Amex interest

[Anonymous]

So...DH has the Amex version of credit steps on his account. I paid the min by the due date and then paid the statement balance before the statement cut this cycle. Because the steps offer requires the statement cuts with a balance I had to make sure we were going to have a balance.

Statement just cut and he was charged $4 in interest! Read the interest rules and the balance has to be paid by the due date, not statement date to avoid interest. I don't think this is the case with any of our other cards because I've avoided all interest so far until now.

Are there other cards out there like that?

[Anonymous]

If I understand you correctly, what Amex did is what every bank does. Let me see if I got this right. A statement cut. Then you paid the minimum before the due date. Then a few days/weeks later you paid the rest of the statement off before the second statement cut. Is that right? If so, you should've been charged interest. You have the pay off the full statement balance before the due date for that statement. 

For example: Statement cuts with $100 September 1st with a due date of September 25th. To avoid interest you have to pay off all $100 before September 25th. What I think you did is pay off the minimum before September 25th and then paid off the rest of the $100 before the next statement cut October 1st. 

[Anonymous]

Hummm...I guess we push so much spend thru our other cards & PIF after charges post I haven't been charged interest. I usually let a small balance post on each card, but it must accrue after I've already paid the statement balance off. I thought the grace period extended to the statement cut date. Learn something new every day!

[HeavenOhio]

Your new statement balance should come from new charges. Anything that carries over from previous statements will be subject to interest.

My suggestion at this point would be to get in touch with AMEX to see what you can do to make the interest stop without affecting your eligibility for the built-in limit increase. It's possible that anything you charge might be subject to interest right now.

[Anonymous]

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@Anonymous wrote:
So...DH has the Amex version of credit steps on his account. I paid the min by the due date and then paid the statement balance before the statement cut this cycle. Because the steps offer requires the statement cuts with a balance I had to make sure we were going to have a balance.

Statement just cut and he was charged $4 in interest! Read the interest rules and the balance has to be paid by the due date, not statement date to avoid interest. I don't think this is the case with any of our other cards because I've avoided all interest so far until now.

Are there other cards out there like that?

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I think other cards the due date and the new statement date are pretty close together perhaps that is why you haven't paid interest.  

I am not sure why you are doing what you are doing.  I think you are confused about the statement balance and paying your bill.

For example:

July 8th to August 8th you charge 200 dollars.  Statement come out August 11th pay the 200 dollars after statement comes out and before due date of August 23rd

August 9th to September 8th you charge 300 dollars Statement comes out September 11th you pay the 300 dollars before due date of September 23rd

Simple you have balances on statement and you pay zero interest.    Doesn't matter if you charge 300 dollars between August 9th and August 23rd you would have to pay that until after September 11th and avoid interest.   Just look at your statement and pay that total amount of charges before due date and you will be fine. 

[MrDisco99]

If you do not pay the entire balance by the DUE DATE, you will be charged interest.  This is how every credit card works.

If you want to put a non-zero balance on your next statement, it should come from new charges.

[NRB525]

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@MrDisco99 wrote:

If you do not pay the entire balance by the DUE DATE, you will be charged interest.  This is how every credit card works.

If you want to put a non-zero balance on your next statement, it should come from new charges.

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To clarify, you must pay the last Statement Balance by the due date on that statement. After the statement date, those new charges are assigned as part of the next statement cycle, do not need to be paid until after that next statement prints a due date.