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Avoiding interest charges posting on statement date

Established Member

Avoiding interest charges posting on statement date

Hi all. Smiley Happy

 

I'm trying to get my BoA Visa to report $0 this month, but I'm not sure if they're going to sneak in an interest charge on the last day of the cycle. Here's my activity for the month:

 

Beginning Balance as of 03/11/2010    $1,994.03  

03/11/2010     PAYMENT - ELECTRONIC     -$725.00     $1,269.03

03/12/2010     INTEREST REFUND    -$0.19     $1,268.84

03/12/2010     INTEREST REFUND     -$0.01     $1,268.83

03/15/2010     Purchase     $128.64     $1,397.47

03/22/2010     Purchase     $74.04     $1,471.51

03/29/2010     PAYMENT - ELECTRONIC    -$1,471.51     -$0.00

04/01/2010     Purchase     $278.26     $278.26

04/05/2010     PAYMENT - ELECTRONIC      -$278.26     -$0.00
 
Does anyone know how to figure out how much interest I might owe? Or if BoA will let me just pay extra before the statement date? If so, I'll just send them a $20 payment today. I just don't want them to send it back to me in a check. ;

 

TIA

 

 


 
 
 
 
    

Message 1 of 6
5 REPLIES
Regular Contributor

Re: Avoiding interest charges posting on statement date

Do they charge interest daily, or is there a grace period on the account?

Message 2 of 6
Established Member

Re: Avoiding interest charges posting on statement date

I couldn't find my original agreement, but I looked it up on BoA's website. Ths is what it says:

 

"Grace Period/Paying Interest
Your due date is at least 25 days after the close of each billing cycle. We will not charge you any interest on purchases
if you pay your entire balance by the due date each month. We will begin charging interest on cash advances and
balance transfers on the transaction date.


Balance Subject to Interest Rate
Average Daily Balance Method (including new Purchases): We calculate separate Balances Subject to an Interest
Rate for Purchases and for each Promotional Offer balance consisting of Purchases by: (1) calculating a daily balance
for each day in the current billing cycle; (2) adding all the daily balances together; and (3) dividing the sum of the daily
balances by the number of days in the current billing cycle. If any portion of any Purchases balance received a Grace
Period, that amount is not included in this calculation.
To calculate the daily balance for each day in the current billing cycle, we take the beginning balance, add an amount
equal to the applicable DPR multiplied by the previous day’s daily balance, add new Purchases, new Account Fees,
and new Transaction Fees, and subtract applicable payments and credits. If any daily balance is less than zero we treat
it as zero.
We do not include the fee for credit card debt cancellation or credit insurance purchased through us in calculating the
beginning Purchase balance until the first day of the billing cycle after the billing cycle in which such fee is billed.
Average Daily Balance Method (including new Balance Transfers and new Cash Advances): We calculate
separate Balances Subject to an Interests Rate for Balance Transfer, Cash Advances, and for each Promotional Offer
balance consisting of Balance Transfers or Cash Advances by: (1) calculating a daily balance for each day in the
current billing cycle; (2) calculating a daily balance for each day prior to the current billing cycle that had a “Pre-Cycle
balance” – a Pre-Cycle balance is a Balance Transfer or a Cash Advance with a transaction date prior to the current
billing cycle but with a posting date within the current billing cycle; (3) adding all the daily balances together; and (4)
dividing the sum of the daily balances by the number of days in the current billing cycle.
To calculate the daily balance for each day in the current billing cycle, we take the beginning balance, add an amount
equal to the applicable DPR multiplied by the previous day’s daily balance, add new Balance Transfers, Cash
Advances and Transaction Fees, and subtract applicable payments and credits. If any daily balance is less than zero we
treat it as zero.
To calculate a daily balance for each day prior to the current billing cycle that had a Pre-Cycle balance, we take the
beginning balance attributable solely to a Pre-Cycle balance (which will be zero on the transaction date associated with
the first Pre-Cycle balance), add an amount equal to the applicable DPR multiplied by the previous day’s daily balance,
and add only the applicable Pre-Cycle balances, and their related Transaction Fees. We exclude from this calculation
all transactions posted in previous billing cycles."

 

$1836.77 of the $1994.03 beginning balance is listed under cash advances, so if I understand it correctly, they'll charge me interest on that. It all looks like Greek to me though!

 

 

 

Message 3 of 6
Senior Contributor

Re: Avoiding interest charges posting on statement date

You will have interest charges.   There is no grace period for cash advances.    Also, if you carried a balance on purchases, it will take 2 PIF cycles to be clear of interest.

 

Why do you need it to be exactly $0?

Message 4 of 6
Established Member

Re: Avoiding interest charges posting on statement date

Trying to see how many points I can squeeze out of FICO. Smiley Wink I have 3 cards and want each to report a 1% balance every 3 months. Hoping the CC companies (and FICO) won't zing me for non-use. My NFCU card needs to report a balance this month, so I want the others at 0.

 

 

 

 

 

Message 5 of 6
Highlighted
Established Member

Re: Avoiding interest charges posting on statement date

Well, I just called BoA to see what they'd do if I overpaid and they said it would just show as a credit on my account, so I made a $20 phone payment. Should report $0 balance now. Thanks for the help. I would've been bummed if I had to wait another month for it to finally report $0!

 

 

Message 6 of 6