, the credit card company will go back to the day that you made the charge and calculate the interest from that date if you don't pay your balance in full. By paying your balance in full by the due date every month, you get a grace period where you don't have to pay any interest on the purchases you made. You forfeit that grace period if you fail to pay your balance off in time.
Some charges will not have a grace period no matter when you pay them. Cash advances are like that. So are balance transfers.
To answer your question: You must pay that $5 on or before the date that the bill says. If you do not, you will pay a late fee ($35 ?) and interest. Interest on $5 isn't a whole lot but the late fee would be pretty serious. My Disney Visa statement for last month shows that the billing cycle was 31 days long and that I have at least 21 days from the end of the billing cycle until the payment is due. Theoretically, I could make a purchase on the first day of the billing cycle and not have to pay for it until 51 days later.
