Question about credit cards

[linnell]

I feel like the answer to this is pretty straight forward, but I'm confusing myself.

In March, I paid off all of our credit cards using DHs bonus check, and fortunately we had some left over for a Disney trip later this year. We have pledged to each other that we will no longer carry a balance on our cards, but we are still using the Disney Visa to get the points for our trip. For example, last month we bought some furniture using the card and then I paid the card off online almost immediately.

So here is my question. Our last statement closed 4/25 and the payment is due 5/22. Our next statement will close 5/25. So on 5/1, I paid off the current balance, which was the 4/25 closing balance and a couple hundred dollars extra that cleared after that. We have used the card since then, so we have about $800 on it right now. If I don't pay that off until my next statement due date (presumably 6/22) will I be charged interest? I am right that I owe them nothing until that June 22nd date, right? I guess what I'm asking is that if just pay the balance at the end of each statement, then I'm in the clear for interest? I think paying online is confusing me.

I'm sorry if this makes no sense, like I said, I keep confusing myself. Thanks!

 

[sandynd]

Don't wait for the billing cycle to go through to pay things off. Pay off all your new purchases within the grace period (usually 21 days since the purchase) and you will not have to pay interest.

 

[TifffanyD]

I feel like the answer to this is pretty straight forward, but I'm confusing myself.

In March, I paid off all of our credit cards using DHs bonus check, and fortunately we had some left over for a Disney trip later this year. We have pledged to each other that we will no longer carry a balance on our cards, but we are still using the Disney Visa to get the points for our trip. For example, last month we bought some furniture using the card and then I paid the card off online almost immediately.

So here is my question. Our last statement closed 4/25 and the payment is due 5/22. Our next statement will close 5/25. So on 5/1, I paid off the current balance, which was the 4/25 closing balance and a couple hundred dollars extra that cleared after that. We have used the card since then, so we have about $800 on it right now. If I don't pay that off until my next statement due date (presumably 6/22) will I be charged interest? I am right that I owe them nothing until that June 22nd date, right? I guess what I'm asking is that if just pay the balance at the end of each statement, then I'm in the clear for interest? I think paying online is confusing me.

I'm sorry if this makes no sense, like I said, I keep confusing myself. Thanks!

Yes I do this too. My statement just closed at $xx and even though I had made some purchases since then that is the amount I just paid to them. I will be charged no interest. My interest YTD is 0%... same as last year and the year before... so I have been doing this awhile

 

[Disneybuckeye]

WOW! You guys are good. That is way too much effort for me. I get my bill and I set it up to online bill pay in full the day before it is due. I only pay the total amount of the bill for that month. Even though purchases overlap, I never pay any interest. I figure my money can sit in my account and earn interest just as well as theirs.

Obviously what you are doing works, so I say do whatever you have to do to avoid paying interest. Congrats on paying off your cards!

 

[CrzyforPiglet]

So here is my question. Our last statement closed 4/25 and the payment is due 5/22. Our next statement will close 5/25. So on 5/1, I paid off the current balance, which was the 4/25 closing balance and a couple hundred dollars extra that cleared after that. We have used the card since then, so we have about $800 on it right now. If I don't pay that off until my next statement due date (presumably 6/22) will I be charged interest? I am right that I owe them nothing until that June 22nd date, right? I guess what I'm asking is that if just pay the balance at the end of each statement, then I'm in the clear for interest? I think paying online is confusing me

Short answer is no - as long as you have paid off the statement balance by the due date then you will not pay any interest. We only pay our credit cards once a month after the statement closes and have never paid any interest. We also don't advance pay on our cards (like the couple hundred you've put on yours) because there really isn't a need but if it helps with your budgeting then go for it. Credit card interest is only charged on outstanding balances that carry over from one month to the next - so if you only paid the minimum by the due date then the remaining balance then starts accruing interest until you pay it off. Credit card companies don't charge you interest on your current purchases. Hope that helps!

 

[seashoreCM]

Actually, some credit card companies charge interest on purchases made that month even when made a few days before the day the statement is printed. This may happen if some interest was charged for other reasons and shown on the statement with those purchases. The exact rules vary from one credit card company to another.

 

[riley2008]

WOW! You guys are good. That is way too much effort for me. I get my bill and I set it up to online bill pay in full the day before it is due. I only pay the total amount of the bill for that month. Even though purchases overlap, I never pay any interest. I figure my money can sit in my account and earn interest just as well as theirs.

Obviously what you are doing works, so I say do whatever you have to do to avoid paying interest. Congrats on paying off your cards!

This is what I do too! No interest for us, but the rewards just keep coming!!!!

 

[Celidh]

I would think you need to pay it by when the billing date is, I'm not sure if that is the same as your due date. I had charged something on my Visa and paid it 4 days later but unfortunately the date they billed me was between the day I bought it and the day I paid it off. I had to pay interest in it! that really sucked because it as a $700.00 purchase. Needless to say I was more than a little PO'd.